GOVERNMENT OF NCT OF DELHI
DEPARTMENT OF TRADE AND TAXES, (POLICY BRANCH)
VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI~110002
No.F.7( 436)jPolicyjVATj2012j (;.4..-7 0 Dated:
CIRCULAR NOJ.OF 2012-13
Subject:- Clarification regarding preserving of DVAT 43 by the contractors
Sub rule (2) of rule 59 of DVAT Rules, 2005 stipulates that a person
who has deducted tax under sub section (1) of section 36 A of DVAT Act,
2004 shall issue a certificate of deduction of tax in form DVAT-43. Such
certificate shall be issued in triplicate. The first copy shall be furnished by the
contractee to the contractor, second copy shall be attached along with the
T.D.S. return as prescribed in sub rule (4) of this rule and the third copy shall
be retained by the contractee for his records.
Sub section (7) of section 36A of DVAT Act, 2004 stipulates that a
dealer claiming adjustment in his tax return of the amount deducted under
this section shall preserve the Certificate issued to him for a period of seven
years and shall produce the same to the Commissioner on demand.
However, as per clause (iv) of sub rule (1) of rule 27 and sub rule (3) of
rule 28 read with forms DVAT- 16 and DVAT- 17, a dealer claiming
adjustment in his tax return of the amount of tax deducted under sectipn 36A
is required to submit the certificate in form DVAT-43, in original, along with
the DVAT return in form DVAT-16 or DVAT-17. ,:"}~,
The above three provisions of DVAT Act and Rules read together mean
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that the contractee will furnish one copy of certificate in form DVAT-43 to the
contractor whereas the contractor is required to submit this certificate with his
DVAT return and also to preserve it for seven years.
-2-
In view of this apparent contradiction in the different provisions of
DVAT Act and Rules, it is clarified that the contractor may file a photocopy of
the form DVAT-43 along with the return in form DVAT-16 or DVAT-17, as the
case may be. The original form DVAT-43 issued by the contractee may be
preserved by the contractor and produced before the Assessing Authority
whenever demanded.
This issues with the prior approval of the Commissioner VAT.
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(T.C. Sharma)
VATO (Policy)
No.F.7(436)/Policy/VAT/2012/b0~' 0 Dated:
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