www.Aaptaxlaw.com
 
 
 
 
 

What is DVAT? What is turn over limit for mandatory registration with DVAT? How to voluntarily register with Delhi Value Added Tax?

What is DVAT Mechanism and Calculation of Tax Liability?
In DVAT mechanism Manufacturer, Wholesaler or retail dealer charges tax on sales. However the dealers are allowed to claim credit for the tax already paid on purchase of materials sold or material inputs, and is required to pay only the net amount of tax to the government. This credit offset mechanism ensures that the tax des not accumulate as goods pass from the manufacturer to the wholesaler or retailer.

 

Net tax payable by a dealer can be calculated between total tax charged on its sales (out put tax) during a given period and the tax paid on its purchases (input Tax) during the period. If the out put tax for the period exceeds input tax, the difference amount of tax is payable to the government. If the input tax exceeds output tax, the dealer is entitled to a refund of the excess, or to carry forward the excess to be offset against tax payable in future period.

The dealer is liable to deposit the next tax amount on or before 21st of the next month which is due date for depositing DVAT.
 
Under Delhi Value Added Tax (DVAT) Mechanism, the tax rolls forward at each intermediate transaction to the point of final sale to the consumer. When the goods reaches the consumers, the total tax paid by all intermediate dealers equals the tax on the final sale price of the goods.

Standard Rates of Delhi Value Added Tax (DVAT)
The standard rate of Delhi Value Added Tax is 12.50%.

Other rates are 1%, 5% and 20% apply to certain specified goods such as gold and silver articles, coarse grains, garments and petroleum.

What is the Turnover Limit for mandatory registration with DVAT? What is Registration requirement?
If the dealer is not already registered, obligation to register and pay tax starts on the day when turnover exceeds Rs. 20 lakhs or the dealer make an interstate sale or purchase. Other dealers who are interested to register with DVAT can also register voluntarily before reaching the turnover limit.

What is the Time limit for mandatory registration with Delhi Value Added Tax (DVAT)?
The dealer needs to apply for registration of VAT within 30 days, once the turnover crosses the thresholds.

 

Value Added Tax (VAT)

How to Register with Central Sales Tax? What is the Procedure for CST Registration? Documents for CST Registration

How to register with DVAT? What are the documents, forms and Procedures to register with Delhi Value Added Tax

What is DVAT? What is turn over limit for mandatory registration with DVAT? How to voluntarily register with Delhi Value Added Tax?

What are the Schedules and DVAT Rates? What is the rate of VAT to be charged by the contractors? What are Delhi Value Added Tax Rates?

Central Sales Tax (CST)

What is liability on Interstate Sales as per Central Sales Tax Act 1956? Section 6 of Central Sales tax Act 1956

Who has the burden of proof in case of transfer of goods claimed otherwise than sale? Section 6A of Central Sales tax Act 1956

Who should Register under Central Sales Tax Act ? Section 7 of Central Sales tax Act 1956, Registration of Dealers under CST

What are the Penalties under Central Sales Tax Act 1956? Section 10 of Central Sales tax Act 1956, Penalties under CST

How to avoid prosecution under Central Sales Tax Act 1956? Imposition of Penalty in lieu of Prosecution under Section 10 of Central Sales tax Act 1956

 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap