Delhi Commercial Tax
Delhi VAT registration is administered by the Delhi commercial tax department. All the dealers involved in the sales of goods are liable to get VAT registration under specified conditions. This post discusses Delhi VAT rates, forms, return filing, and DVAT registration in details. VAT rules and regulations are under the purview of state governments. Each state in India is allowed to enact VAT act for its state. The rules of delhi commercial tax are same as other commercial taxes.
The rules are though based on the guidelines of the uniform VAT law across the country. Our blog is a dedicated portal to guide taxpayers for online tax payment. We are providing information on income tax, TDS, and value added tax for each state.
The value added tax is the prominent commercial tax. Dealers involved in manufacturing or sale and purchase of goods should get VAT registration. Almost all the procedures related to the commercial taxes are now made digital. Dealers can apply for Delhi VAT registration online. The official portal of Delhi commercial tax department dvat.gov.in also allows filing grievances online.
Thousands of dealers are now filing for return and making tax payments online on this portal. If you are looking for information on value added tax rules of other states, you don’t need to go elsewhere. We have posted information on Gujarat commercial tax department, Bihar VAT and West Bengal commercial tax. as well.
Delhi VAT Registration Online
If you are a new dealer wanting to get registered under VAT, here is the online procedure and know about Delhi commercial tax. It is mandatory for the dealers to register if the turnover is or above Rs. 20 lakhs in the financial year.
Step I – PAN Verification and Registration
- Click here and access the official site of Delhi commercial tax department.
- At the left-hand side corner, you will see an icon for ‘New Registration’.
- Click the New Registration option. You will see a form on the screen.
- Fill up the form for ‘Request for Registration.’
- Once you fill-up the form and submit it online, you should wait for a response from DVAT helpdesk.
- After your PAN verification, you will receive two mail. The first mail will give you the status of PAN verification.
- The later one will give you your unique login id and password.
Step II – Fill up and Submit Registration Form
- Visit the official homepage of Delhi commercial tax again.
- Click on the Dealer under Login menu using the credentials provided by mail.
- Use the reference number as user ID and password as provided.
- You may change the password now after your first login. You will also create an approval password here. It will help you to change your profile settings in future.
- Now start filling up the registration form.
- If you wish to register only for VAT, fill up the Form DVAT-04.
- Upload the scanned documents as required.
- Choose the payment mode either offline or online.
- After payment (if online), Go to Approval and submit the form.
- You will receive the TIN number after your registration is approved.
Delhi VAT registration is available under any of the two schemes. The composition scheme allows dealers to pay VAT at flat 1%. No benefit for input taxes paid will be available. Under the normal scheme, the dealer will be paying VAT at the prescribed rate as per the schedule of the product. Benefit for the input taxes paid can be claimed under this scheme.
Delhi VAT Rates and Schedules
The Delhi commercial tax department has scheduled the products under seven categories. The schedule under which the product falls determines the DVAT rate. Find the rates and schedules as specified by Delhi commercial tax department.
- Schedule I – Nil VAT (VAT-exempted products) – The schedule contains all the products which are exempted from tax. Main products in the schedule are all agricultural products or fresh fruits and vegetables. Also includes books, charcoal, and other essential products.
- Schedule II – 1% – Products under schedule II include all precious metals and gemstones as well jewelleries produced out of them.
- Schedule III – 5% – The third schedule wherein products are taxed at 5% DVAT include computers, communication equipment, bricks, utensils etc.)
- Schedule IV – 20% – Products like liquor, aerated drinks, lottery tickets and pan masala attract higher tax.
- Schedule V – The schedule fifth specifies a list of dealers who is exempted from VAT on the sale of goods. Under specified conditions, the sale of goods by the Canteen Stores Department to the Regiment or to the members of the Armed forces are exempted.
- Schedule VI – The sixth schedule of DVAT contain the list of organization which are exempted from VAT on the purchase of goods. It mainly include the foreign embassies and consulates and other international organizations.
- Schedule VII – Non-creditable goods as listed. Mainly include construction equipment and elevators not meant for re-sale.
For more information on DVAT, you may refer to the Delhi commercial tax portal. Dealers also need to fill the VAT return by 25th of the end of the quarter. The online e-filling is available on the same portal. Login at the dealer section and upload the VAT returns online.
If you are filing VAT return manually, the due date is the 28th of the month after the completion of the quarter. Similarly, dealers can also pay VAT online on or before the 21st of the following month. Also you can check your CIBIL score online. Online as well offline facility are available for payment of Delhi commercial taxes through designated nationalized banks.