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FINANCIAL & TAXATION  SERVICES

• Tax Planning & Consultancy
• Income Tax Returns, Assessment, Refunds, Appeals, PAN
• TDS Returns, Outsourcing of TDS Records, Returns and compliances
• Transfer pricing audit and Form 3CEB preparation & filing.
• WCT Registration, Returns, Assessment & Appeals
• Systems Evaluation & Development
• Service Tax Registration, Returns, Assessment & Appeals
• Sales Tax Registration, Returns, Assessment & Appeals

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FINANCIAL & TAXATION SERVICES

• Tax Planning & Consultancy
• Income Tax Returns, Assessment, Refunds, Appeals, PAN
• TDS Returns, Outsourcing of TDS Records, Returns and compliances
• Transfer pricing audit and Form 3CEB preparation & filing.
• WCT Registration, Returns, Assessment & Appeals
• Systems Evaluation & Development
• Service Tax Registration, Returns, Assessment & Appeals
• Sales Tax Registration, Returns, Assessment & Appeals

clickforDVATmatters: LOCAL SURETY BOND

clickforDVATmatters: LOCAL SURETY BOND: "KNOW ALL MEN BY THESE PRESENTS THAT M/S ____________________ ____________________ is held and firmly bound upto the President of India (h..."

clickforDVATmatters: Value Added tax hereby make it mandatory for the c...

clickforDVATmatters: Value Added tax hereby make it mandatory for the c...: "F.7(7)POLICY-III/VAT/2005-06/662 ..."

Procedure for registration under DVAT Act.

An application for registration under DVAT Act is to be made in form DVAT 04. The application should be accompanied by the following supporting documents :

Mandatory supporting documents

(a)	Annexures of the Form duly filled in (in case any of the annexures is not applicable, same may be mentioned)
(b)	Proof of incorporation of the applicant dealer i.e. Copy of deed of constitution (partnership deed (if any), certificate of registration under the Societies Act, Trust Deed, Memorandum and Articles of Association etc.) duly certified by the authorized signatory.
(c)	Proof of identity of authorized signatory signing the Registration Application Form.
(d)	Two self addressed envelopes (without stamps)
(e)	In case of a dealer applying for registration and simultaneously opting for payment of tax under composition scheme, please attach application in Form DVAT 01 along with this application.
(f)	Proof of Security
Optional Supporting Documents
(a)	Proof of ownership of principle place of business.
(b)	Proof of ownership of residential property by proprietor/managing partner.
(c)	Copy of passport of proprietor/managing partner.
(d)	Copy of Permanent Account Number in the name of business allotted by the Income Tax Department.
(e)	Copy of last electricity bill (The bill should be in the name of business and for the address specified as the main place of business in the registration form)
(f)	Copy of last telephone bill (The bill should be in the name of business and for the address specified as the main place of business in the registration form)

2.

The official receiving the application should scrutinize the application for completeness and tick the cover page of the DVAT 04 regarding the supporting documents submitted by the applicant. The supporting documents should be self-attested by the applicant.

3.

The official should mention the Ward No. on the cover page at the time of receiving application to facilitate the transfer of the registration application to appropriate authority.

4.

Since the process of registration is time bound, the official receiving the application and other concerned officers of the Front Office should ensure that there is no delay in sending the application to the concerned authority for appropriate action. All applications should be sent on the same day & in rare cases by the morning of next working day. The dispatch register shall show the date and time at which the registration was received in the ward.

5.

Since the security amount need to be calculated by the applicant, the official receiving the application should ensure that proper supporting documents with regard to reduction in the security amount are enclosed with the application and the security in the prescribed forms are enclosed in original, as per the statement of the dealer in field NO. 18 of Part A of DVAT 04.

6. It may also need to be checked whether the applicant has enclosed duly filled in DVAT 01, if he intend to opt for composition scheme. 7. The official should also check that none of the field of the application form, has been left blank. In case any field is not applicable, it should be either struck out or be mentioned "Not Applicable". 8. In case the application is not supported with mandatory documents, the application should not be accepted, by the receiving official. 9. The officer required to issue registration needs to dispose off the registration application within a period of 15 days from the date on which the application was received in DVAT Deptt, after conducting such enquiries as he deems fit.

If for some reasons, registration cannot be granted within 15 days then before the expiry of this period, the officer has to issue a notice to the applicant clearly stating the grounds on which his application is proposed to be rejected and permitting him to show cause in writing within next 15 days as to why application for registration should not be rejected. Here, it should be kept in mind that if neither the registration is granted nor the notice is issued by the required date, the applicant shall be deemed to be registered under the DVAT Act and the officer shall issue a Certificate of Registration to such applicant.

In case the applicant furnishes the reply to the notice, the office may either accept the application and register the applicant or reject the application for reasons to be recorded in writing. In case, the applicant fails to respond to the notice within the stipulated time, the application for registration shall stand rejected.

10. The official receiving the application should also ensure that the application is affixed with Court fee of Rs.500/- each under the DVAT Act as well as CST Act. 11. The registration of application which were submitted before 1/4/05 i.e. under the DST Act 1975, will be processed under the DST Act and in the concerned ward. In case the validity of the dealer is fixed before 1/4/05, then after getting registration under the DST Act, the dealer will deemed to be registered under the DVAT Act w.e.f. 1/4/05 as per Section 24 of the DVAT Act. The surety under such cases shall be prescribed under the DST Act and Central Act. 12. In cases where the liability for registration under DST Act has already arisen prior to 1/4/05 but the dealer has not yet applied for registration (he can apply within 30 days from the date of his liability), such applications shall be accepted in the concerned wards and in case validity of such dealer is fixed prior to 1/4/05, then the registration will be granted under the DST Act 1975. Such dealers will also deemed registered under the DVAT Act by virtue of Section 24 of DVAT Act w.e.f. 1/4/05. Such dealers will also be prescribed security under DST Act and CST Act as the case may be. 13. In case of deciding requirement of security for registration cases mentioned in para 11 & 12 above, the officers may keep in mind the provisions of DVAT Act.

SALIENT FEATURES OF THE ON-LINE PAYMENT SCHEME

1. Dealer can make payment of tax/interest/penalty or other dues under Delhi Value Added Tax and / or Central Sales Tax Act through Internet from anywhere and at any time.

2. Payment has to be made from saving/current account by the dealer through web site of the concerned bank.

3. User ID and Password and other information will be provided by the concerned bank.

4. Part `C' of the challan may be printed after successful payment of the dues.

5. Check 19 digit Challan Identification Number (CIN) on the challan before printing the same.

6. Enclose Part `C' of the challan after signing and stamping it with the return of the tax period to which the payment pertains at the time of filing the return with the Department of Trade and Taxes.

7. Check the payment so debited from the account statement after transaction.

8. Part `D' of the challan will be sent by the concerned bank in lieu of the payment made for record after duly signing and stamping.

9. Payments made after 8.00 pm to 8.00 am next day will be accounted in the next working day's payment while payment made between 8.00 am to 8.00 pm on any working day will be accounted for the same day.

10. Payments made at any time on Sundays & holidays will be accounted in the next working day's payment.

LOCAL SURETY BOND

KNOW ALL MEN BY THESE PRESENTS THAT
M/S ____________________
____________________

is held and firmly bound upto the President of India (hereinafter referred to as "THE GOVT." which expression shall unless excluded by for repugnant to the context, be deemed to include his successors in office and assigns) in the sum of Rs. ........

To be paid to the Government for which payments with and truly to be made to the said aforesaid dealer binds itself, its heirs, executor, administrators, and legal representative by these presents.

WHEREAS the above bounded dealer has made an application for grant of a Registration Certificate under Section 19 of Delhi Value Added Tax Act 2004 (hereinafter referred to as the said Act.)

AND whereas the said dealer has in pursuance of Section 25 of the said Act, is required to execute a bond with one surety in favour of the (Govt. in the above mention sum of Rs. ......................... for the due discharge by the said aforesaid dealer of the liability under the said Act, and for the purpose of securing and indemnifying the Government against all loss, costs or expenses which the Govt. may in any way suffer, sustain or pay by reason of the default or of failure in discharge of the liability under the said Act of the aforesaid dealer or any person or persons acting under it or for whom it may be responsible.

Now the condition of the above written bond is such that if the said dealer, its heirs, executors, administrators and legal representative shall pay or cease to be paid unto the Government amount due from it under the provision of said Act within the times prescribed under the said Act after such amount shall have been demanded from aforesaid dealer by the Commissioner of Value Added Tax, Delhi or by an officer to whom powers of the Commissioner of Value Added Tax, Delhi in this respect have been delegated and shall also at all times indemnify and save harmless the Government from all and every loss or expenses which has been or may at any time hereafter during the period in which the aforesaid dealer or any person acting under it or for whom it may be responsible, then, this obligation shall be void and no effect otherwise the same shall be and remain in full force.

AND it is hereby further agreed that in the event of the final cessation, liability of the aforesaid dealer under the Act, this bond shall remain with Commissioner of Value Added Tax, Delhi or an Officer duly authorized by him in this behalf for 36 Calendar months for recovering any loss, costs or expenses that may have been sustained, incurred or paid by the Government owing to act or default after the aforesaid dealer or any other person aforesaid and which may not have been discovered until after the final cessation of the liability of the aforesaid dealer under the said Act.

PROVIDED always that without prejudice to any other rights or remedies for recovering the loss or damage as aforesaid, it shall be open to the Government to recover the amount payable under the head as an arrear of "LAND REVENUE".

IN WITNESS OF AFORSAID DEALER
has hereunto set his hands this

Date:

Signed and delivered by the above said
dealer in the presence of

Signature of the Dealer /Principal

Witness No.1

(Name of Surety)
_________________
_________________

Hereby declare myself/ourselves surety(s) for the above dealer and guarantee that it shall do and perform all that it has above undertaken to do and perform in case of its making default herein. I/We bind myself/ourselves to forfeit to the President of India the sum of Rs. ....... in which the aforesaid dealer has bound itself or such other lesser sum as shall be deemed to be sufficient by the Commissioner of Value Added Tax, Delhi or any officer duly authorised by him in this behalf or recovery of any loss or damage which the Government sustain by reason of such default.

PROVIDED always that I/We shall not be released or discharged by reason of any for bearation Acts or commission the part of the Commissioner of Value Added Tax, Delhi which but for this provisions which discharge me/us.

AND I/we agreed that the Government may, without prejudice to any other right or remedies of the Government, recover from me/us the said sum as arrears of "LAND REVENUE".

AND I/we also agree that I/we shall not be at liberty to terminate my/our surety-ship except upon given to the said Commissioner of Value Added Tax, Delhi or delegates one year's notice in writing or my/our mention so to do and my/our liability under this bond shall continue in respect of all act, default and insolvency on the part of the said until the expiration of the said period of one year.

Date: Signature of the Surety

IN THE PRESENCE OF

WITNESS NO. 1

WITNESS NO.2 

Value Added tax hereby make it mandatory for the class of dealers, whose tax period is half Yearly

F.7(7)POLICY-III/VAT/2005-06/662                                                                                                                                                 DATED-17/12/2008

NOTIFICATION

The Delhi Value Added Tax Act, 2004(Delhi Act 3 of 2005) read with sub rule 5 of rule 27 of DVAT rules 2005,I Archna Arora, Commissioner, Value Added tax hereby make it mandatory for the class of dealers, whose tax period is half Yearly, to file there returns in electronic form, within 42 days of the end of their tax period, with effect from the Half Yearly returns For the tax period ending of 31^st March 2009, In such manner as prescribed in the Annexure attached herewith. 

This means that the electronics return for the tax period half yearly ending 31^st March 2009 is to be filed by 12-2-2009

The electronic return is to be filed in addition to the return required to be filed under-sub-section (1) of the section 26 of the Delhi Value Added Tax Act, 2004

Dealer's already filling electronic return shall continue to do so in the usual manner.

                                                                                      

                                                                                                                                                                                        (ARCHNA ARORA)

                                                                                                                                                                         COMMISSIONER, VALUE ADDED TAX

                                                                                                                                                                                   Government of NCT of Delhi

No.F.7 (7) POLICY-III/VAT/2005-06/662                                                                                                                                              DATED-17/12/2008

                  

Subject: Good Dealer Scheme - 2009

The Department of Trade & Taxes has evolved a Good Dealer Scheme 2009. This scheme will have the following features: -

2.      The selection of Good Dealer shall be based on following criteria: -

                     i.      No objection or appeal is pending as on the date of selection of good dealer

before any Assessment Authority / Appellate Authority / Tribunal / High Court / Supreme Court, and

                   ii.      No Enforcement action in the last 5 years, and

                  iii.      No late filling of returns and reports as prescribed under the DVAT Act - 2004

   & Rules, and

                 iv.      a) The Department shall identify dealers in six sectors as described below:-

Group-1 à Aluminum, Batteries, Cement, Electrical Goods, Furniture /
Almirah, Glassware, Hardware, Insulted wire, Iron & Steel, Marbles & Tiles, Misc., Non Ferrous Metal, Paints, Plastic Raw Material, Sanitary, Steel, Tiles, Timber, Watch & Jewellery.

Group-2 à AC, Computer, Electrical & Electronic, Telecom,

Group-3 à          Medicines, Medical Equipments, Cosmetics, Matteres / Carpets, Soap & Detergent,

Group-4 à         Machinery, Spare Parts, Tyre, Two Wheeler, Four Wheeler,
Heavy Vehicle

Group-5 à         Confectionary, Cooked Food, Dry Fruits, Edible oil, Halwai Products, IMFL. Liquor, Milk & Dairy Product, Non alcoholic, Beverages

Group-6 à         Petroleum Products, Lubricants, Readymade Garments, Photography Goods, Gift Items, Chemical and Detergent, Woolen, etc.

a)      After that the Department shall find out average growth in these sectors in the last 3-years since introduction of VAT, and

b)      The dealers who register 5% higher tax growth rate than the average growth of tax in the sector continuously for the last three years as per the information available.

c)      All the good dealers identified based on above criteria will be honoured and they will be entitled for the following benefits:

                                 i.            They shall be given a Certificate and Momento by Hon'ble Chief Minister / Finance Minister in the function.

                               ii.            No increase in security deposit for one year for issuance of Forms.

                              iii.            No inspection/adverse survey of such dealer shall be conducted unless specifically approved by the Commissioner (T&T)

3.      This list of `Good Dealers' shall be displayed on the Department's website.

4.      This is being issued with the approval of competent authority.

Due Date extended for filing DVAT-51 up to 31/03/2010 for Ist and IInd Quarter of F.Y. 2009-10

In exercise of the powers conferred under rule 49A of the Delhi Value Added Tax Rules 2005, sub-section (2) of section 9 of the Central Sales Tax Act, 1956, and sub rules (7) of rule 12 of the Central Sales Tax (Registration and Turnover) rule 1957.  I, Jalaj Shrivastava ,Commissioner, Value Added Tax, Government of National CapitalTerritory of Delhi, Do hereby, extend the time limit prescribed in

(a)    sub rule  (1) of rule 67 of the Delhi Value Added Tax Rules 2005 and rule 4 of the

Central Sales Tax (Delhi) Rules 2005 for furnishing of reconciliation return in Form DVAT 51, up to 31^st March 2010 for the Ist and IInd quarter of the year 2009-10

(b)    Sub rule (5) of rule 5, clause (a) of sub rule (3) of rule 6, clause (a) of sub-rule (5)

Of rule 7, sub rule (2) of rule 9, rule 6B and sub-rule (2) of rule 6A of the Central Sales Tax(Delhi) Rules,  2005  and sub rule (10) of rule 12 of the Central Sales Tax ( Registration and Turnover) Rules, 1957 for furnishing of the portion marked     ‘original’ of the Declaration Forms ‘C’,’E-1’ or ‘E-11’,’F’,’I’,’J’ and ‘H’  respectively , upto 31^st March 2010 for the Ist and IInd quarter of the year 2009-10 in respect of  Declaration Forms which relate to the year 2009-10

NOTIFICATION

No.F. 3(27)/Fin(T&E)/2009-10/ In exercise of the powers conferred by section 102 of the Delhi Value Added Tax Act, 2004 (Delhi Act 3 of 2005), the Lt. Governor of the National Capital Territory of Delhi, hereby, makes the following rules to further amend the Delhi Value Added Tax Rules, 2005, namely:-

RULES

1. Short title and commencement – (1) These rules may be called the Delhi Value Added Tax (Amendment) Rules, 2010.
(2) They shall come into force on the date of notification in Delhi Gazette.

2. Amendment of Rule 7 – In the Delhi Value Added Tax Rules, 2005 (hereinafter referred to as “the principle Rules”), in rule7, in sub-rule (1),-
(i) for clause (b) of the following clause shall be substituted, namely:-
“(b) In the case of goods specified in the third schedule – 40 percent”
(ii) after clause (d), the following clause shall be inserted, namely:-
“(e) declared goods, as defined from time to time in section 14 of the Central Sales Tax Act, 1956 (74 of 1956), - 50%.”

3. Amendment in Form DVAT-16 - In the principle Rules, in the Form DVAT-16 appended therein, -

(i) after entries in row R5.2 and before the entries in row R5.3 the following row shall be inserted namely:-
“R5.2 (1) Goods taxable at 5%”;

(ii) in row R5.7, after the words “exempted sale”, the words “other deduction claimed” shall be inserted;

(iii) after entries in row R6.2, the following rows shall be inserted namely:-
“R6.2(1) Goods taxable at 1%
R6.2(2) Goods taxable at 4%
R6.2(3) Goods taxable at 5%
R6.2(4) Goods taxable at 12.5%
R6.2(5) Goods taxable at 20%
R6.2(6) Works Contract taxable at 4%
R6.2(7) Works Contract taxable at 12.5%
R6.2(8) Exempted purchase”

(iv) For the words “Balance brought forward from line R8” occurring above row R9.1, the following entry shall be substituted, namely:-

“R9.0 Balance brought forward from line R8 (Positive value of R8)”

(v) after row R11.7, the following row shall be inserted, namely:-
“R11.7(1)Exempted sale / purchase including High Sea Sale etc” .

(vi) after instruction 5, the following instructions shall be added, namely:-

“6. Attach copy of month wise summary of Sale and Purchase registers maintained in Form DVAT-30 & 31 in the format appended at Annexure-2A & 2B. This should be reported dealer wise instead of bill & date wise. Sale/purchase made from un-registered dealers may be reported in one row for a month.
7. Dealers having tax period other than a month should also report the sale/purchase summary month wise.

8. Works Contractors should report gross sale turnover during the tax period including labour, services and consumables in the return and claim exemption for service charges etc. by mentioning it under item R5.7.”

4. In the principle rules, in the Form DVAT-16 appended, in Annexure after row A3.14, following rows shall be inserted, namely:-
“A3.15 Reduction in Input Tax Credit due to sale of goods at price lower than the purchase price [section 10(5)].
A3.16 Second or third installment of balance tax credit on capital goods [section 9(9)(a)].
A3.17- Opening Stock
A3.18 – Closing Stock”

By order and in the name of the Lt. Governor, of the National Capital Territory of Delhi,

DVAT New rule 6A w.e.f. 01/04/2010

“For the purpose of working out input tax credit, the input tax credit on the closing stock available with the dealer at the end of every tax period shall be carried forward to the next tax period or the following tax period or periods, as the case may be, till such stock is sold by the dealer.”

Also the dealer can claim refund in the following case only:-

1) Export sales
2) Dealer making inter state sales
3) In cases where the dealer being a manufacturer is making purchases at higher rate of tax while the sales of goods manufactured by him (not being exempt under section 6) are taxable at the lower rate under the Act.