The Delhi Goods and Services Tax (GST) department issued Standard Operating Procedure (SOP) for Attachment or Detachment of the Bank account.
The banks are attached/detached to recover the outstanding amounts from the vendors or dealers. Notices for recovery are to be given to the dealers in compliance with the DVAT/GST Act and Rules established thereunder as soon as it comes to the attention of the Ward/Proper Officer.
Under Section 46 of the Delhi Value Added Tax Act (DVAT) and Sections 78 & 79 of the Delhi Goods and Services Tax Act, 2017, the bank accounts of the dealers may be frozen by the Ward/Proper Officers in order to recoup tax, penalty, interest, and any other outstanding debts.
Additionally, to preserve the revenue in certain circumstances, Sections 83 and 46A of the DGST Act, 2017, respectively, provide for temporary attachment.
In accordance with the aforementioned rules, a SOP comprising instructions for manually delivering letters to the bank managers for attachment or detachment of the bank account was released on March 4, 2022.
Procedure to attach/detach bank account
The procedure to be followed on attachment/detachment of bank account according to the notification is:
i. Approval of the Commissioner, Trade & Taxes is mandatory before attachment/detachment of bank account of erring dealers.
ii. While issuing the letter to the Bank Manager for attaching/detachment the Bank account of the dealers, the said letter shall be digitally signed by the concerned Ward Officer/Proper Officer. A copy of the letter should also be forwarded to the Nodal Officer.
Iii. The letter must be in the prescribed format indicating the name, Email and mobile no. of the Ward In-charge/Proper Officer who is sending the said letter.
iv. The Ward In-charge/Proper Officer shall also send an email from his official Email-ID to the Bank Manager of the respective Bank.
v. The Ward Officer should specifically mention in the letter of detachment that in case any clarification/confirmation is needed by the bank before detaching the bank account, the same can be sort from the Nodal Officer.
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