Section 20 of Delhi Value Added Tax 2004 - Effect of registration

What is the Effect of registration? Section 20 of DVAT Act 2004

Section 20 : Effect of registration - Delhi Value Added Tax Act 2004

Rule: 10 Form: 19

(1) If at the time at which an unregistered dealer's registration takes effect after the commencement of this Act and ?

(a) the dealer holds trading stock for the purpose of sale, or for use as raw materials for the production of finished goods;

(b) the dealer has borne input tax on the purchase of the trading stock or raw materials;

(c) the dealer furnishes a statement of its trading stock and raw materials in the prescribed form to the Commissioner; and


(d) the dealer holds adequate proof of the amount of input tax in respect of the purchases; the dealer shall be entitled to a tax credit for the trading stock or raw materials held by the dealer on the date that the dealer's registration takes effect; PROVIDED that the dealer must claim the entire amount of tax credit to which he is entitled in a single claim, which accompanies the first return furnished by the dealer under this Act.

Explanation I.- This section applies where goods have borne tax imposed after the commencement of this Act;

Explanation II.- Section 14 deals with goods which have borne sales tax prior to the commencement of this Act.

(2) For the purposes of sub-section (3) of section 9 of this Act, the amount of the tax credit shall be the least of -

(a) the amount of input tax disclosed in the proof referred to in clause (d) of sub-section (1) of this section;

(b) the tax fraction of the cost of the goods;

(c) the tax fraction of the fair market value of the goods at the time of registration; or (d) such amount as may be prescribed.

(3) Where the registered dealer accounts for turnover on the basis of amounts received and amounts paid, he shall exclude from his turnover -

(a) any amount received after he is registered in respect of sales made while he was unregistered; and

(b) any amount paid after he is registered in respect of purchases made while he was unregistered.



Section 2  : Definitions

Section 3  : Imposition of tax

Section 4  : Rates of tax

Section 5  : Taxable turnover

Section 6  : Sale exempt from tax



Section 7  : Certain sales not liable to tax

Section 8  : Adjustments to tax

Section 9  : Tax credit

Section 10  : Adjustment to tax credit

Section 11  : Net tax



Section 11A  : Tax on goods supplied by contractee

Section 12  : Time at which turnover, turnover of purchases and adjustments arise

Section 13 : Priority

Section 14 : Treatment of stock brought forward during transition

Section 15 : Second-hand goods



Section 16 : Composition scheme for specified dealers

Section 16A : Special provisions relating to casual traders

Section 17 : Transactions between related parties

Section 18 : Mandatory and voluntary registration

Section 19 : Registration

Section 20 : Effect of registration

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