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Delhi Value Added Tax Act, 2004

Section 31 of DVAT Act, 2004 - Self Assessment

Section 31 of the Delhi Value Added Tax Act, 2004 (DVAT Act) establishes self-assessment: when a person files a compliant return containing the prescribed information, the return itself triggers a deemed assessment of the tax payable. The provision also specifies when no such deemed assessment arises.

Scope: GST replaced VAT on most supplies from 1 July 2017. DVAT provisions remain relevant to periods, proceedings and goods that continue to fall within the Delhi VAT framework. Applicable amendments, notifications and the tax period should always be checked.

Section 31: Self assessment - statutory provision

(1) Where a return is furnished by a person as required under section 26 or section 27 of this Act which contains the prescribed information and complies with the requirements of this Act and the rules

(a) the Commissioner is taken to have made, on the day on which the return is furnished, an assessment of the tax payable of the amount specified in the return;

(b) the return is deemed to be a notice of the assessment and to be under the hand of the Commissioner; and

(c) the notice referred to in clause (b) is deemed to have been served on the person on the day on which the Commissioner is deemed to have made the assessment.

(2) No assessment shall arise under sub-section (1) of this section, if the Commissioner has already made an assessment of tax in respect of the same tax period under another section of this Act.

Meaning and operation of self-assessment

Self-assessment means that a qualifying return operates as the basis of assessment without the Commissioner first issuing a separate assessment order. Section 31 creates three linked legal effects on the date of filing: the tax declared in the return is treated as assessed, the return is treated as an assessment notice signed by the Commissioner, and that notice is treated as served.

Conditions for deemed assessment

  • A person furnishes a return under Section 26 or Section 27.
  • The return contains the information prescribed by law.
  • The return complies with the DVAT Act and the applicable rules.
  • The Commissioner has not already assessed tax for that same tax period under another provision.

Exception under Section 31(2)

If the Commissioner has already made an assessment for the same tax period under another section of the DVAT Act, the later return does not create a second self-assessment under Section 31(1). This prevents overlapping deemed assessments for the same period.

Section 26 addresses periodical payment of tax and returns; Section 27 covers other returns required by the Commissioner; Section 28 deals with correction of deficiencies; Section 29 governs signing returns; Section 30 addresses assessment of tax, interest or penalty; and Section 32 addresses default assessment.

Frequently asked questions

Is a separate assessment notice necessary after filing a compliant return?

Under Section 31(1), the compliant return itself is deemed to be the assessment notice, signed by the Commissioner and served on the filing date.

Does every DVAT return result in self-assessment?

No. The statutory requirements must be met, and Section 31(2) excludes cases where tax has already been assessed for that period under another provision.

Official resources

Consult the Delhi Department of Trade and Taxes for current notices and administration, the DVAT notifications and the India Code legislative database. Historical consolidated Act and Rules publications should be read with subsequent amendments and notifications.