Subsidy on LPG Cylinders for domestic use.

GOVERNMENT OF NCT OF DELHI DEPARTMENT OF TRADE & TAXES
Subject: Delhi Govt. gives subsidy of Rs.40/- per 14.2 kg. domestic cylinder of LPG or Rs.2.82/kg. for other packages for domestic use only

Date: 07 Jun 2008 Notification No.F.5(25)/Policy-II/VAT/Misc.Amend./2008/89-101

Notification

In exercise of the powers conferred under Sub-section (3) of Section 70 of the Delhi Value Added Tax Act, 2004, I, Archna Arora, Commissioner, Trade & Taxes, do hereby clarify that the subsidy of Rs.40/- per 14.2 kg. domestic cylinder of LPG or Rs.2.82/kg. for other packages for domestic use only by the Government of NCT of Delhi shall not form part of the sale price as this subsidy would be provided by the State Government and the entire benefit of such subsidy will pass on to the consumers and such subsidy would be reduced from the basic price and such reduced price would be construed as sale price for the purpose of calculation of Value Added Tax (VAT).
It is, further, clarified that while filing returns, the Oil Companies shall adjust the subsidy amount as mentioned above so calculated on their sales of domestic LPG in NCT of Delhi against the VAT payable to the Government on the sales of the company and the difference between tax payable by the company in accordance to the provisions of the Act and amount of tax paid by the company shall not be termed as tax deficiency due to adjustment of such subsidy since the subsidy amount shall be credited to the Department by the Food & Supplies Department, Government of NCT of Delhi.
This shall be effective with immediate effect.

(Archana Arora)
Commissioner, Value Added Tax