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
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