DVAT Amendment

Changes in Delhi Value Added Tax

·         Monthly Tax payment: Tax to be deposited by 21^st of each month irrespective of the return period.

·         DVAT Return: No Monthly returns. Only quarterly returns for all dealers irrespective of their turnover. Annexure 2A and 2B to be prepared quarter wise- party wise. Earlier, it was month wise-party wise. New Annexure 2C/2D related to Debit/ Credit notes to filed along with return

·         Form T-2 – DVAT dealers with GTO of 10 Crore and more to file Form T-2 for Central purchases.

·         Tax credit in respect of capital goods –1/3rd of input tax on capital goods is allowed immediately and balance 2/3 in corresponding tax periods, in two successive financial years.

·         Exemption Limit: Exemption limit for DVAT registration increased to Rs. 20 Lakh from Rs. 10 Lakh

·         TDS on Works Contracts: The rate of TDS increased from 4% to 6% in case of contractors/ sub-contractors not registered under DVAT Act.

·         Audit of Accounts – In case of failure, penalty increased from Rs. 10000 to Rs. 1 Lakh or 1% of Turnover whichever is less.

·         For the purpose of calculation of DVAT payable - Imported goods cannot be sold below the value determined by the Custom Authorities for payment of Custom Duty

CA Rahul Jain

rahuljain@rpmd.in