Section 2 in Daman and Diu Value Added Tax Regulation, 2005
2. Definitions.
- In this Regulation, unless the context otherwise requires,-(a)"accountant" means -(i)a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 and who has obtained a (38 of 1949) certificate of practice under sub-section (1) of section 6 of that Act; or(ii)a person, who, by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956, (1 of 1956) is entitled to be appointed to act as an auditor under that sub-section; or(iii)an auditor appointed in pursuance of sub-section (2) of section 619 of the Companies Act, 1956 (1 of 1956);(b)"Administrator" means the Administrator of the Union territory of Daman and Diu appointed by the President under article 239 of the Constitution;(c)"Appellate Tribunal" means the Appellate Tribunal constituted under section 73;(d)"business" includes -(i)any trade, commerce or manufacture,(ii)any adventure or concern in the nature of trade, commerce or manufacture,(iii)any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern,(iv)any occasional transaction in the nature of such trade, commerce, manufacture, adventure or concern whether or not there is volume, frequency, continuity or regularity of such transaction, andwhether or not such trade, commerce, manufacture, adventure or concern transaction is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure, concern or transaction.Explanation. - For the purposes of this clause -(A)any transaction of sale or purchase of capital assets pertaining to such trade, commerce, manufacture, adventure, concern or transaction referred to in subclauses (i) to (iv) shall be deemed to be business;(B)purchase of any goods, the price of which is debited in the books of account of the dealer and sale of any goods, the proceeds of which are credited in the books of account of the dealer shall be deemed to be business;(e)"business premises" means -(i)the address of a dealer or, the place at which a dealer carries on the business and which is registered as such;(ii)any building or place used by a person for carrying on his business, but does not include the building or place used for residential purposes;(f)"capital goods" means plant, machinery and equipment used in the trade or manufacturing of goods;(g)"casual trader" means a person who, whether as principal, agent or in any other capacity undertakes occasional transactions in the nature of business involving buying, selling, supply or distribution of goods or conducting any exhibition-cum-sale in Daman and Diu whether for cash, deferred payment, commission, remuneration or other valuable consideration;(h)"Commissioner" means the Commissioner of Value Added Tax appointed under sub-section (1) of section 66;(i)"dealer" means any person who carries on business in Daman and Diu and includes-(i)any person who for the purposes of, or in connection with, or incidental to, or in the course of, his business buys, sells, supplies or distributes goods directly or otherwise, whether for cash or for deferred payment or for commission, remuneration or other valuable consideration;(ii)any department of the Central Government or a State Government, a local authority, Panchayat, Municipality, Development Authority, Cantonment Board and an autonomous or a statutory body or an industrial, commercial, banking, insurance or trading undertaking whether or not of the Central Government or any of the State Governments or of a local authority, if it buys, sells, supplies or distributes goods, in the course of activities which may by notification specified from time to time;(iii)a factor, commission agent, broker, del credere agent, or any other mercantile agent by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal, whether disclosed or not;(iv)an agent of any of the persons referred to in subclauses (iii) or (vi) or (vii) or (viii) or (ix) of clause (i), whether or not the person referred to in the said subclauses is a dealer residing in Daman and Diu;(v)a local branch of a firm or company or association of persons, outside Daman and Diu where such firm, company, association of persons is a dealer within the meaning of sub-clause (i), or sub-clause (iii), or sub-clause (vi), or sub-clause (vii), or sub-clause (viii), or sub-clause (ix) of this clause;(vi)a club, association, society, trust, or co-operative society, whether incorporated or not, which buys goods from, or sells goods to, its members for price, fee or subscription, whether or not in the course of business;(vii)an auctioneer, who sells or auctions goods belonging to any principal, whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal;(viii)a casual trader; or(ix)any person who, for the purposes of, or in connection with, or incidental to, or in the course of, his business, disposes of any goods as unclaimed or confiscated, or unserviceable or scrap, surplus, old, obsolete or as discarded material or waste products by way of sale;(j)"Daman and Diu" means the Union territory of Daman and Diu;(k)"fair market value" means the value at which goods of like kind and quality are ordinarily sold or would be sold in the same quantities between unrelated parties in the open market at the same time in Daman and Diu;(l)"goods" means every kind of movable property (other than newspapers, actionable claims, stocks, shares and securities) and includes -(i)livestock, all materials, articles or commodities including standing trees and things attached to or forming part of the land which are agreed to be severed before sale or under a contract of sale; and(ii)property in goods (whether as goods or in some other form) involved in the execution of a works contract, lease or hire-purchase or those to be used in the fitting out, improvement or repair of movable property;(m)"goods vehicle" means a motor vehicle, vessel, boat, animal and any other form of conveyance used for carrying goods;(n)"Government" means the Administrator;(o)"import" means sale or purchase in the course of the import of goods into the territory of India if the sale or purchase either occasions such import or is effected by transfer of document of title to the goods before the goods have crossed the customs frontiers of India and includes procurement of goods from outside the Daman and Diu either as a result of purchase or otherwise.Explanation. - In the case of goods arriving in Daman and Diu from a foreign country through customs, the "import of the goods in Daman and Diu" shall occur at the place where the goods are cleared by Customs for home consumption;(p)"in the course of" includes activities done for the purposes of, in connection with, or incidental to and activities done as part of, the preparation for the activity and in the termination of, the activity;(q)"input tax" in relation to the purchase of goods, means the proportion of the price paid by the buyer for the goods which represents tax under this Regulation;(r)"net tax" means the amount calculated for a tax period under section 11;(s)"non-creditable goods" means the goods listed in the Sixth Schedule;(t)"notification" means a notification published in the Official Gazette and the expression "notify" shall be construed accordingly;(u)"Official Gazette" means the Daman and Diu Gazette;(v)"prescribed" means prescribed by rules made under this Regulation;(w)"registered dealer" means a dealer who has been granted a certificate of registration under section 19;(x)"related person" means a person who is related to another person (referred to in this definition as a "dealer") if the person -(i)is a relative of the dealer;(ii)is a partnership of which the dealer is a partner;(iii)is a company in which the dealer [either alone or along-with another person who is, or persons who are, related to the dealer under any of the sub-clauses (i), (ii), (iv), (v) or (vi) of this clause] directly or indirectly holds forty per cent. or more of stock or shares or voting rights;(iv)is a person who [either alone or along-with another person who is, or other persons who are, related to the person under any of the sub-clauses (i), (ii), (iv), (v) or (vi) of this clause] directly or indirectly owns forty per cent. or more of outstanding voting stock or shares of the dealer or voting rights;(v)is a company in which forty per cent. or more of outstanding voting stock is held directly or indirectly by a person [either alone or along-with another person who is, or other persons who are, related to the person under any of the sub-clauses (i), (ii), (iv), (v) or (vi) of this clause] who also holds forty per cent. or more of the outstanding voting stock or shares of the dealer; or(vi)is controlled by the dealer, or a person whom the dealer controls, or is a person who is controlled by the same person who controls the dealer;(y)"relative" means a relative as defined in clause (41) of section 2 of the Companies Act, 1956 (1 of 1956);(z)"sale", with its grammatical variations and cognate expression, means any transfer of property in goods by one person to another for cash or for deferred payment or for other valuable consideration and includes-(i)a transfer of goods on hire-purchase or other system of payment by installments, but does not include a mortgage or hypothecation of, or a charge, or pledge, on goods;(ii)supply of goods by a society (including a cooperative society), club, firm, or any association to its members for cash or for deferred payment or for commission, remuneration or other valuable consideration, whether or not in the course of business;(iii)transfer of property in goods by an auctioneer referred to in sub-clause (vii) of clause (i) of this section, or sale of goods in the course of any other activity in the nature of banking, insurance which in the course of their main activity also sells goods possession of which has been taken from borrower or reclaimed;(iv)transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;(v)transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;(vi)transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;(vii)supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or other valuable consideration;(viii)every disposal of goods referred to in sub-clause (ix) of clause (i) of this section,and the expressions "sell", "buy" and "purchase", shall, with all their grammatical variations and cognate expressions, be construed accordingly;(za)"sale price" means the amount paid or payable as valuable consideration for any sale, and includes -(i)the amount of tax, if any, for which the dealer is liable under section 3;(ii)in relation to the transaction, being delivery of goods on hire-purchase or any system of payment by installments, the amount of valuable consideration payable to a person for such delivery including hire-charges, interest and other charges incidental to such transaction;(iii)in relation to transfer of the right to use any goods for any purpose (whether or not for a specified period), the valuable consideration or charges received or receivable for such transfer;(iv)any sum charged for anything done by the dealer in respect of goods at the time of, or before, the delivery thereof;(v)the amount of duties levied or leviable on the goods under the Central Excise Act, 1944 (1 of 1944) or the Customs Act, 1962 (52 of 1962), or the Goa, Daman and Diu Excise Duty Act, 1964 (5 of 1964), as extended to the Union territory of Daman and Diu, whether such duties are payable by the seller or any other person;(vi)the amount received or receivable by the seller by way of non-refundable deposit which has been received or is receivable whether by way of separate agreement or not, in connection with, or incidental to or ancillary to the sale of goods; and(vii)in relation to works contract, the amount of valuable consideration paid or payable to a dealer for the execution of the works contract,but does not include -(a)any sum allowed as discount which reduces the sale price according to the practice normally prevailing in the trade;(b)the cost of freight or delivery or the cost of installation in cases where such cost is separately charged;(zb)"Schedule" means a Schedule appended to this Regulation;(zc)"sufficient proof" means such documents, testimony or other evidence relevant for deposit of tax, filing of return or proceedings under this Regulation and which may be prescribed;(zd)"tax" means tax leviable and payable under this Regulation;(ze)"taxable quantum" means the amount specified in subsection (2) of section 18 ;(zf)"tax invoice" means a tax invoice of the nature referred to in section 50;(zg)"tax period" means such period as may be prescribed;(zh)"tax fraction" means the fraction calculated in accordance with formula given below:-r / (r+100)where 'r' is the percentage rate of tax applicable to the sale under this Regulation;(zi)"transporter" means any person who, for the purposes of, or in connection with, or incidental to, or in the course of, his business, transports or causes to transport goods, and includes any person whose business consists of shipping, air cargo, inland container depot, container freight station, courier service, airline or railways;(zj)"turnover of purchases" means the aggregate of the amounts of purchase price (including any input tax) paid or payable by a person in any tax period;(zk)"turnover" means the aggregate of the amounts of sale price received or receivable by the person in any tax period, as reduced by any tax for which the person is liable under section 3;(zl)"value of goods" means the fair market value of the goods and includes insurance charges, excise duties, countervailing duties, tax paid or payable under the Central Sales Tax Act, 1956, transport charges, freight charges and all other charges incidental to the sale of the goods;(zm)"works contract" includes any agreement for carrying out, the construction of building, manufacture, processing, fabrication, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property, whether for cash or the deferred payment or for other valuable consideration;(zn)"year" means the financial year.
