The Delhi Sales Tax Act, 1975
The Delhi Sales Tax Act, 1975
Overview:
The Delhi Sales Tax Act, 1975 is a legislation enacted by the Government of the National Capital Territory of Delhi to regulate the levy and collection of sales tax on the sale or purchase of goods within Delhi. This Act governs the taxation of goods sold in the course of business and helps in the administration and enforcement of sales tax laws in Delhi.
Purpose:
To impose and collect tax on sales and purchases of goods in Delhi.
To regulate dealers who engage in selling goods.
To provide mechanisms for registration, assessment, payment, and recovery of sales tax.
To prevent tax evasion and ensure proper compliance.
Key Provisions:
Levy of Tax: The Act levies tax on the sale of goods at prescribed rates.
Registration of Dealers: Every dealer whose turnover exceeds a specified limit must register with the tax authorities.
Returns and Assessments: Dealers must file periodic returns and are subject to assessment by tax officers.
Tax Collection and Payment: Tax is collected at the point of sale or purchase, and dealers are responsible for timely payment.
Penalties and Appeals: The Act prescribes penalties for non-compliance and provides a framework for appeals.
Exemptions: Certain goods or transactions may be exempted from tax under specific conditions.
Applicability:
Applies to all dealers and transactions involving goods within Delhi.
Includes local sales and inter-state purchases where Delhi is the destination.
Importance:
The Act is crucial for Delhi’s revenue system and helps in the economic regulation of trade within the territory by ensuring that sales tax is properly levied and collected.
Table Summary
| Aspect | Details |
|---|---|
| Name of Act | The Delhi Sales Tax Act, 1975 |
| Jurisdiction | National Capital Territory of Delhi |
| Purpose | Levy and collection of sales tax on goods |
| Tax Imposed On | Sale and purchase of goods within Delhi |
| Registration | Mandatory for dealers above turnover limit |
| Returns | Periodic filing of sales tax returns |
| Assessment | Conducted by tax authorities |
| Penalties | For late payment, non-registration, evasion |
| Exemptions | Provided for specific goods and transactions |
| Effective Since | 1975 |
| Key Authorities | Delhi Commercial Tax Department |
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