Attention to all Delhi based businessmen! A must read article about Delhi VAT Registration, VAT Tax Rates and VAT Return Filing.

If you are a Delhi based entrepreneur you really need to know about all three of the terms mentioned above. All the three, Delhi VAT Registration, VAT Tax Rates and VAT Return Filing and VAT Payments are placed under the Delhi Value Added Tax Act, 2004.

Since every Indian state has its own VAT Act which it abides by, the VAT Regulations and Procedure of Delhi is in the hands of Delhi Value Added Tax Act, 2004.

This article is created especially for all the Delhi based entrepreneurs who need to be well aware about the procedure of DVAT Registration, DVAT Tax Rates and DVAT Return Filing.

DVAT Registration

DVAT, also known as Delhi Value Added Tax is the kind of tax applicable on sale of goods within Delhi exclusively. Every entrepreneur in Delhi whose turnover crosses Rs. 10,00,000 has to get registered under the DVAT. The person then is liable to collect and pay DVAT tax to the Delhi Government. In addition to all this, registering under DVAT is also mandatory for anyone purchasing goods from Delhi or selling to Delhi, as per Central Sales Tax Act (CST).

After the successful submission of the application for DVAT registration, a temporary TIN and password which may be used for further transactions.

Delhi VAT Tax Rates

The VAT Tax Rates In Delhi are divided into seven different categories depending upon the type of goods. DVAT Tax Rate schedule is created to determine which category out of seven, a particular good belongs to, along with the VAT tax rate associated with that category.

The ScheduleI is for the goods which are exempted from charging VAT.

For Example: Books, Charcoal, Fresh Vegetables, Meat, etc.

The Schedule II contains the goods that are charged with 1% VAT Tax

For Example: Precious Metals, Precious Stones, etc.

Schedule no. III has goods with 5% VAT Tax.

Example: Communication equipment, bricks, utensils, coffee seeds, computers, etc.

Schedule IV includes goods that are charged 20% VAT Tax.

Example: Liquor, Lottery Tickets, Aerated Drinks, etc.

In order to find complete detail about DVAT rate, in elaborate form, kindly visit the website of Department of Trade & Taxes created by Government of N.C.T. of Delhi.

DVAT Return Filing

If you are an entrepreneur in Delhi, it is mandatory for you to file DVAT Return every three months. The 25th of the ending month of each quarter is the last date e-filing and for manual filing, the 28th day of the same is considered last for DVAT Return filing. If you wish to file DVAT Return online, the website www.delhi.gov.in. may be used.

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