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DVAT Registration procedure Simplified-CS Kundan Mishra

Delhi Value Added Tax Act, 2004, (hereinafter called DVAT Act)  is a multi-stage tax on sale of goods, work contract, lease and hire purchase in Delhi.  Delhi Value Added Tax Act, 2004 replaced four statutes: Delhi Sales Tax Act, 1975, Delhi Sales Tax on Works Contract Act, 1999, Delhi Tax on Entry of Motor Vehicles into Local Areas Act, 1994 and Right to Use Goods Act, 2002.

DVAT Act was passed by the Legislative Assembly of the National Capital Territory of Delhi on the 22nd December 2004 and received the assent of the President of India on 15th February 2005

The Act has come into force with effect from 1st April 2005 vide Notification No.

F.101(318)/2005-Fin.(A/Cs)(i)/8581, dated 30th March 2005.

Rates of tax under DVAT Act

The DVAT Act prescribes the following rates of tax on different types of goods:

1. 1% Rate: Goods listed in the Second Schedule

2. 5% Rate: Goods listed in the Third Schedule and the printing works contracts.

3. 20% Rate: Goods listed in the Fourth Schedule.

4.12.5% Rate: Goods involved in the execution of works contracts except printing works contract.

5. 12.5% Rate: Any goods not mentioned in the Second, Third and Fourth Schedules or in the First Schedule (exempted goods)

Type of Registration under Delhi Value Added Tax Act, 2004

1. Mandatory registration

As per section 18 of DVAT Act,  every dealer is required to apply for registration under this Act if the dealer’s turnover in the current year exceeds twenty lakh rupees or the dealer is liable to pay tax, or is registered or required to be registered under Central Sales Tax Act, 1956.

2. Voluntary registration

Any person who is not required to get registered, but intends from a particular date to undertake activities which would make him a dealer may apply for voluntary registration under DVAT Act.

A dealer who is required to apply for registration under section 18 shall make an application for registration to the Commissioner in Form DVAT-04 within a period of 30 days from the date of his becoming liable to pay tax under the Act.

3. Procedure for Registration:

i. Dealer to intimate PAN and brief particulars including email, mobile phone etc., on line to begin with.

ii. PAN shall be verified from Income Tax data base maintained by NSDL. The process will be streamlined further and PAN verification would be done on real time basis shortly.

iii. On successful PAN verification, user ID and password would be communicated to the registrant on the same day.

iv. Dealer can file registration application under DVAT and/ or CST, as the case may be, and deposit fee of Rs. 1025 online.

v. Scanned requisite documents are required to be uploaded with the application online.

vi. Registration number/TIN would be generated on submission of application. Registration Certificate would be made available in the login of dealer on the same day. It would be a Provisional Registration till physical verification is made.

vii. The application(s) would be made available in the login of concerned ward. VATO who will examine the application documents and get the physical verification done through ward VATI within 7 days.

viii. On satisfactory inspection and due verification of requisite documents, signed copy of the RC would be dispatched to the dealer by post.

ix. In case of adverse report, show cause notice in form DVAT-10 would be issued and disposed of.

x. In the aforesaid process, Registration number/TIN would be issued within a day to the dealer pending physical verification. Registration Certificate (RC) which would be provisional would also be made available in the login of the dealer.

4. Documents required In case of Proprietorship firm:

a. Aadhar Card and pan card of Proprietor-Self Attested

b. Duly certified copy of registration certificate (if any)

c. Copy of proof of Address of Proprietor – Self Attested

d. 2 passport size photograph of Proprietor

5.  Bank Account Details of the firm (Cancelled Cheque)

6. Registered Office Address Proof

- If Rented: Rent Agreement and utility bill likely electricity bill, telephone bill, etc & No Objection Certificate from land owner.

- If Owned: Ownership proof. Receipt of Municipality tax paid.

7. Rubber Stamp.

8. Mail id and Mobile number of  firm.

9. List of main Items of Business

10. Description of top 5 items the firm want to deal

11. Copy of Purchase and Sales Bill (if transaction is done).

12. Details and proof of Number of additional places of business within or outside the state

13. Expected turnover in coming year.

Documents required  in case of Partnership Firm:

1. PAN card of the Firm and the Partners

2. Partnership Deed.

3. Address Proof of Partners.(Voter ID, Passport, Driving License)

4. Aadhar Card / UID application slip of Partners. ( Mandatory)

5.Bank Account Details of the firm (Cancelled Cheque)

6. Registered Office Address Proof

- If Rented: Rent Agreement and utility bill likely electricity bill, telephone bill, etc & No Objection Certificate from land owner.

- If Owned: Ownership proof. Receipt of Municipality tax paid.

7.2 passport size photograph of all the partners.

8. Rubber Stamp.

9. Mail id and Mobile number.

10. List of main Items of Business

11. Description of top 5 items the firm want to deal

12. Copy of Purchase and Sales Bill (if transaction is done).

13. Details and proof of Number of additional places of business within or outside the state.

14. Expected turnover in coming year.

Documents required In case of Private Limited Company.:

1. Duly certified copy of registration certificate & Memorandum & Articles.

2. Copy of PAN card, Aadhar Card & address proof of authorized signatory –  Self Attested Copy of  PAN card of Company

3. Board Resolution and Power of Attorney in favour of person signature the form (if other than Director)

4. 2 passport size photograph of Authorised Signatory

5.  Bank Account Details of the Company(Cancelled Cheque)

6. Registered Office Address Proof

- If Rented: Rent Agreement and utility bill likely electricity bill, telephone bill, etc & No Objection Certificate from land owner.

- If Owned: Ownership proof. Receipt of Municipality tax paid.

7. Two passport size photograph of all directors.

8. Copy of PAN Card and & One address proof of all directors.

9. List of Director’s / Share Holders

10. Mail id and Mobile number of Company.

11. List of main Items of Business

12. Description of top 5 items the firm want to deal

13. Copy of Purchase and Sales Bill (if transaction is done).

14. Details and proof of Number of additional places of business within or outside the state

15. Expected turnover in coming year.

Source: DVAT Act and Rules.

Disclaimer: Statements and opinions expressed in articles are those of the author’s personal views. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. Readers are advised to refer relevant provision of law before applying or accepting any of the point mentioned above. Author accepts no responsibility whatsoever and will not be liable for any losses, claims or damages which may arise because of the contents of this write up

The Author is an Associate Member of the Institute of Company Secretaries of India.

KUNDAN KUMAR MISHRA

Practicing Company Secretary

New Delhi

cskundanmishra@gmail.com.

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