02 August, 2015

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After Entertainment Tax, Now Delhi Government Increases Luxury Tax

VAT Reduced on Utensils and wooden furniture. Luxury Tax Increased on spa, gymnasium and living in expensive hotels

Utensils and wooden furniture will become cheaper in the national Capital with the Delhi government announcing more than a seven per cent reduction in the Value Added Tax (VAT) imposed on such items, said a statement issued on Saturday.

On the other hand, going to the spa, gymnasium and living in expensive hotels will become costlier due to an increase in luxury tax.

The tax reduction, which came into force on Saturday, is for items under three categories — utensils or cutlery items made of metal (including pressure cookers and pans), except those made of precious metals, wax of all kinds not covered by any other entry of any schedule of the Delhi VAT Act, 2004, and wood and timber.

According to the government, the decision to slash the VAT from 12.5 per cent to 5 per cent on such items is in keeping with the amendments approved recently by the Delhi Assembly to the Delhi Value Added Tax Act, 2004.

“The Delhi government is of the view that the existing ambiguity in the tax structure for no valid reason needs to be rectified,” the statement said.

“Rationalisation of VAT and other taxes is the need of the hour and the Delhi government will continue with its pro-people reforms,” it added.

(TO BE PUBLISHED IN THE DELHI GAZETTE PART IV EXTRAORDINARY)

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI

FINANCE (REVENUE-I) DEPARTMENT

DELHI SECRETARIAT, I.P. ESTATE, NEW DELHI-02

NOTIFICATION No. F. 3(11)/Fin(Rev-I)/2015-16/ds-vi/599

Dated the 30/07/2015

Whereas the Lt. Governor of the National Capital Territory  of Delhi is of the opinion that it is expedient in the interest of general public so to do;

Now, therefore in exercise of the powers conferred by section 103  of the DVAT (Delhi Act 3 of  2005 ) the Lt. Governor of the National Capital Territory of Delhi, hereby, makes the following amendments in the Third Schedule appended to the said Act, namely :-

AMENDMENTS

In the third Schedule appended to the Delhi Value Added Tax Act 2004 (Delhi Act 3 of 2005).

(a) for the entry at SI. No. 6. the following entry shall he substituted, namely:-

"6. All utensils and cutlery items made of metals (including pressure cookers /pans) except those made of precious metals.":;

(b) for the entry at SI.No.120  the following entry shall he substituted, namely :-

"120. Wax of all kinds not covered by any other entry of any schedule.";

(c) the following entry shall be inserted at SI. No. 169, namely :-

“169. Wood and Timber."

This notification shall come into force with effect from 1st August 2015.

By order and in the name of the

Lieutenant Governor of the National

Capital Territory of Delhi,

(A.K. SINGH)

DY. SECRETARY -VI(FINANCE)

(TO BE PUBLISHED IN THE DELHI GAZETTE PART IV EXTRAORDINARY)

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI

FINANCE (REVENUE-I) DEPARTMENT

DELHI SECRETARIAT, I.P. ESTATE, NEW DELHI-02

NOTIFICATION No. F. 12(2)/Fin(Rev-I)/2015-16/ds-vi/594

Dated the 30/07/2015

In exercise of the powers conferred by sub-section (2) of section 3 of the Delhi Tax on Luxuries Act, 1996 (Delhi Act 10 of 1996) and in supersession  of  this  Government's Notification No.F.12(6)/Fin(T&E)/2008-2009/jsfin/248 dated the 22nd June, 2009, except as respects things done or omitted to be done before such supersession the Government of  National Capital Territory of Delhi, hereby notifies that the rate of tax to be levied on the turnover of receipt of a proprietor of hotels shall be fifteen percent w.e.f.  1st  August 2015.

By order and in the name of the

Lieutenant Governor of the National

Capital Territory of Delhi,

(A.K. SINGH)

DY. SECRETARY VI(FINANCE)

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