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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., 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.

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. Thus at present following tax laws are in force.

The Department of Value Added Tax falls under the Finance Department, Administration of the U.T of Daman & Diu. The prime responsibility of the department is overlooking the Revenue administration of the Commercial Taxes Acts.


The Department of Value Added Tax, Administration of Daman & Diu, administers the following Acts::

1. The Daman & Diu Value Added Tax Regulation, 2005

2. The Daman & Diu Sales Tax Act & Rules, 1964

3. The Central Sales Tax Act , 1956                                                  

Value Added Tax is a major source of revenue for the Union Territory (U.T) of Daman & Diu. Sales Tax is the most important source of revenue for the UT of Daman & Diu. During 2008-2009, the VAT collected ` 211.53 crores and ` 216.32 crores in 2009-10 on account of Sales Tax (including Value Added Tax), and ` 252.12 crores during 2010-11. The U.T. is exempted zone for manufacturing dealers registered between 01.01.1984 to 31.03.1999 who fulfilled the criteria laid down under the provisions of Daman & Diu Sales Tax Act & Rules, 1964 and rules made there under for Sales Tax as per the Central Sales Tax Act,1956. The Exemption has been extended for 15 years upto 31.12.2017 for interstate sales as well as local sales subject to auditions prescribed vide Notifications. Dealers have been registered with this department as traders and manufactures (70% dealer are the manufactures).

There are three stages in taxation. The first is the incidence of tax, the second is quantification or assessment of tax and the third is the recovery of tax. A dealer liable to pay tax has to take a certificate of registration from the Department, although his liability which is dependent only on the taxable event does not depend on Registration.

Latest Modifications in VATSoft :
  •   UT Administration has been ammended the TAX Rate 4% to 5%. For detail see the Notification section. wef 14.Jan.2016
  •   Dealer list has been updated, effective from 28/10/2016.
  •   Dealer please note: Bulk upload Transasction Details option is now available under the E-I and E-II Form Request, effective from 01/11/2015.
  •   Department has updated and streamlined the e-Return(Revised), e-Challan and e-Payment module, effective from 14/08/2015.
  •   Dealer please note: This is to inform you that, Due to technical problem, message related to non-filling of return of 2014-15 is sent to the all dealers. If you already filled the return of the said period, Please ignore the message. Inconvenience deeply regretted.
  •   Dealer please note: This is to inform you that, shutdown of VATSoft application services on 16th April, 2015 for about 1 and half hours (from 5PM to 6.30PM) due to Website maintenance activity.
  •   Dealer please note: Please upload Assessment Order 2010-11 for Statutory Forms, effective from 01/04/2015.
  •   Dealer please note: Bulk upload Transasction Details option is now available under the F-Form Request, effective from 21/02/2015.
  •   Dealer please note: The issues regarding DVAT 31A have been resolved. Please download fresh copy of convertor.
  •   e-Return module has been updated and e-Challan module has been introduced. Please download fresh copy of converter and see the user manual of challan generation and upload.
  •   The issue of error during return submission has been resolved.
  •   TDS RC number format has been updated. Please collect fresh copies of TDS RC from the department(w.e.f 23rd July 2014). Please visit the department with original TDS Certificate.
  •   Dealer please note: Please use new format of TDS RC number while making TDS e-Payments online.
  •   The manual entry of invoice details in the C-Form application screen has been disable , effective from 24th May 2014. All invoices that have to be in the C-Forms should mandatorily be part of returns filed.
  •   The online system now allows you to choose the business unit while validating .xml files and applying for the statutory forms, in case multiple business units are associated with that TIN number.
  •   Please ensure that you have uploaded the 2009-10 assessment order before you apply for C Forms.The C Forms application will be rejected if 2009-10 order is not uploaded.
  •   C-Form final output updatd - C-Form period and no.of invoices added.  
  •   Ensure that the returns filed are up to date before applying for C forms. The system will not issue C forms untill returns are updated, effective from 07/05/2014.  
  •   The Fatal error for Seller Name "ESN" has been solved. Please download the fresh copy of "New Convertor" before filling the return.
  •   Please use party name as given in dealer list on this website while filling returns.
  •   F and H forms available online only effective from 1st April,2014(for for details please see notification regarding it).
  •   Submit authorised signatory details if not allready submited. please bring photo copy of PAN card, address proof in the prescribed format to IT department.