Delhi Value Added Tax Act, 2004 / Returns

Section 28 DVAT Act 2004: Correction of Deficiencies in Returns

Section 28 of the Delhi Value Added Tax Act, 2004 (DVAT Act) deals with correction of discrepancies discovered in returns already furnished for a tax period. It provides for a revised return and, where tax was underpaid, payment of the outstanding tax and applicable interest.

Current legal context: Since the introduction of GST on 1 July 2017, Delhi VAT principally remains relevant to goods outside GST and to earlier VAT periods, subject to applicable amendments, notifications, limitation rules and transitional provisions. Historical deadlines described below should not be treated as current filing extensions.

Section 28 - Statutory provision

Related provision: Rule 29 of the Delhi Value Added Tax Rules, 2005; Forms DVAT-16 and DVAT-17, where applicable.

If a person discovers a discrepancy in a return furnished by him for a tax period under this Act, he shall remove such discrepancy and furnish a revised return within the year following the year of such tax period:
Provided that if, as a result of the discrepancy, the person has paid less tax than was due under this Act, he shall pay the tax owed and interest thereon:
Provided further that for the years 2008-09, 2009-10 and 2010-11, except for those returns pertaining to any tax period of 2010-11 which were scheduled to be furnished in the year 2011-12, the revised return shall be required to be furnished by 31st December, 2012.

The text above reproduces the provision appearing in the source webpage. For a filing or dispute, check subsequent amendments and the version applicable to the relevant tax period against official legislation.

Meaning and scope of Section 28

What is a discrepancy?

A discrepancy is an error or inconsistency in an already-filed DVAT return. Examples may include incorrectly reported taxable turnover, output tax, input tax credit or other particulars affecting the declared tax position. Whether a particular adjustment is permissible depends on the applicable statutory provisions and records.

Revised return and time limit

Under the provision reproduced above, a person discovering a discrepancy must correct it by furnishing a revised return within the year following the year of the relevant tax period. The time limit must be read with the legislation and amendments applicable to the period in question; a revised return should not be assumed to be available indefinitely.

Additional tax and interest

Where correction reveals that less tax was paid than was legally due, the first proviso requires payment of the shortfall and interest. A revised return alone does not discharge the obligation to pay any additional amount due.

Special historical extension

The second proviso specifies 31 December 2012 for certain returns for 2008-09, 2009-10 and 2010-11, with the stated exclusion for returns of 2010-11 scheduled to be furnished in 2011-12. This is a historical transitional deadline, not a current general filing date.

Practical steps when correcting a DVAT return

Identify the tax period and the discrepancy in the original return.
Reconcile sales, purchases, tax invoices, ledgers and the amount of tax already paid.
Check whether a revised return can still be filed under the law and procedures applicable to that period.
Calculate and pay any tax shortfall and applicable interest.
Submit the prescribed revised return through the available official procedure and retain the acknowledgment and supporting records.

Section 26 deals with periodic returns and payment of tax. Section 27 concerns the Commissioner's power to require other returns. Section 29 addresses signing of returns.

Official references

Consult the Department of Trade and Taxes, Government of NCT of Delhi for legislation, rules, forms, notifications and current procedures. For the wider indirect-tax framework, see the official GST portal. The DVAT Act and Rules should be checked in their applicable amended form for the relevant period.