Amendments in DVAT

Only Quarterly Return Period to be in place:-With effect from 01.04.2013, all the dealers shall have a “Quarterly” return period. Hence, Monthly returns shall not be applicable in future.

Tax is to be paid on monthly basis: - Now, the entire Vat (Net Tax Payable) pertains to a month is payable by 21^st of successive month.

Additional Registers to be maintained by Dealers:-The dealers are required to maintain the sales and purchase bill details in DVAT-30 / Dvat-31 respectively. Now, hence forth, the dealers shall additionally needs to maintain details of Credit Notes and Debit Notes relating to Purchases in Form DVAT-30A and the details of Credit Notes and Debit Notes relating to Sales in Form DVAT-31A

Additional Information to be filled with Department :-Intimation of Import/Export code number is to be made to Department vide Form DVAT-52

Registration Threshold limit: Dealers not making any Central Sales and Central purchase and engaging only in local sale / purchase can transact the business without obtaining Vat registration till turnover in current year or in the previous year doesn’t exceeds Rs.20 Lacs. Earlier the limit was Rs.10 Lacs

Applicability of Form T-2:- Wherever any goods are going to enter the state of Delhi by the dealer having turnover exceeding Rs.10 Crore, prior intimation by dealer to Vat department is required to be made vide form T-2 form. The dealer shall take the printout of electronic form generated, which needs to be accompanied with goods while entering the state of Delhi. It had further been provided that wherever, at the time of delivering goods to transporter, the vehicle number is not available, the Form T-2 can be uploaded without vehicle number details. The vehicle number details, in such case, needs to be updated, within 24 hours of receipts of goods by dealer in Delhi. The dealer has been debarred from disposing off/selling the goods till vehicle number have been updated in form T-2 electronically.

Obligations for Tax Deductor

Tax Deductor, deducting TDS on Work Contract shall be liable to issue TDS Certificate in Form DVAT-43 in quarter-duplicate i.e, Two copies shall be issued to Deductee (Contractor), One copy shall be annexed to TDS Return by Deductor, One copy shall be retained by Deductor himself.

Deductor shall deposit the Tax deducted vide Challan No DVAT-20 within 15 days following the month in which deduction had been made.

TDS Certificate in Form DVAt-43 shall be issued within 7 days from the date of deposit of Tax.

Rate of TDS deduction for payment to Contractor/Sub Contractor not registered with Vat Department shall be 6%

Valuation of Sale Price for selling Importer Goods :- Wherever, Dealer makes sale of imported goods in Delhi, the sale price on which Vat is chargeable, shall be Actual Selling price or the Value determined by Custom Authorities  for payment of Custom  duty , at the time of goods , whichever is higher.

Input credit on Capital Goods :- Till now , the dealers were eligible to claim input credit on purchase of Capital goods in three installments i.e., 1/3^rd in Current Year, 1/3^rd in subsequent year and balance 1/3 in next subsequent year. However, for 1^st & 2^nd year, no quarter/Month period was prescribed during which input was to be claimed. Now it has been specified that credit can be taken in the same corresponding tax period in subsequent year, corresponding to the tax period in which capital gods was purchased.

Input credit on goods to be used for transfer of right to use: shall be allowed as :-a) 1/4^th in the same tax period, b) Balance 3/4^th in equal proportion, in corresponding tax period, in three successive financial Year.

Penalty for not filling the Audited Balance sheet:-, by the dealers having turnover exceeding Rs.1 Crore, shall be Rs.1, 00,000/- or 1% of Turnover, whichever is less. Earlier the same penalty was Rs.10,000/-

Penalty waiver in case of search:-Wherever, any penalty is livable u/s 86 of the DVAT Act, 2005, and the dealer discloses the fact of tax deficiency voluntarily, during the course of search and the dealer deposited tax within 3 working day of conclusion of proceedings, penalty livable shall be reduced by 80%.

This article is written by CMA Samir Biswal. He can be reached at cmasamirbiswal@gmail.com

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