Section 3 in Daman and Diu Value Added Tax Regulation, 2005
3. Incidence of tax.
(1)Every dealer, who is registered under this Regulation or required to be registered under this Regulation, shall be liable to pay tax calculated in accordance with section 11.(2)The tax calculated under sub-section (1) shall be payable on every sale of goods effected by a dealer -(a)on and from the day on which the dealer was required to be registered under this Regulation; or(b)during the period he is registered as a dealer under this Regulation.(3)The liability to pay tax shall be on the sales effected after a dealer exceeds the taxable quantum.(4)The net tax shall be paid by a dealer within twenty-eight days from the last day of his tax period.(5)Tax shall be paid in the manner specified in section 36.(6)Every dealer, who becomes liable to pay tax under this Regulation on the sale of goods, shall continue to be so liable unless his taxable turnover during any preceding consecutive twelve months or such further period as may be prescribed, has remained below the taxable quantum and on the expiry of such twelve months or further period his liability to pay tax shall cease:Provided that any dealer, whose liability to pay tax under this Regulation ceases for any other reason, may apply for the cancellation of his certificate of registration on or after the date on which his liability to pay tax ceases, and on such cancellation, his liability to pay tax shall cease:Provided further that a dealer shall remain liable to pay tax until the date on which his certificate of registration is cancelled.(7)Every dealer, whose liability to pay tax under this Regulation has ceased or whose certificate of registration has been cancelled, shall, if his turnover calculated from the commencement of any year (including the year in which the registration has been cancelled), at any subsequent day exceeds the taxable quantum within such year, be liable to pay such tax on and from the date on which his turnover subsequently exceeds the taxable quantum, on all sales effected by him on and after that day.(8)Where it is found that any person registered as a dealer ought not to have been so registered, then notwithstanding anything contained in this Regulation, such person shall be liable to pay tax for the period during which he was so registered.(9)If any person who transports goods or holds goods in custody for delivery to, or on behalf of any person, on being required by the Commissioner -(a)to furnish any information in his possession in respect of the goods; or(b)to permit inspection thereof,fails to furnish such information or permit such inspection, then, without prejudice to any other action which may be taken against such person, under this Regulation or any other law for the time being in force, a presumption may be raised that the goods in respect of which he has failed to furnish such information or permit such inspection, are owned by him and are held by him for sale in Daman and Diu and the provisions of this Regulation shall apply accordingly.Explanation. - For the removal of doubts it is hereby declared that the tax levied under this section shall apply to every -(a)sale (including a sale by way of installment or hire purchase) of goods, made on and after the date of commencement of this Regulation;(b)sale by way of the transfer of a right to use goods, to the extent that the right to use goods is exercised after the date of commencement of this Regulation.
