Saitaxonline.in Guide to Vat Registration

12th May
2016

Saitaxonline.in guide to Vat Registration explain the whole process of Vat Registration. Delhi VAT Registration is also called DVAT Registration so today Saitaxonline.in explain you “How to Apply for Delhi VAT Registration in 2015” .  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.

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. 20,00,000 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.

1. Normal DVAT Registration

2.Registration under DVAT Composition Scheme

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. 50 Lakhs (Rs. 50,00,000). 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

Turnover of Dealer should not exceed Rs. 50 Lakhs (Rs. 50,00,000)
The dealer should exclusively sell / purchase goods within the State of Delhi
Terms & Conditions of DVAT Composition Scheme
The dealer can purchase goods only from other Registered Dealers within Delhi only after payment of full VAT
Composition Dealer cannot claim any credit of VAT paid on purchase of goods
Composition Dealer cannot charge VAT to its customers on the invoice
VAT liability of Composition Dealer shall be 1% of its total turnover

Saitaxonline.in Guide to Vat Registration

Saitaxonline.in Guide to Vat Registration explians further the  step by step process DVAT Registration

1. Dealer to intimate PAN and brief particulars including email, mobile phone etc., on line to begin with.

2. PAN shall be verified from Income Tax data base maintained by NSDL. The process will be streamlined further and PAN verification would be done on real time basis shortly.

3. On successful PAN verification, user ID and password would be communicated to the registrant on the same day on their email id.

4. Dealer can file registration application under DVAT and/ or CST, as the case may be, and deposit fee of Rs. 1025 online.

5. Scanned requisite documents are required to be uploaded with the application online.

6. Registration number/TIN would be generated on submission of application. Registration Certificate would be made available in the login of dealer on the same day. It would be a Provisional Registration till physical verification is made.

7. The application(s) would be made available in the login of concerned ward. VATO who will examine the application documents and get the physical verification done through ward VATI within 7 days.

8. On satisfactory inspection and due verification of requisite documents, signed copy of the RC would be dispatched to the dealer by post.

9. In case of adverse report, show cause notice in form DVAT-10 would be issued and disposed of.

10. In the aforesaid process, Registration number/TIN would be issued within a day to the dealer pending physical verification. Registration Certificate (RC) which would be provisional would also be made available in the login of the dealer.

Saitaxonline.in Guide to Vat Registration explians further explain the documents required  in case of Proprietorship firm :

  1. Aadhar Card and pan card of Proprietor-Self Attested
  2. Duly certified copy of registration certificate (if any)
  3. Copy of proof of Address of Proprietor – Self Attested
  4. Passport size photograph of Proprietor
  5. Bank Account Details of the firm (Cancelled Cheque)
  6. Registered Office Address Proof ie electricity bills
  7. If Rented: Rent Agreement and utility bill likely electricity bill, telephone bill, etc & No Objection Certificate from land owner.
    If Owned: Ownership proof. Receipt of Municipality tax paid.
    Rubber Stamp.

8. Mail id and Mobile number of firm.

9. List of main Items of Business

10. Description of top 5 items the firm want to deal

11. Copy of Purchase and Sales Bill (if transaction is done).

12. Details and proof of Number of additional places of business within or outside the state

13. Expected turnover in coming year.

Saitaxonline.in Guide to Vat Registration explians further explain the documents required Documents required in case of Partnership Firm

1. PAN card of the Firm and the Partners

2. Partnership Deed.

3. Address Proof of Partners.(Voter ID, Passport, Driving License)

4. Aadhar Card / UID application slip of Partners. ( Mandatory)

5. Bank Account Details of the firm (Cancelled Cheque)

6. Registered Office Address Proof

If Rented: Rent Agreement and utility bill likely electricity bill, telephone bill, etc & No Objection Certificate from land owner.
If Owned: Ownership proof. Receipt of Municipality tax paid.
7. 2 passport size photograph of all the partners.

8. Rubber Stamp.

9. Mail id and Mobile number.

10. List of main Items of Business

11. Description of top 5 items the firm want to deal

12. Copy of Purchase and Sales Bill (if transaction is done).

13. Details and proof of Number of additional places of business within or outside the state.

14. Expected turnover in coming year.

Saitaxonline.in Guide to Vat Registration explians further explain the documents required Documents required in case of Private Limited Company.:

1. Duly certified copy of registration certificate & Memorandum & Articles.

2. Copy of PAN card, Aadhar Card & address proof of authorized signatory – Self Attested Copy of PAN card of Company

3. Board Resolution and Power of Attorney in favour of person signature the form (if other than Director)

4. 2 passport size photograph of Authorised Signatory

5. Bank Account Details of the Company(Cancelled Cheque)

6. Registered Office Address Proof

If Rented: Rent Agreement and utility bill likely electricity bill, telephone bill, etc & No Objection Certificate from land owner.
if Owned: Ownership proof. Receipt of Municipality tax paid.
7. Two passport size photograph of all directors.

8. Copy of PAN Card and & One address proof of all directors.

9. List of Director’s / Share Holders

10. Mail id and Mobile number of Company.

11. List of main Items of Business

12. Description of top 5 items the firm want to deal

13. Copy of Purchase and Sales Bill (if transaction is done).

14. Details and proof of Number of additional places of business within or outside the state

15. Expected turnover in coming year.

In case if you feel any problem in understanding the Vat Registration Process through Saitaxonline.in Guide to Vat Registration then feel free to visit our site and raise your request. we will respond you accordingly.