Online Delhi VAT Process

The process for obtaining VAT registration has been made simpler by the Delhi Government to improve ease of doing business in India. VAT registration is required for all persons or entities selling good or products including 1, Snapdeal, Amazon and more. With the VAT registration process becoming simpler, more online sellers and offline seller are expected to obtain registration and become compliant with VAT regulations.

Who can Obtain Delhi VAT or DVAT?

Delhi VAT can be obtained by individuals (Proprietorship Firms), Partnership Firms, Private Limited Companies, One Person Companies, Limited Liability Partnerships, Public Limited Companies and other government or not-for-profit entities.

Delhi VAT can be obtained under two schemes namely composition scheme and normal scheme. Under the composition scheme, the dealer is required to pay DVAT at flat rate of 1% without claiming benefit on input taxes paid. In the normal scheme, the Dealer is required to pay DVAT at rates prescribed by the Government at 1% or 5% or 12.5% with eligibility to claim input tax credit.

Penalty for Not Obtaining Delhi VAT Registration

If a person, business or other entity who is required to obtain DVAT fails to apply and obtain VAT registration within one month from the day required to make VAT application, then the person or entity is liable to pay penalty equal to Rs.1000 per day from the date of default, subject to a maximum of Rs.1,00,000.

Delhi VAT Return Filing

After obtaining DVAT registration, Delhi VAT returns must be filed on quarterly basis along with the necessary annexures. Late of failure to file Delhi VAT returns could result in a penalty of Rs.400 per day. The VAT registration can also be cancelled by the VAT Officer, if failure to file VAT returns continue.

In addition, the Department of Trade and Taxes has recently issued a new annexure which all dealers selling goods on ecommerce platforms like Flipkart, Snapdeal or Amazon is required to file with the quarterly VAT returns. Non-filing of this annexure with the VAT return could result in a penalty of Rs.50,000.

Document Required for Obtaining Delhi VAT (DVAT)

The following documents must be submitted for obtaining DVAT:

PAN of the Proprietor / Company / LLP / Partnership Firm
Identity proof of all promoters
Address proof of all promoters
Address proof for place of business
Photograph of all promoters

To obtain DVAT registration in Delhi, visit IndiaFilings.com

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Frequently Asked Questions

Common questions about Delhi VAT Registration Process and Penalty Details.

Delhi VAT (DVAT) is a tax levied by the Government of Delhi on the sale of goods or products within the state. It is mandatory for individuals, businesses, and entities engaged in selling goods or products in Delhi to obtain DVAT registration.

DVAT registration is required for all persons or entities selling goods or products in Delhi, including individuals (proprietorship firms), partnership firms, private limited companies, one-person companies, limited liability partnerships, public limited companies, and government or non-profit entities.

The two schemes for DVAT registration are the composition scheme and the normal scheme. Under the composition scheme, the dealer pays DVAT at a flat rate of 1% without claiming input tax credit. In the normal scheme, the dealer pays DVAT at rates prescribed by the government (1%, 5%, or 12.5%) and is eligible to claim input tax credit.

If a person or entity fails to apply for and obtain DVAT registration within one month from the day they were required to make the application, they are liable to pay a penalty of Rs. 1,000 per day from the date of default, subject to a maximum of Rs. 1,00,000.

After obtaining DVAT registration, Delhi VAT returns must be filed on a quarterly basis along with the necessary annexures. Failure to file DVAT returns on time can result in a penalty of Rs. 400 per day, and the VAT registration may also be canceled by the VAT Officer.

The Department of Trade and Taxes has recently issued a new annexure that all dealers selling goods on e-commerce platforms like Flipkart, Snapdeal, or Amazon are required to file with their quarterly VAT returns. Non-filing of this annexure can result in a penalty of Rs. 50,000.

The documents required for obtaining DVAT registration include PAN of the proprietor/company/LLP/partnership firm, identity proof of all promoters, address proof of all promoters, address proof for the place of business, and photographs of all promoters.

Yes, if a person or entity is required to obtain DVAT registration, they must apply within one month from the day they were required to make the application. Failure to do so can result in a penalty of Rs. 1,000 per day, subject to a maximum of Rs. 1,00,000.

Yes, the VAT Officer can cancel the DVAT registration if the dealer fails to file VAT returns consistently.

According to the article, individuals or entities can obtain DVAT registration by visiting IndiaFilings.com.