Chapter 1 Chapter 1

Preliminary

("Short title, extent and commencement")

1. (1) This Act may be called the Delhi Sales Tax on Works Contracts Act, 1999.
2. (2) It extends to the whole of the National Capital Territory of Delhi.
3. (3) It shall come into force on such date as the Government may, by notification in the official Gazette, appoint.

("Definitions")

1. (1) In this Act, unless the context otherwise requires:-
   • (a) "contractor" means any person who executes a works contract and includes a sub-contractor;
   • (b) "contractee" means any person for whom or for whose benefit a works contract is executed;
   • (c) "The Delhi Sales Tax Act" means the Delhi Sales Tax Act, 1975 (43 of 1975);
   • (d) "dealer" means any person, who whether for valuable consideration, commission, remuneration or otherwise, transfers property in goods (whether as goods or in some other form) involved in the execution of a works contract and includes any State Government and the Central Government which so transfers such property in goods, and any society, club or association of persons which so transfers the property in goods to its members;
   • (e) "declared goods" means goods as declared by the Central Sales Tax Act, 1956 (74 of 1956);
   • (f) "goods" means every kind of movable property (other than newspapers, actionable claims, stocks, shares and securities) and includes all materials, articles and things of any kind involved in the execution of a works contract;
   • (g) "Government" means the Lt. Governor as defined under Article 239 AA of the Constitution;
   • (h) "Lt. Governor" means Lt. Governor of National Capital Territory of Delhi as appointed by the President under Article 239 of the Constitution;
     • (i) "person" includes an individual, or body of individuals whether incorporated or not, a Hindu undivided Family, a firm, a local authority, a corporation, a company, body or authority owned or set up by, or subject to administrative control of the Central Government or any State Government (including the Government of a Union territory) or a cooperative society, whether registered or not;
   • (j) "prescribed" means prescribed by rules;
   • (k) "registered dealer" means a dealer registered under section 11;
   • (l) "rules" means rules made under this Act;
   • (m) "sale" means a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract in Delhi; and the word "sell" with all its grammatical variation and cognate expressions shall be construed accordingly;
   • (n) "sale price" in relation to a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract in Delhi, means such amount as is arrived at by deducting from the amount of valuable consideration paid or payable to a person for execution of such works contract, the amount representing labour and service charges for such execution;
   • (o) "taxable turnover" means such turnover as is arrived at after deducting from the turnover of sale such as may be prescribed;
   • (p) "tax" means the tax payable under this Act and includes a lump sum amount by way of composition payable in lieu of the amount of tax;
   • (q) "turnover of sale" means the aggregate of the amount of sale price received or receivable by a dealer in respect of any transfer of property in goods involved in the execution of any works contract whether executed fully or partly during any period;
   • (r) "works contract" includes any agreement for carrying out for cash or for deferred payment or for any valuable consideration, the building construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property; "year" means the financial year.
2. (2) All words and expression used and not defined in this Act but defined in the Delhi Sales Tax Act, 1975 shall have the meanings assigned to them in that Act.