Delhi VAT Registration is also called DVAT Registration so today we explain you "How to Apply for Delhi VAT Registration in 2016" with the Latest Process. its also include cover the aspects of CST. Mostly VAT is required for any business which are selling goods in India even Online or Offline. VAT is the necessary part of any business. if we talk about ecommerce then its a very important for ecommerce business. Before Reading the below complete old procedure suggest you must Watch Below Video which gives you practical knowledge about How to apply for the Delhi VAT Registration.
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. 10,00,000 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.
There are two types of DVAT registration i.e.
DVAT Composition Scheme
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. The salient feature of DVAT Composition scheme is given below
Applicability of DVAT Composition Scheme
Terms & Conditions of DVAT Composition Scheme
DVAT Registration Procedure
1. Prepare documents required for DVAT registration
2. Arrange for DVAT Surety.
3. File From DVAT 4 along with all documents and surety with DVAT Department
4. If also require CST registration file Form A along with DVAT 4
5. Get DVAT Registration Certificate along with TIN Number
6. Vat Inspector will visit your business premises within 15 days of TIN Registration.
DVAT Registration Documents
The documents required for DVAT Registration are different depending on the constitution of the dealer i.e. weather the dealer is a Proprietorship, Partnership, Company or any other organisation. The documents required for DVAT registration for each different type of organisation structure is given below. Any documents required for reduction of DVAT Surety is to be given in addition to the documents mentioned below.
For DVAT registration it is compulsory to provide surety of Maximum Rs. 1,00,000 and Minimum Rs. 50,000 to the DVAT Department. The surety can be provided in various modes which are provided below, however, the more popular modes are either in way of Registered Dealer Surety i.e. where another registered dealer provides surety bond or Bank Guarantee. The method of determination of surety is also provided below.
Modes of Providing DVAT Surety
Determination of DVAT Surety Amount
The Surety for DVAT registration has been prescribed at Rs. 1,00,000. However, the same can be reduced to a minimum of Rs. 50,000 by providing the documents mentioned below. The amount of surety reduced is also mentioned against each document.
Reduction sought (Maximum reduction available Rs. 50,000)