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Registration Under DVAT Act 2004 (Delhi Sales Tax Registration)

A SNAP SHOT

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Registration

Dealer

Registered under Delhi Sales Tax

Act, Works Contract Act or Right to use Goods Act

shall be automatically registered

Every Dealer whose Turnover exceeds the taxable Quantum shall

be liable to register from the day his turnover so

exceeds.

Voluntary Registration

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Liability to Tax► Every dealer who is registered under this Act or who is required to be registered under this Act shall be

liable to pay tax on taxable turnover at the rate specified in Sec. 4, i.e.

a) Goods specified in First Schedule Exempt from taxb) Goods specified in Second Schedule @ 1%c) Goods specified in Third Schedule @ 4d) Goods specified in Fourth Schedule @ 20% %f) Goods other than specified above @ 12.5%i.e., general rate

► Taxable Quantum or threshold limit prescribed for making a dealer liable to pay tax & for registration is:a) For a dealer who imports goods for sale in Delhi Nilb) For a dealer who exports goods out of Delhi Nilc) For others Rs 10 Lakh

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Documents Required for VAT Registration The application for registration is to be accompanied by the following:

► An application for Registration is to be made in Form DVAT-04 with the prescribed fee.

► A security not exceeding Rs 1 lakh is to be submitted along with the application for registration. The security amount can be reduced by a maximum of Rs 50,000 if you can provide certain documents with your registration application. The reduction in the security amount allowed for various documents is as follows.

► Last paid electricity bill in your name, Last paid telephone bill in your name, A PAN number.

► A document as proof of ownership of principal place of business.

► A document as proof of ownership of residential property and a notarized photocopy of the passport of proprietor/ managing partner or managing director

► Security may be in cash, bank guarantee, post office cash certificates, bonds/debentures, dealers' surety, or mortgage of immoveable property. The surety for registration may be revised by the Commissioner under some circumstances.

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Contd…

► Proof of incorporation of the applicant dealer i.e.► Partnership Deed in case of Partnership firm► Certificate of Incorporation, MOA and AOA in case of Company► Certificate of registration, memorandum and articles in case of Society and Trust► Two Self Addressed Envelopes► NOTE : Amount of security can be reduced by the amount given in bracket in front of the documents

if submitted with DVAT 04 but up to a maximum of Rs. 50,000/-► Copy of the last paid electricity

bill (10,000)► Copy of the last paid telephone bill (5,000)► Pan of the applicant (10,000)► Proof of the resident of proprietor (30,000)► Proof of ownership of principal place of business (20,000)► Notarized copy of passport of proprietor (10,000)

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RETURNS► DVAT Returns in form DVAT 16 is to be filled within 28 days from the end of the tax period along

with proof of payment in DVAT 20 . The Tax Period along with proof of payment in DVAT 20. The return period is one month for the dealer having turnover of 5 crore or above and quarterly or monthly for others at their opinion . The return under .C.S.T Act shall be filed for the above period i.e. monthly or quarterly according to the tax period adopted for DVAT purposes

► Besides return filed under CST Act, an annual reconciliation Statement shall also be submitted by 31st December along with statutory declarations forms such as C,D, E,F form etc. Reconciliation will be made and if there is any tax due for which forms are not received, tax shall be payable along with the reconciliation statement.

► Revised return can also be filed if an error is detected by the dealer which has resulted in payment o f less tax. Revised return has to be filed in form DVAT 16 along with explanatory note and with payment of tax deficiency and interest . Return can be furnished within the period of 4 years. For dealer opting for composition scheme the revised return has to be furnished in DVAT 17. It must be noted that such revised return can be filed if there is lesser payment of tax. However, if the mistake results in excess payment of tax, return can not be revised but the dealer can file an objection under Section 74.

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Contact us at:

For more information or DVAT Registration contact us at

Jatin GuptaPartner, VGGlobal

VGGlobal Advisors Private LimitedAdd: 24/4818, Prahlad Street,

Daryaganj, Ansari Road, Delhi-110002,

Ph: 9891191000

Email: Jatingupta@vgglobal.co.in

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