Delhi Value Added Tax - Message form the Commissioner
November, 01st 2010
Message form the Commissioner
This guide is intended to explain how the Delhi Value Added Tax (DVAT) system works, and what you need to do when you have registered for the new tax.
We have written this guide especially for small businesses and organizations that have to charge DVAT and need information about how to do this. I hope that you will find it useful. It's designed to help you to:
Understand your rights and responsibilities as a taxpayer;
Make correct tax returns and payments;
Obtain your tax credits and refunds as quickly as possible; and
Avoid incurring interest and penalties.
When the guide refers to "you", we mean you as a business entity.
Where the guide refers to "we", "Commissioner", "Department" it means the authorities responsible for the administration of DVAT.
In certain parts we have also made passing references to your liability under the Central Sales Tax Act, 1956 ("the CST Act"). However, please remember that this is not a comprehensive guide to determine your liabilities under the CST Act.
The information in the guide may not always cover the facts relevant to your particular case or apply fully to your circumstances. We advise you to review the DVAT Act and the rules to determine the application of tax to your transactions and activities. The guide also reflects amendments to the DVAT Act and rules that have been proposed by the government.
You can always get further help by contacting us, as described on the last page of this guide.
Commissioner of Delhi Value Added Tax Government of the National Capital Territory of Delhi
Note: The information in this guide is current at February 2005
Message From the Commissioner
Part 1 - How DVAT Works
What is DVAT? 5 DVAT Mechanism
What Happens to CST?
Who is Covered Under the DVAT System?
What Do You Need to Do Once Registered?
How Are You Assessed?
Do You Still Need to Collect and Issue Declaration Forms Under DVAT Act?
Other Things You Should Know
Part 2 - Registration
Who Should Register?
Registration for Dealers Already Registered Under DST/CST
How to Register?
When Will You be Registered
Rights & Responsibilities as a Registered Dealer
Credit for Stock Brought Forward During Transition
Amendment/Cancellation of Registration Certificate
De-Registration 11 Registration of a Casual Dealer
Consequences of Registration as a Casual Dealer
Part 3- Calculation of Taxes
Types of Sales
What Input Tax Credits Can You Claim:
Adjustments to Tax Credits
Refund or Carry Forward of Excess Tax Credits
Rates of Tax 16 Packing Materials and Containers
Other Rules for Calculating the Tax
Sale Price and Taxable Turnover
Time of Sale and Purchase
Part 4- Books and Records
What Should a Tax Invoice Contain
Duplicate and Proforma Tax Invoices
Credit and Debit Notes
Part 5 - Payment of Taxes and Submission of Returns
When to Pay Your Taxes
How and Where to Pay Your Taxes
What if You Delay in Making the Payments
How is Interest Calculated?
When Should You File Your Return
When to Submit Your CST Returns
Annual Reconciliation Statement
Part 6 - Refunds and Adjustments
When Can Your Refund be Withheld?
Interest on Refunds
Manner in Which a Claim of Refund is to be Made
Security for Cash Refund
Adjustment to Tax When There is a Change in the Nature of the Sale
Adjustment to Tax for Goods Used for Mixed Purposes
Adjustments to Tax Credit
Adjustment to Tax Credit Due to a Change in Price
Adjustment to Tax Credit for Change of Use
Adjustment for Bad Debts
Part 7 - Assessment and Audit
When are You Assessed
Assessment of CST
Limitation on Assessment and Re-assessment
Interest on Additional Tax Owed
Part 8 - Border Controls and Checkposts
Entry of Goods in Delhi
Refusal of Entry of Goods
Removal of Goods
Custody, Return and Disposal of Goods Seized
Part 9 - Special Transactions
Tax Deductions at Source
Composition Scheme for Specified Dealers
Tax Payable Under Composition Scheme
Tax on Opening Stock .
Part 10 - Transitional Provisions
Registration During Transition
Transitional Credit on Opening Stock Held on April 1, 2005