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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.
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.
Company / Partnership Firm / LLP
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
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
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
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)
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
Terms & Conditions of DVAT Composition Scheme
What is the procedure for registration of VAT / CST? TIN
What are the Penalties punishments under FCRA?
To sum up the discussions: Violation of FCRA can attract severe penalties which could be as under :
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