Notifications and Circulars: DVAT

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  • Exemption on payment of VAT on certain items granted to Embassy of Socialist Republic of Vietnam by Delhi Government

The Delhi Government vide Notification No. F.5(54)/Policy/VAT/2013/PF/1721-31 dated March 18, 2016 provide facility of refund on certain items like Telephone, Office stationary, Office equipment, Automobile, Motorcycle etc. This notification shall come into force w.e.f. 30.12.2015

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  • New Composition Scheme for Halwais and Restaurants increases the VAT tax rate from 1% to 5% by the Delhi Government

The Delhi Government vide Notification No. F.3(29)/Fin(Rev-I)/2015-2016/dsvi/93 dated March 18, 2016 has increased the rate of VAT from 1% to 5% in the Composition levy Scheme which can be adopted by the registered dealer whose  turnover during  the  preceding year as well  as  the  expected turnover  during  the current  year  does  not exceed fifty lakh rupees and  who is not making any sales other than that of ready to eat foods and non-alcoholic beverages including cooked food, snacks, sweets, savouries, juices, aerated drinks,  tea and coffee  etc. served in or catered indoors or outdoors by hotels,  restaurants, sweet-stalls, sweet shops, clubs, caterers  and any other eating houses.

Provided that the condition of turnover during preceding year shall not apply to a dealer who commences his business during the current year.

The Conditions to be fulfilled to avail the Composition Scheme are as follows:

The Dealers who are availing the composition, shall  not be eligible for making purchases from or procuring goods from or making sales to or making supplies to any place outside Delhi;

The Dealers also cannot do purchases from a person who is not registered under the DVAT Act except  in the case of goods specified in the First  Schedule;

The Dealers are also not eligible to claim the tax credit under Section 9 of the DVAT Act;

urther, those Dealers applying for a fresh registration can also opt for this scheme by filing application in Form RH 01 along with his registration application in Form DVAT 04;

The Dealers who has already opted for Composition Scheme, shall mandatorily withdraw from the composition scheme with effect from April 01, 2016 by filing application in Form DVAT 03 upto April 30, 2016. However, such dealers can opt for composition under this scheme.

If the Turnover of a dealer who opted to pay tax under this scheme exceeds Rupees 50 lakhs  at any time during the year , he shall be liable to pay tax under section 3 of the said Act and shall furnish the intimation in Form RH 03  within seven days from the date on which turnover exceeded  Rs.50 lakh and be entitled to claim credit of the input tax paid on opening stock held by him in Delhi on such day.

The Dealers who has defaulted to furnish the returns for two consecutive tax periods by the prescribed due dates shall not be entitled to enjoy the Composition Scheme.

In case a dealer has failed to comply with the conditions specified therein or who, at any later stage, is found not eligible for having opted this scheme, all the provisions of the Act including the liability to pay tax under section 3, along with interest due for delay, if any, shall apply mutatis mutandi as if the dealer has never opted for this scheme.

This Notification come into force from April 01, 2016

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