Delhi DVAT Registration | VAT Registration Online | DVAT Procedure

Delhi DVAT Registration

DVAT Registration in Delhi (TIN NO.)

Value Added Tax popularly known as VAT is paid by the customers to the government through seller of goods. Firstly, it is paid by the consumers to the seller of goods who then pay it to the state government. Any person having more than 20 lac Turnover or Receipt Per Annam from a sale of goods is liable to register under DVAT Registration for tax payment. It is important to note that VAT is a multistage tax that has to be paid at every stage of production of both goods and services, involving both sales and purchase.VAT is a regulatory compliance which every registered dealer making a turnover of more than 20 lac Per Annam, has to fulfill. In case total turnover or receipts are not more than INR 20 lac Per Annum, there is no mandatory requirement to apply for VAT registration, however, this exemption is only in case of local purchase and sales i.e. intrastate sale or purchase. In the case of interstate sale or purchase, there is no exemption limit so every dealer has to take Delhi VAT registration even if there is 1 Resale or purchase. Any dealer can voluntarily take Sale tax registration even if his total turnover does not exceed INR 20 lac.

Process of Delhi DVAT Registration Online 

  1. Step I – Create a user account on DVAT site
  2. Step II – Upload all the information in application form and filling of the form on DVAT portal
  3. Step III – PAN verification by Sales Tax department
  4. Step IV – Provisional TIN is allotted online
  5. Step V – VAT inspector’s visit on registered premises.
  6. Step VI – Issue of Original Registration Certificate which bears the TIN and Name of the Dealer.

Contact us for any Query




DVAT Implementation & VAT Ratings in India

VAT rate: 0% or NIL VAT

Items which are basic in nature or are in natural form are sold without any VAT on them. Items like khadi, salt, plastic or glass bangles, aids for handicapped etc. are exempted from VAT.

VAT rate: 1%

Goods which are expensive in nature are generally placed under the category of 1% VAT. Thus, items of jewelry like Gold, silver, jewels, stones etc. are charged with 1-2% VAT on them.

VAT rate: 4%-5%

Commonly used Goods as well as goods of essential nature like Kirana items, Tea, edible oil, coffee, agricultural equipment, medicines, drugs, intangible goods are levied with 4% or 5% of VAT.

General VAT rate:

Goods which don’t fall under any of the above categories come under this category. Delhi have a general rate of 12.5%, however, rates many vary from 12, 13-13.5%, 14-14.5%, 15% from state to state.

Inclusions in this package

Complete assistance in acquiring the VAT/CST registration certificate also known as TIN No.
Guidance and format for preparing Tax Invoice and Retail Invoice.
Guidelines about books to be maintained and due dates of compliance.

This is custom heading element

  • Provisional certificate takes 3-4 working days

  • Inspector visit can be expected in 15-20 working days, after form filling

  • The final certificate can be downloaded immediately after inspector visit.

Documents Required for Online DVAT Registration in Delhi

  • Copy of PAN card of Proprietor or Partnership firm or LLP or Pvt Ltd Company
  • Copy of PAN card of Partners or Directors
  • Copy of Aadhar card of proprietor, Partner or Directors
  • Copy of Address proof of all proprietor or partners or directors (Any one of Passport or Voter id or Aadhar card or Driving License)
  • Proof of Business premises where the company will be registered. (It can be from home also)
  • In the case of rented premises- Copy of rent agreement + Latest electricity bill in name of landlord + NOC.

  • In the case of owned premises- Copy of sale deed + Latest electricity bill in name of owner + NOC.
  • 4 Colored passport size photograph of proprietors, each Director, and Partners
  • Canceled cheque of any bank account (savings or current)
  • Mobile no., email ids of all Directors/Partners/Proprietors
  • Name of Company and list of goods in which company would be trading
  • In case of private limited company, copy of MOA, AOA, COI, Board resolution and list of Directors

Penalties under DVAT Act, 2004 -

There are a number of causes of penalties under various sections and sub-sections that are specified by the ‘Penalties under DVAT Act’ and the respective quantum is also specified. Noncompliance with the VAT policies and tax deficiency may lead to penalties. A few of them are mentioned below: A dealer claims Tax Credit for which he is not entitled or claimed greater tax credit than is allowed. Casual Dealer is not applied for Registration within a stipulated period.Falsely represent himself as a registered dealer Amount of tax wrongly collected or one lakh whichever is the greater. A person makes a statement to the Commissioner which is false, misleading or deceptive or omits from a statement without which the statement is false, misleading or deceptive.

Section Causes Quantum
86 ( 4 ) Fail to Apply Registration Rs.1000 per day maximum up to One Lakh
86 (13) Fails to prepare the prescribed or notified records and accounts; Fails to retain the prescribed or notified records at the principal place of business as recorded in his certificate of registration etc. The penalty a sum of fifty thousand or twenty percent of the tax deficiency if any whichever is greater.
86(20) A person makes a statement to the Commissioner which is false, misleading or deceptive or omits from a statement without which the statement is false, misleading or deceptive. Penalty rupees fifty thousand or the amount of tax deficiency whichever is greater.
86(21) Casual Dealer is not applied for Registration within a stipulated period. Penalty rupees five thousand per day subject to maximum up to rupees one lakh.
86(11) A dealer claims Tax Credit for which he is not entitled or claimed greater tax credit than is allowed. Amount equal to Tax Credit or ten thousand which is greater
86(7) Falsely represent himself as a registered dealer The amount of tax wrongly collected or one lakh whichever is the greater.
Falsely representing oneself as a registered dealer, knowingly keeping false records or not keep proper records of goods sold, issuing false invoices, bills; furnishing false returns etc. are all offense liable to imprisonment up to six months and also a fine.Under the Delhi VAT Act, 2004, offense may also lead to imprisonment.

Looking for best professional services at competitive price?

Why pay VAT when we pay Sales tax?

  • Sales tax is paid only once on the total value of goods and services purchased. VAT is a multistage tax paid at every step of production of goods and services.

  • It gives a tax benefit to the dealer on the VAT that has been paid by him on the purchase of the item. As a registered dealer can claim Input Credit for the VAT that he had paid during the purchase of goods with an objective to sell them in future.

  • A registered dealer has to file a Quarterly return to the VAT department. Also, the dealer is required to deposit the Net Output VAT liability on or before 21st of succeeding next month.

  • Yes. The VAT rates differ from state to state.

  • It gives a tax benefit to the dealer on the VAT that has been paod by him on purchase of item. As a registered dealer can claim Input Credit for the VAT that he had paid during purchase of goods with an objective to sell them in future.

  • Initially, when application for registration is filed online, we receive a provisional TIN no. Thereafter, VAT inspector makes inspection of business premises and issue report to jurisdictional VATO. After that, we can download or receive final registration certificate.

  • Input Credit is the benefit that a registered dealer can avail by reducing the Output Tax liability that has to be born due to sale of goods by the dealer by that amt.

  • Output Tax is the gross tax that has to be paid by dealer due on the sale of goods interstate/ intrastate.

  • It is a certificate which is a proof of registration under Sales Tax which holds the TIN No. and Name of the Dealer.

  • A registered dealer has to file a Quarterly return to the VAT department. Also, the dealer is required to deposit the Net Output VAT liability on or before 21st of succeeding next month.

  • In case the dealer was unable to pay the due tax liability on or before the said date, the interest @ 1.25% on the tax liability will be livable form the due date.

  • Name of Dealer (Individual/ Firm/ Company)
  • Name of Proprietor ( in case of Proprietorship Firm)
  • Registered Address where business has to be commence
  • List of items in which trading i.e. selling or purchasing is planned to be conducted.

  • A dealer can opt any of the method of payment, either online or offline. (it may be noted that the payment could be made only through DVAT portal of the concerned dealer).

Yes. As the use the same unique 11 digit registration number. Registering under VAT will be sufficient for CST or TIN as well.

A dealer can opt any of the methods of payment, either online or offline. (it may be noted that the payment could be made only through DVAT portal of the concerned dealer).

No. VAT is not levied on goods exported from the country. However, it is advised to the dealers to still have a VAT registration in order to claim refund of input taxes paid.

  • VAT registration (also known as Sales Tax Registration) is required for those dealers who deals in goods. It’s a tax charged on goods sold.

“The common question that gets asked in business is, 'why?' That's a good question, but an equally valid question is, 'why not?'“ Jeff Bezos

Give Review for our Service

Name
Email
Rating
Review Content