The Value Added Tax Department
DADRA & NAGAR HAVE DAMAN & DIU
Beneficiary Oriented Solution - State
Public distribution
Published By: N
The Union Territory (U.T). of Daman & Diu is a centrally administered territory without legislature. The territory was under Portugal Rule up to its liberation i.e. up to 19/12/1961. The GOI had exempted this U.T. from Sales tax regime. However, with the increase in Industries, Trade and commercial activities in the U.T.
Project Details
Brief Background
The Union Territory (U.T). of Daman & Diu is a centrally administered territory without legislature. The territory was under Portugal Rule up to its liberation i.e. up to 19/12/1961. The GOI had exempted this U.T. from Sales tax regime. However, with the increase in Industries, Trade and commercial activities in the U.T.
Objective
There was persistence from the neighbouring States to discontinue the exemption of tax to avoid unhealthy competition of prices among the neighboring States; it was decided to impose sales tax in the U.T.
Benefits
Accordingly, the Daman & Diu Sales Tax Act & Rules, 1964 and rules made there under and Central Sales Tax Act, 1956 for Sales Tax came in to force from 1964. Further with the implementation of VAT Policy at all India level, the Daman & Diu Regulation 2005 & Daman & Diu Value Added Rules 2005 were enforced with effect from 01.04.2005.
