Changes in Delhi Value Added Tax
- Monthly Tax payment: Tax to be deposited by 21st 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