Section 5 in The Delhi Sales Tax on Right to Use Goods Act, 2002
5. Liability of dealer.
(1)Every dealer whose turnover of sales made during:-(a)the year ending on the 31st day of March, 2002(b)the year commencing on the 1st day of April, 2002 has exceeded or exceeds the limit of four lakh rupees shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act on the turnover of sales made by him on or after the appointed day:Provided that a dealer to whom clause (b) above, applies and whose turnover of sales exceeds the limit of four lakh rupees after the appointed day shall not be liable to pay tax in respect of sales which take place upto the time when his turnover of sales as computed from the 1st day of April, 2002 first exceeds such limit.(2)Every dealer whose turnover of sales during any year commencing on the 1st day of April, being a year subsequent to the years mentioned in sub-section (1) first exceeds the limit of four lakh rupees shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act with effect from the said date:Provided that a dealer shall not be liable to pay any tax in respect of such of the turnover of sales as takes place during the period commencing on the 1st day of April of the said year upto the time when his turnover of sales as computed from the 1st day of April of the said year first exceeds the limit of four lakh rupees.(3)Every dealer who becomes liable to pay tax under this Act and every dealer who has been registered under Section 7 shall continue to be so liable until the expiry of three consecutive years during each of which his turnover has failed to exceed the limit of four lakh rupees and such further period as may be prescribed or until his registration certificate is duly cancelled, as the case may be, and upon expiry of such period or upon such cancellation of his certificate of registration, as the case may be his liability to pay tax on other than the tax already levied or leviable shall cease until his turnover of sales again exceeds the limit of four lakh rupees:Provided that where the dealer becomes liable to pay tax again in the same year in which he ceased to be liable as aforesaid, then in respect of sales which take place during the period commencing on the date of cessation of liability to tax and ending on the day on which his turnover of sales first exceeds such limit, no tax shall be payable.
