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Section 40A of Delhi Value Added Tax Act 2004 - Agreement to defeat the intention and application of this Act to be void

What is the meaning of Agreement to defeat the intention and application of this Act to be void? Section 40A of DVAT Act 2004

Section 40A : Agreement to defeat the intention and application of this Act to be void - Delhi Value Added Tax Act 2004

 

(1) If the Commissioner is satisfied that an arrangement has been entered into between two or more persons or dealers to defeat the application or purposes of this Act or any provision of this Act, then, the Commissioner may, by order, declare the arrangement to be null and void as regard the application and purposes of this Act and may, by the said order, provide for the increase or decrease in the amount of tax payable by any person or dealer who is affected by the arrangement, whether or not, such dealer or person is a party to the arrangement, in such manner as the Commissioner considers appropriate so as to counteract any tax advantage obtained by that dealer from or under the arrangement.

(2) For the purposes of this section -

(a) "arrangement" includes any contract, agreement, plan or understanding, whether enforceable in law or not, and all steps and transactions by which the arrangement is sought to be carried into effect;

(b) "tax advantage" includes, -

(i) any reduction in the liability of any dealer to pay tax,

(ii) any increase in the entitlement of any dealer to claim input tax credit or refund,

(iii) any reduction in the sale price or purchase price receivable or payable
by any dealer.

DELHI VALUE ADDED TAX ACT 2004

Section 21 : Amendment of registration

Section 22 : Cancellation of registration

Section 23 : Effect of de-registration

Section 24 : Registration during transition

Section 25 : Security from certain classes of dealers and other persons

Section 26 : Periodical payment of tax and furnishing of returns

Section 27 : Power to require other returns

Section 28 : Correction of deficiencies

Section 29 : Signing returns

Section 30 : Assessment of tax, interest or penalty

 

 

Section 31 : Self assessment

Section 32 : Default assessment of tax payable

Section 33 : Assessment of penalty

Section 34 : Limitation on assessment and re-assessment

Section 35 : Collection of assessed tax and penalties

 

 

Section 36 : Manner of payment of tax, penalties and interest

Section 36A : Tax deducted at source

Section 37 : Order of application of payments

Section 38 : Refunds

Section 39 : Power to withhold refund in certain cases

Section 40 : Collection of tax only by registered dealers

Section 40A : Agreement to defeat the intention and application of this Act to be void

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