Section 86(4)
Failed to apply for DVAT registration within one month from the day on which requirement arose.
Delhi tax law guide
Penalties under the Delhi Value Added Tax Act, 2004
Section 86 of the Delhi Value Added Tax (DVAT) Act sets out penalties for specified failures involving registration, returns, tax credit, record keeping, invoices and other statutory obligations.
Current legal position: GST replaced VAT on most goods from 1 July 2017. DVAT remains relevant to transactions in goods outside GST, including specified petroleum products and alcoholic liquor for human consumption, and to historical assessments, appeals and other proceedings. A penalty depends on the law, amendments and notifications applicable to the relevant transaction or default.
How Section 86 works
Section 86(1): For the purposes of the provision, a tax deficiency generally refers to the difference between tax properly payable and tax paid for the relevant calendar month, subject to statutory explanations. Section 86(2): The Government may vary penalty amounts by Gazette notification, with increases applying prospectively as provided in the Act. Section 86(3): Where multiple penalties arise from the same conduct, only the greater penalty is payable.
The descriptions below identify the subject of each subsection. They are not a substitute for the exact statutory wording or the penalty amounts and conditions in force on the date of the default. Read the officially hosted DVAT Act text (2014 consolidation) alongside later amendments and notifications on the Delhi Department of Trade and Taxes website.
Registration and registration particulars
Section 86(5)
Failed to file information for Amendment in Registration Certificate of Delhi Value Added Tax.
Section 86(6)
Fails to apply for cancellation of Registration Certificate under section 22(2) of Delhi Value Added Tax.
Section 86(7)
Any person falsely represents that he is a Registered Dealer of Delhi Value Added Tax: Penalty u/s 86(7).
Section 86(8)
Fails to company with the condition of voluntary registration of Delhi Value Added Tax: Penalty u/s 86(8).
Returns, input credit and tax deficiencies
Section 86(9)
Fails to furnish any return, Revised Return or other document under Chapter V Delhi Value Added Tax: Penalty u/s 86(9).
Section 86(10)
Any Person furnish false DVAT Return or fails to furnish return or Omits Material Information: Penalty under Section 86(10) of Delhi Value Added Tax Act.
Section 86(11)
Any dealer who has claimed tax credit under section 14 of this Act or claimed a greater amount of tax.
Section 86(12)
Where a tax deficiency arises: Penalty u/s 86(12).
Accounts, records and invoices
Section 86(13)
A person fails to prepared required records and accounts or fails to prepare it in proper manner or fails to retain record for prescribed period: Penalty u/s 86(13).
Section 86(14)
A person or dealer fails to provide the document required under section 59(2) or 59(3): Penalty u/s 86(14).
Section 86(15)
Prepares records and accounts i.e. false misleading or deceptive.
Section 86(16)
A person has issued a retail invoice or tax invoice with in correct or incomplete particulars, or failed to account it correctly.
Section 86(17)
A person who is not authorised under this Act to issue tax invoice has issued a tax invoice for sale.
Section 86(18)
If any dealer liable to have his accounts audited under section 49 of DVAT Act fails to furnish true copy of audit report.
Transport, statements and special dealers
Section 86(19)
Goods are being carried by a transporters without proper and genuine documents for in the documents referred to in section 61(2).
Section 86(20)
Statement to the commissioner: False, misleading, deceptive, omits statements.
Section 86(21)
A casual trader who is required to be registered under DVAT act failed to apply in stipulated time.
Section 86(22)
A casual failed to furnish return or other document with return in the due date.
Section 86(23)
Any person organizes exhibition cum sale in Delhi and fails to Comply with Delhi Value Added Tax Act.
Penalty assessment, objections and appeals
Section 33 of the DVAT Act addresses assessment of penalties, while Section 74 provides for objections to specified decisions or assessments. The applicable time limits, procedural requirements and appeal provisions must be checked against the current legislation and relevant orders. The department also publishes DVAT forms, including Form DVAT 24A for notice of assessment of penalty.
For historical cases, review the law as it stood when the alleged default occurred. For ongoing tax compliance, consult the Delhi GST legislation where GST applies.
Updated: 11 October 2026. This article is general legal information and does not determine liability in an individual case.