Registration under dvat for gold dealers.
This query is : Resolved
24 March 2014
Dear Experts,
I want to start dealing as dealers for gold & silver bullion in Delhi.
I have some stock with me to start. Is it necessary to register first under DVAT to do any sale or could I just sell the bullion as a unregistered dealer without collecting any VAT over the sale, till i reach the taxable quantum. And registering under DVAT.
I want to start dealing as dealers for gold & silver bullion in Delhi.
I have some stock with me to start. Is it necessary to register first under DVAT to do any sale or could I just sell the bullion as a unregistered dealer without collecting any VAT over the sale, till i reach the taxable quantum. And registering under DVAT.
25 March 2014
Any experts there.. Please Help..
20 July 2025
Hey! Here's what you need to know about DVAT registration for gold dealers in Delhi:
Is DVAT registration mandatory before starting sales?
If your annual turnover exceeds the threshold limit (usually ₹10 lakh for Delhi), you must register under DVAT before making sales.
If your turnover is below ₹10 lakh, you are considered an unregistered dealer and not required to register or collect VAT.
But if you intend to cross that limit, it’s better to get registered proactively to avoid penalties.
Can you sell without registering?
Yes, as a small dealer below the threshold, you can sell without VAT registration and not charge VAT.
However, once you cross the threshold, you must register immediately and start charging VAT on sales.
For gold and silver bullion:
The sale of gold and silver bullion is taxable under DVAT.
VAT rates apply as per the latest DVAT rules (often 1% to 3% on bullion, but check the current rate).
Summary:
If your turnover is less than ₹10 lakh, no need to register or charge VAT.
Once turnover crosses ₹10 lakh, you must get registered under DVAT.
Selling unregistered beyond threshold attracts penalties.
Is DVAT registration mandatory before starting sales?
If your annual turnover exceeds the threshold limit (usually ₹10 lakh for Delhi), you must register under DVAT before making sales.
If your turnover is below ₹10 lakh, you are considered an unregistered dealer and not required to register or collect VAT.
But if you intend to cross that limit, it’s better to get registered proactively to avoid penalties.
Can you sell without registering?
Yes, as a small dealer below the threshold, you can sell without VAT registration and not charge VAT.
However, once you cross the threshold, you must register immediately and start charging VAT on sales.
For gold and silver bullion:
The sale of gold and silver bullion is taxable under DVAT.
VAT rates apply as per the latest DVAT rules (often 1% to 3% on bullion, but check the current rate).
Summary:
If your turnover is less than ₹10 lakh, no need to register or charge VAT.
Once turnover crosses ₹10 lakh, you must get registered under DVAT.
Selling unregistered beyond threshold attracts penalties.
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