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is dvat registration required

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one of the client in delhi is purchasing garment from mumabi and selling in haryana. i want to ask whether the client is required to register under DVAT. he is purchasing & selling the garments without making any  value additions in them.

Replies (6)

Ofcourse the dealer is liable to get registration in DVAT as well as CST.

Its depend on turnover limit for registration of Dvat.

Please refer section 16A (7) , 18 (2) of the DVAT Act ....

Please refer section 16A (7) , 18 (2) of the DVAT Act ....

3 Registration under DVAT Act

3.1Compulsory, if:-

Yourturnover in the current year exceeds Rs. 10 lakhs (manufacturer,traders, works contractor, hire-purchase business etc.) ; or
You make any interstate sale; or
You make interstate purchases for resale in Delhi
You can also apply voluntarily for registration even if your turnover is below Rs. 10 lakhs.
A single registration is enough for having more than one place of business in Delhi.

3.2 How to Register?

Applyin Form DVAT 04 with the prescribed fee of Rs. 500/- and a security ofRs. 1 lakh. Fee is payable in the form of court fee stamp. ForRegistration under the Central Act, the fee is Rs. 25/-.
Thesecurity amount can be reduced by a maximum of Rs. 50,000/- if you canprovide certain documents with your registration application. Thesecurity amount is reduced to the extent of amount mentioned againsteach head allowed for various documents is as follows:-
Last paid electricity bill in your name, Rs. 10,000/-.
Paid telephone bill in your name Rs. 5000/-
Income Tax PAN, Rs. 10,000/-
A document as proof of ownership of principal place of business, Rs. 30,000/-
A document as proof of ownership of residential property, Rs. 20,000/- and
A notarized photocopy of the passport of proprietor/managing partner or managing director-Rs. 10,000/-.

Remainingsecurity may be in form of Bank Guarantee, Post Office cashcertificates, bonds, debentures, dealers surety or mortgage ofimmovable properly.
You are automatically registered within 15 daysof making your application and a Tax payer Identification Number (TIN)will be issued, to you. This TIN will be common for both DVAT as wellas CST Act.
However, your applications may be rejected for certain reasons which will be communicated to you.

Resp. Ram Avtar sir,

i want to know that the security in the form of surety is sufficent for cst registration which is used for the registration for dvat  otherwise  both fresh surety bond require for both registration CST/DVAT. pPlz, Help me


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