Delhi VAT (DVAT) Registration

Delhi VAT Registration is mandatory for dealers in Delhi having a turnover of over Rs.20 lakhs in the current financial year or those dealers involved in the sale or manufacturing of goods originating from outside the state. Also, any person who is a dealer or intends to be a dealer may also obtain VAT Registration voluntarily. Click here to download Delhi VAT Act, 2004.

Hassle Free Delhi Vat (DVAT) Registration

For Business-man & Traders

For becoming a registered Dealer/Trader, First they have to apply for obtaining registration number or TIN number to the State Government (SG) with the required prescribed list of documents then after they are eligible to collected or charge Sales Tax or VAT from their customer/consumer. After Delhi VAT Registration approval, the tax department will issue a Tax Identification Number (TIN Number), which can be used for all communication pertaining to the VAT Registration.

Documents Required For Delhi Vat Registration

Proprietor

  • PAN card of Applicant.
  • Address Proof of Applicant (Voter ID, Passport, Driving License).
  • Aadhar Card / Election ID of Applicant (Mandatory).
  • Bank Account authentication Details (Cancelled Cheque).
  • Registered Office Address Proof:-
    • If Rented: Rent Agreement.
    • If Owned: Ownership proof.
  • Utility Bill like Electricity bill / Telephone bill/ Rent Agreement property documents supporting the registered address proof If Electricity bill is not in your name - you can attach No Objection Certificate.
  • Purchase Bill of goods purchased (photocopy)
  • Sale Bill of goods sold (photocopy)
  • List of Goods to be dealt in along with goods required for packing, if any
  • Five photographs of Applicant
  • Prop. Rubber Stamp

Company / Partnership Firm / LLP

  • Pan of Company / Firm,
  • Company MOA/Firm Partnership Deed
  • Board Resolution authorizing director to apply for Sales Tax Registration.
  • PAN of all directors / Partners.
  • Address Proof of all directors / Partners.
  • Aadhar Card / Election ID of at least 1 Director / Partner (Mandatory).
  • Bank Cancelled Cheque.
  • Registered Office Address Proof:-
    • If Rented: Rent Agreement.
    • If Owned: Ownership proof.
  • Utility Bill like Electricity bill/Telephone bill/ Rent Agreement/property documents for registered address proof If Electricity bill is not in your name - you can attach NOC.
  • Purchase Bill of goods purchased.
  • Sale Bill of goods sold copy.
  • List of Goods to be dealt in along with goods required for packing, if any
  • Four photographs of all Directors/Partners.
  • Rubber Stamp of Firm / Company.

Rajput Jain & Associates is a Leading provider of DVAT Registration Services & Other DVAT Services.Rajput Jain & Associates can help you obtain VAT or TIN registration.

For any information / query regarding VAT or TIN registrationServices, Contact Us

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Frequently Asked Questions (Faq)

  • What is VAT?

    VAT is value added tax, a tax levied on the sale of goods in India. Each State in India has unique VAT Regulation and different tax rates are applicable for different types of products. Therefore the VAT Tax Rate and Exemptions will be unique to each State and type of goods sold.

    Advantage Of VAT

    • Under a VAT system, the buyer knows, out of the total consideration paid for purchase of material, what is tax component. Thus, the system ensures transparency also.
    • VAT facilitates precise identification and rebate of the tax on purchases and thus ensures that there is no cascading effect of tax
    • A perfect system of VAT is a perfect chain where tax evasion is difficult.
    • VAT does not have any inflationary impact as it merely replaces the existing equal sales tax. It may also be pointed out that with the introduction of VAT; the tax impact on raw material is to be totally eliminated.
  • Who has to pay VAT?

    VAT is ultimately borne by the end consumer. At each stage, the person purchasing the goods must pay VAT and is allowed to set-off the VAT paid against the VAT liability on subsequent sale. Thereby making the end consumer pay the VAT.

  • What is the VAT rate?

    Delhi VAT Tax Rates: In Delhi VAT Tax Rates are levied under seven categories. The Delhi VAT Tax Rate schedule determines which goods full under each of the seven categories and the VAT tax rate associated with that category.

    .
    Schedule I Schedule II Schedule III Schedule IV General Category
    VAT Exempted – (Example:Books, Charcoal, Fresh Vegetables, Meat, etc.,)1% VAT Tax – (Example: Bullion, Gold, Silver, Precious Metals, Precious Stones, etc.,) 5% VAT Tax – (Example: Communication equipment, bricks, utensils, coffee seeds, computers, etc.,) 20% VAT Tax – (Example: Liquor, Lottery Tickets, Aerated Drinks, etc.,) 20% VAT Tax – 12.5% VAT Rate

    Click here to view the complete Delhi VAT Tax Rates Schedule

  • What are the Feature of DVAT

    VAT registration main highlights

    Value Added Tax

    Value Added Tax (VAT) is a tax levied on the sales of goods in India. Manufactures and traders should obtain VAT Registration, if they have annual sales of more than Rs. 20 lakhs

    End Consumer bears VAT

    All purchasers of goods in India must pay VAT. However, at each stage, the person purchasing the goods is allowed to set-off the VAT paid against the VAT liability on subsequent sale. Thereby making the end consumer pay the VAT.

    VAT / TIN / CST are the Same

    VAT / TIN / CST utilize the same unique 11 digit number. Therefore, VAT / TIN / CST are the same and obtaining VAT Registration from the State authorities will suffice as the TIN or CST Registration also.

    State Level Tax

    VAT is determined and collected by the State Governments. Therefore, each State has a different VAT Regulation based on the type of goods sold. Therefore, it is best for businesses to be aware of the State's VAT Regulation applicable to them.

    VAT Due Dates

    VAT Payments must be deposited in designated banks quarterly in case of Proprietary Firms, LLPs or Partnership Firms and monthly in the case of other type of business entities like Companies. VAT Returns must be filed monthly on the 20th.

    NO VAT on Exports

    For goods exported from India, VAT is not applicable. Therefore, exporters of goods are not required to pay VAT. However, it is advisable for exporters to obtain VAT registration.

  • What is TIN Registration?

    Every business established in India needs to obtain certain tax registrations keeping in view the nature of business carried on by them. The non-registration under any applicable tax registration attracts heavy penalties. TIN stands for Tax-Payer Identification Number, a registration that is the same as VAT registration or CST Registration. TIN Registration provides the manufacturer or trader with a unique 11 digit number that is the same as VAT Registration Number. Therefore, VAT Registration, TIN Registration and CST Registration are one and the same.

  • What is CST Registration?

    CST is Central Sales Tax Registration and VAT Registration is now used as the CST Registration also. Therefore, once the manufacturer or dealers obtains VAT Registration, it can also be used as CST Registration or TIN Registration.

  • How long does it take to obtain VAT registration?

    VAT Registration is issued by the State Government. Therefore, based on the State, the processing time for obtaining VAT Registration will differ. In general, VAT Registration can be obtained in 5 - 10 working days.

  • Who shall be liable to obtain TIN (Tax Identification Number)

    Every person

    • Having turnover more than Rs 20, 00,000/- during the year or previous year within Delhi
    • Want to Sale or Purchase Goods to/from outside Delhi i.e. in the other state but within India
    • Causal Dealer (you make sales on an occasional basis e.g., during an exhibition or at the Trade Fair, you would need to apply for registration as a Casual Dealer.)
    • Sales under Hire-purchase agreement or lease of goods to someone else
    • Importing goods in the course of business from outside the territory of India.
    • Works contracts.
    • Every commission agent, broker, auctioneer or any other mercantile agent by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of his non-resident principal.
    • Having Turnover below Rs 20 Lakh can also apply for registration and obtain TIN Number
    • Banquet Hall, Club, Restaurant’s
    • Time limit for obtaining TIN: Within 30 day from date of liability to get registration arise i.e. Turnover exceeded Rs 20 Lakhs or wants to sale outside Delhi etc.
  • How to pay VAT Tax?

    VAT payments can be made at specified branches of designated banks. The list of designated banks can be obtained from the Central Excise or Sales Tax office.

  • When should VAT payments be deposited?

    VAT payments must be deposited by Proprietary Firms, LLPs and Partnership Firms quarterly. Other entities are required to make VAT payment monthly.

  • When should VAT Returns be filed?

    VAT returns are due on the 20th of every month. The previous months VAT information must be filed on the 20th of every month.

  • What type of registration DVAT registration?

    Two Types of DVAT registration

    Normal DVAT Registration: DVAT Composition Scheme:

    Delhi Value Added Tax or in short DVAT is a tax applicable on sale of goods within Delhi. Any person with turnover within Delhi exceeding Rs. 20,00,000 is required to be registered under DVAT and is liable to collect and pay DVAT tax to the Delhi Government. Further, any person purchasing or selling good from/to outside Delhi is also liable to be registered under DVAT in addition to registration under Central Sales Tax Act (CST).A person can also apply for voluntary DVAT registration with or without CST even if he is not required take compulsory registration.

    DVAT Composition scheme is a easy version of DVAT introduced with DVAT Act for easy compliance by small businessmen. This scheme is applicable to small dealers only i.e. dealers with turnover less than Rs. 40 Lakhs (Rs. 40,00,000). Further, the dealer should only Purchase or Sale goods within the state of Delhi only.

    Applicability of DVAT Composition Scheme

    • Turnover of Dealer should not exceed Rs. 40 Lakhs (Rs. 40,00,000)
    • The dealer should exclusively sell / purchase goods within the State of Delhi

    Terms & Conditions of DVAT Composition Scheme

    • The dealer can purchase goods only from other Registered Dealers within Delhi only after payment of full VAT
    • Composition Dealer cannot claim any credit of VAT paid on purchase of goods
    • Composition Dealer cannot charge VAT to its customers on the invoice
    • VAT liability of Composition Dealer shall be 1% of its total turnover.
  • What is the procedure for registration of VAT / CST? TIN

    Steps by Step Procedure for Registration Under The Delhi Vat Act-

    • First of all, the dealer has to go to the official website of Delhi VAT by using following domain, i.e. www.dvat.gov.in
    • Then click on the link of “New Registration” available on the left side of the page.
    • After that, the dealer have to submit some basic details for PAN verification from NSDL, such as, Name of the Firm/Company, Constitution, PAN, Aadhaar No. and Contact details online.
    • On successful PAN verification, the dealer will be provided Username and password through e-mail for further process.
    • The dealer would login and fills up registration forms, i.e., for Local “DVAT-04” & for Central “Form-A” in which dealer have to submit details as mentioned below: -
      • Address of principal place of business;
      • Any additional place of business;
      • Bank details;
      • Particulars of persons involved in the Firm/Company;
      • List of Goods to be dealt in along with goods required for packing; etc.
    • And upload supporting documents such as ownership proof/rent agreement/NOC of landlord/electricity bill/telephone bill, address proof, identification proof, etc.
    • The size of respective documents should be less than 100 KB each in the format of pdf/jpeg.
    • If the size of documents gets greater than 100 KB, then the dealer can use various softwares, such as, Microsoft Office picture manager, Photoshop, Coreldraw, etc. to reduce the size to 100 KB or less.
    • Then go to the link of submission to submit the registration application with VAT department.
    • After submitting, the dealer will receive one e-mail consisting of temporary TIN and password which can be used for further transactions.
    • The Court fee of Rs. 1,025/- (w.e.f. 17.6.2014) for new registration will be submitted online.
    • After the whole procedure is approved by the VATI, the dealer can take out the print of online generated Registration Certificate and need not to go to Trade & Taxes Department.
    • Documents to be given to Vat Inspector at the time of his visit.
      • Copy of DVAT-04 Application,
      • Copy of Challan,
      • Photocopy of PAN card of Proprietor / Company / Firm / LLP (Originals to be shown),
      • Photocopy of PAN card of all Director's / Partner's (Applicable in case of Companies / LLP) (Originals to be shown).
      • Photocopy of Address Proof (Voter id or Passport or Driving License or Aadhar of Proprietor / Director's / Partner's) (Originals to be shown).
      • Cancelled Cheque.
      • Photocopy of Electricity Bill along with Rent Agreement / NOC (Originals to be shown).
      • Photographs of Proprietor / Director's / Partner's.
  • What are the Penalties punishments under FCRA?

    To sum up the discussions: Violation of FCRA can attract severe penalties which could be as under :

    • Seizure and confiscation of foreign contribution receipts.
    • Fine upto 5 times the value of the foreign contribution spent.
    • Inspection and seizure of accounts and records.
    • Compulsory prior permission requirement even if the NGO is registered under FCRA.
    • Imprisonment upto 5 years and/or fine.
    • Prohibition on accepting foreign contribution for 3 years for persons convicted twice.

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