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The Union Cabinet today gave its approval for promulgation of (i) the Daman & Diu Value Added Tax (Amendment) Regulation, 2005 and (ii) the Dadra & Nagar Haveli (Amendment) Regulation, 2005 by the President under Article 240 of the Constitution for:
(a) giving an enabling power to the Government of Daman & Diu and Dadra & Nagar Haveli to specify the points of sale in a series of sale at which the goods may be taxed ( Section 14A); and
(b) insertion of two sub-sections under Section 102 of the Principal Regulations viz. sub-section (3) providing for penalties for breach of rules made under the VAT Regulations and sub-section (4) providing for laying of the rules framed under the VAT Regulations, in Parliament [(section 102(3) and 103(4)].
The new section 14A in the respective VAT Regulations of Daman & Diu and Dadra & Nagar Haveli is as follows :
“14A: Notwithstanding anything contained in the Regulation, the Government may, by notification and subject to such conditions, if any as may be specified therein, specify the point of sale in the series of sale by the first or the successive dealers as the point at which any goods or class of goods may be taxed, and on the issue of such notification, the sales at points of sales in relation to any such goods or class of goods other than the point of sale so notified, shall be exempted from payment of tax under this Regulation”.
In the interest of simplicity, drugs and medicines could be taxed at first point at MRP as recommended by the Empowered Committee of State Finance Ministers. Further, certain goods whose prices are not fully market determined could also be taxed at first point such as – liquor, lottery tickets, petrol, diesel, aviation turbine fuel and other motor spirit.
The insertion of sub-sections will help in imposing penalties for breach of the rules framed under the respective Regulations.
YSR/HS/HK/LV
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