What is VAT?
VAT (value added tax) constitutes a consumption tax on a commodity if value is applied from manufacturing to the point of sale at every level of the supply chain. The amount of VAT the user pays for the product is less the expense of goods already paid used in the product.
VAT Process Delhi Online
The Delhi government has streamlined the procedure of applying for VAT to improve its operations in India. All individuals or organisations selling goods or goods, including on Flipkart, Amazon, Myntra and more, need VAT registration. Registration is compulsory. Both online sellers and offline sellers can register and comply with VAT laws as the VAT registration process becomes simpler.
Who can Obtain DVAT or Delhi VAT ?
Delhi state can collect VAT through individuals (proprietorship companies), partnerships companies, private limited companies, single-party companies, limited liability partnerships, public limited firms and other public or non-profit organisations.
Under two schemes, Delhi VAT may be achieved, namely composition scheme and standard scheme. The dealer shall pay DVAT at a flat rate of 1 percent under the scheme of composition without demanding the benefits of the input taxes paid. Under normal operations, the dealer is required, with an ability to claim input tax credit, to pay DVAT at government rates of 1 to 5% or 12.5%.
Penalty for failure to register for Delhi VAT
In the event that a person, business or other entity requiring DVAT does not apply and receive the VAT inscription within one month of the day required to apply for VAT, a person or entity is liable, subject to the maximum of Rs.1000, to pay penalty equivalent to Rs.1000 per day of its default date.
VAT Filing for Delhi
Delhi VAT returns shall be filed on a quarterly basis together with the required annexes after receipt of the DVAT registration. Delhi VAT returns may not be subject to a fine of Rs. 400 per day after they are delayed. If the failure of the VAT return file persists, the VAT registration can also be revoked by the VAT official.
The Ministry of Trade and Taxes has recently published a new appendix, which is required to be filed with the quarterly VAT returns by all seller of products on e-commerce platforms as Amazon, Myntra or Flipkart. If this annexation were not filed with the VAT return, a penalty of Rs.50,000 could result.
Document Required for Obtaining Delhi VAT (DVAT)
For DVAT to be issued, the following documents must also be submitted: PAN of the Proprietor / Company / LLP / Partnership Business Proof Identity Identity of all promoters Proof of address of all promoters Address evidence of place of business.