Delhi Value Added Tax (DVAT) Registration- Documents for DVAT Registration-Voluntary Registration-Mandatory Registration

Traders and dealers of different items need to register with the Delhi Value Added Tax (DVAT) authority in some circumstances. Delhi Value Added Tax Act, 2004 (DVAT) have provision for two type of registration.

1. Voluntary Registration

2. Mandatory Registration

Voluntary Registration
Those dealers who are not required to get mandatory registration can voluntarily apply to register for Delhi Value Added Tax in case he is a dealer or intends to start business in Delhi from a particular date. But I is not necessary to register a dealer with DVAT until it becomes mandatory for a dealer to get the business registered with the Department.

Mandatory Registration
In the following circumstances it becomes mandatory to registered with the DVAT department.

In case of a dealer when already engaged in a business, his turnover in the current year exceeds Rs 20,00,000/- (Proposal in Budget).

The dealer is liable to pay tax or is registered or required to be registered under Central Sales tax Act, 1956 ie. Dealer has conducted any interstate sale or purchase.

In case of Casual Trader, three days prior to commencement of the business activity in Delhi.

Turnover for registration purposes does not include the following:

Sale of capital assets
Sales made in the course of winding up of business

Sales made in the course of a permanent diminution of the dealer's activity.

In the case of dealers involved in the execution of works contracts, the turnover includes the total contract amount.

Time Limit for Registration with Delhi Value Added Tax (DVAT)
A dealer must apply for registration with DVAT in the prescribed DVAT 04 Form, within 30 days from the date on which it becomes mandatory for him to get itself registered with the Department.

Single Registration for dealers having more than one Business Premises within Delhi

The dealers who are having more than one business premises in Delhi can opt for single registration. In such cases, it is necessary to mention all premises in the registration application.

If the dealer is having more than one place of business within Delhi, the Dealer needs to nominate any one such branch or place as its principal place of business.

Documents and Information for Registration with Delhi Value Added Tax (DVAT)
Board Resolution (In case of Companies) to the effect of VAT registration in Delhi and authorizing one or more directors to undertake all relevant formalities for DVAT registration.

If the dealer is liable to tax under the Central Sales Tax and become liable for registration, the following documents are also required to be enclosed with the application:

a. First Purchase Bill

b. First Interstate sale bill

c. Copy of G.R./ R.R. relating to dispatch of goods

d. Photocopy of the draft/ cheque received

e. Bank Statement consisting of such payment

Proof of Incorporation
In case of Companies - Memorandum of Association and Certificate of Incorporation

In case of Partnership Firm - Partnership Deed and Registration Certificate
In case of constitutions other than proprietary - Relevant Incorporation documents

Copy of rent agreement in case of leased building and Proof of legal possession of the principal place and additional places of business at Delhi and also NOC from Lessor.

Copy of PAN card of the Company or firm.
If the Company or firm is registered for VAT with other places, copy of VAT & CST registration certificate of that location.

Photographs of the Directors or Proprietor or Partner as the case may be.

Copy of PAN Cared of the Directors, Proprietor or Partner

Bank account details in Delhi with Account number, bank name and branch and MICR code.

Copy of bank statement evidencing the bank account number and details.

Application form for registration with Delhi Value Added Tax (DVAT) (Form DVAT) 04 and Central Sales Tax (CST) (Form A) duly signed by the authorised Person, Director, Partner or Proprietor.

Details of authorised signatory in Delhi with his PAN and address proof and photograph.

List of goods to be traded

Surety of Rs. 1 Lakh in Form DVAT 12

Registration Fee of Rs 500 in the form of Court Fee stamps and a fee of Rs 25 under CST in the form of court stamps

Security Deposit Amount

Dealer at the time of registration is required to furnish a security for an amount not exceeding Rs.1,00,000/-. The security amount may be reduced by the following amount:

Maximum deduction available - Rs. 50,000/-