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Delhi Value Added Tax Act, 2004 | Chapter V - Returns

Section 26 of the DVAT Act, 2004: Periodical Payment of Tax and Furnishing of Returns

Section 26 specifies the obligation of registered dealers liable to pay Delhi value added tax to submit periodic returns. It is read with Rules 26 to 28 of the Delhi Value Added Tax Rules, 2005 and the applicable return forms.

Scope and applicability: The Goods and Services Tax regime commenced on 1 July 2017 for most goods and services. Delhi VAT requirements may still be relevant to goods outside GST and to earlier tax periods, subject to the applicable amendments, notifications and transitional provisions. The historical provisions below should not be treated as a substitute for current department instructions for a particular tax period.

Section 26: Statutory provision

(1) Every registered dealer who is liable to pay tax under this Act shall furnish to the Commissioner such returns for each tax period and by such dates as may be prescribed and in the prescribed form and manner.

(2) and (3): Omitted with effect from 1 April 2013 by the Delhi Value Added Tax (Amendment) Act, 2013.

The above sets out the operative provision as reflected in the Delhi Department of Trade and Taxes' published consolidated Act (as at 5 March 2014). Subsequent notifications and amendments, where relevant, should also be checked.

Meaning and essential requirements

Who must file?

A registered dealer liable to pay tax under the DVAT Act must furnish returns to the Commissioner. Registration and tax liability are determined under the Act and the relevant notifications; this obligation should not be assumed to apply identically to every business registered under GST.

What is a tax period?

A tax period is the reporting period prescribed under the DVAT Rules for the dealer. The frequency and filing deadline depend on the rules and any applicable orders or notifications. The Act itself does not prescribe a universal due date in section 26.

How must a return be filed?

The dealer must use the applicable prescribed form and filing manner, report the relevant turnover, tax and adjustments, and comply with the verification and accompanying-document requirements. Any payment of tax due should follow the applicable statutory payment procedure.

Rules 26 to 28 and prescribed forms

  • Rule 26: Relevant procedural provisions associated with returns and dealer obligations, to be read in the version applicable to the tax period.
  • Rule 27 (Returns - General): Governs the form, information, verification, supporting documents and separate returns for certain agents and trustees.
  • Rule 28 (Dealers' periodic returns): Provides for periodic returns, including Form DVAT-16 for dealers liable under section 3 and Form DVAT-17 for dealers electing composition under section 16, subject to applicable provisions.

Important amendment history

Section 26 was substituted by the DVAT (Second Amendment) Act, 2005 with effect from 16 November 2005. The words and manner were introduced with effect from 1 April 2013. The former subsections (2) and (3), relating to additional electronic returns and optional filing schemes, were omitted with effect from 1 April 2013. They should not be reproduced as currently operative subsections.

Practical compliance checklist

  1. Identify the relevant goods, taxable activity and tax period under the applicable DVAT provisions.
  2. Confirm registration status, the filing frequency and deadline applicable to that period.
  3. Use the appropriate DVAT-16 or DVAT-17 form, as applicable, and reconcile sales, purchases, credits and tax payable.
  4. File using the mode prescribed by the department, retain the acknowledgement and make any required payment.
  5. Review departmental notices, amendments and outstanding historical returns or assessments, if any.

Section 25: Security | Section 27: Power to require other returns | Section 28: Correction of deficiencies | Section 29: Signing returns

Official legal resources

Information is provided for statutory reference. Verify the relevant tax-period rules, orders and amendments before filing.