DVAT - Filing of Objection and Appeal for Demands & Penalty

In case of a DVAT assessee who defaults in filing DVAT return or furnishes incorrect information in the DVAT return in the opinion of assessing officer, then commisioner may assess or reassess the tax due by the assessee after recording the reasons in writing for doing so for & levy interest and penalty there upon.

I. WHEN OBJECTION CAN BE FILED: Where the assessee disagrees with the Order of Assessing Officer which enhances the tax liability of the assessee then such assessee may file a Objection against such order with the appropriate VAT Authority*

Form For Filing An Objection: Objection to DVAT AO’s order shall be filed in Form 38.

The jurisdiction of authority with whom Objection is to be made shall be fixed by the commissioner on the basis of territorial or pecuniary i.e. monetary limits as may be deemed appropriate.

Reference to Form 38: While filling Form 38 first information that has to be filled by the assessee is the authority, to be determined as above with whom Objection is to be filed.

Three copies Form 38 along witn hard copies of documents as mentioned above shall also be submitted to DVAT authority after online filing of Form 38 with requisite annexures.

A copy of Form 38 along with required annexures shall be submitted to the AO against whose order objection is filed.

IC. TIME LIMITS FOR FILING OBJECTION UNDER DVAT: An objection can be filed within 2 months from the date on which notice of assessment is served on the assessee.  Where the assesse wants to file objection after thje expiry of stipulated period of 2 montsh from the date on which notice of assessment is served, then assessee has to file Form DVAT 39 indicating therein reasons for delay in making such objection.

ID. POWERS TO ADMIT ADDITIONAL EVIDENCE:  If fresh evidence is sought to produced before the commisioner which has no been produced before lower authorities then, a memorandum clearly stating reasons that why such evidence was not presented before VAT authority against whose order objection is being preferred.

IE. SIGNING OF FORM 38: Form 38 shall be signed by the assessee making such objection or his agent i.e. person duly authorised by him in this behalf (POA Holder) and shall be presented to the authority by the assessee himself or his authorised representative.

IF. ISSUE OF ACKNOWLEDGEMENT & ALLOTMENT OF DATE OF HEARING: Authority shall issue an acknowledgement of objection received to the person filing objection specifying the date of personal hearing.

II. DETERMINATION OF OBJECTIONS

The commissioner shall conduct the proceeding of the objection filed by examining:

III. Hearings for Objections Filed

a) Person making objection shall be given reasonable opportunity of being heard by the authority unless he expressly waives the personal hearing.


b) Objector shall not be allowed to argue on any ground which is not mentioned in the objection unless authority is satisfied that omission of such ground was not willful or unreasonable.

IV. DECISION OF OBJECTION

Decision of the Commisioner or VAT Authority deciding the objection shall be intimated in Form DVAT-40.

V. TIME LIMIT FOR DECISION OF OBJECTION

a. Within 3 months : Objection shall be decided by the commissioner within three months of submission of objection.

b. Extension by 2 more months : Commissioner shall continue consider the appeal for a further period of two months if the commissioner notifies the assessee in writing.

VI. DEEMED ACCEPTANCE OF OBJECTION

a. Notice to make decision If the commissioner does not pass an order within the time limits specified above then the assessee who filed the objection may serve a notice in writing on the commissioner requiring him to make a decision within 15 days of such notice.

In case of failure of commissioner to make a decision within 15 days of receipt of such notice then Objection filed shall be deemed to have been allowed by the commissioner.

VII. PROCEDURE FOR FILING ONLINE OBJECTION OF SALES TAX APPEAL

1) Login as a dealer at DVAT site.

2) Click on Objection Tab and Then click on Form DVAT 38.

3) In Form DVAT 38 select the nature of objection. You may select either " Objection against assessment under DVAT" or "Objection against assessment under CST" or objection under the provisions of Sec74(2)" or " objection against penalty or cancellation of rejection (DVAT 11)"

4) Fill the relevant F.Y. for which objection is to be lodged. 

5) Afterwards order list will be shown from which order can be selected against which objection is to be filed.

6) A screen showing form DVAT 38 will appear & following information need to be filled therein:

7) After submission, an acknowledgement will be generated.  Acknowledgement will be required for future reference. Fees for submitting an objection is Rs. 100 .

8) Submit three Sets of Form DVAT38 along with documents attached to the VAT Dept. (i.e. the authority deciding the objection) & obtain acknowledgement of submission on fourth copy.

Contributed by -

Tanveer Alam

Articled Assistant and CA Finalist

Sandeep Ahuja & Co. (Batch of 2018)

DVAT extends the last date for filing of Return for Quarter ended on 31.03.17 to 31.05.17

DVAT has extended the Last date to file D-VAT return for the quarter ended on 31.03.17  in Forms DVAT-16, DVAT-17 and DVAT-48. from 15.05.17 to 31.05.2017 - CIRCULAR NO.5 dated 15.05.17.

DVAT further extended Due date for return filing of Quarter ended 31.12.16

On 17.03.17 DVAT date has been further extended to 31.03.2017 for filing of DVAT return in DVAT-16, DVAT-17 & DVAT-48 for Quarter ended on 31.12.2016 vide notification no.28 dated 17.03.17
On 08.03.17 vide Circular No.26 again DVAT  last date for filing of  Return in Form 16, 17 & 48 for Q-3, 2016-17 has been further extended to 17.03.2017
Last date to file DVAT-16, DVAT-17 & DVAT-48 for Q3 of 2016-17 further extended to 8th March,2017.
DVAT has further extended the due date for online filing of return in Form DVAT-16, DVAT-17 and DVAT-48 alongwith enclosures  for 3rd quarter i.e Quarter ended on 31st Dec,2016 to 28th Feb,2017

DVAT date extended upto 13.02.17 for Quarter ended 31.12.16

DVAT return for quarter ended on 31.12.16 in Form 16,17 & 48 which was due to be filed till 25.01.17 is extended upto 13.02.17 vide Circular No.21 dated 27.01.17 

DVAT extends last date for filing of DVAT return for quarter ended on 30.09.16 to 14.11.2016

DVAT has extended the last date for filing online / hard copy of  DVAT Quarterly return of second quarter of Financial Year 2016-17 in Form 16, Form 17 and Form 48 along with all annexures and enclosures to 14.11.2016.

Due Dates extended by DVAT for DVAT Quarter 1 for FY 2016-17 & CBDT for Income Tax Returns for Asst Year 2016-17

Due Date Extended from 31 July 2016 to 5th August 2016 for filing of Income Tax Return (ITR)  of Asst Year 2016-17

The Income Tax Deptt. has extended the due date for filing of Income Tax Return (ITR) for the assesses for AY 2016-17 from 31st July to 5th August, 2016 for the assesses not subjected to audit.

DVAT has extended the due date of filing of return for 1^st quarter of Financial Year 2016-17  from 25^th July 2016 to 31^st August 2016

DVAT has extended the last date for filing of Online/ hard copy of First Quarter return for the Financial Year 2016-17 from 25.07.2016 to 31.08.2016

How to register DSC on DVAT & Digitally sign DVAT Return

SIMPLE WAY OF REGISTRATION OF DSC on DVAT

The filing of DVAT return for Quarter 1 of financial year 2016-17 is mandatory to be filed under Digital Signatures for the dealers having turnover of Rs.1 crore or more.

‘How to register DSC on DVAT’ is explained hereunder:

Pre-requisites

1.Digital Signature Certificate

2.Internet Connection

STEPS TO REGISTER DIGITAL SIGNATURE ON DELHI VAT WEBSITE (www.dvat.gov.in)

Installation of DSC on Computer System

1. Go to www.dvat.gov.in homepage

2. Click on the Downloads option on the left panel

3. Download and install POS Sync Software.

4. Attach DSC to the Computer.

5. Open the Internet Explorer.

6. Go to the Tools bar > Internet Options>Content>Certificates>Export.

7. Welcome Page window will pop up.

8. Click on Next>Next>Next.

9. Now give the Appropriate File Name.

10.Now again click on Next and then Finish.

11.Double click on the saved file. One window will pop up.

12.Click on Install Certificates and then click Next>Next>Finish.

Registration of DSC on DVAT Portal

13.Login the dealer account on DVAT website.

14.Click on More option on the top right side then click on Register DSC.

15.Now click on Select Certificate option and select appropriate DSC and enter the PIN.

16.Successful Registration message will pop up.

How to Digtally sign DVAT Return

17. After approving Return Forms check history of returns filed & note down the return Id to be signed
18. Go to Return > Click -Sign Form DVAT 56 digitally
19. Select > Form 56 or Form 49 > Form 56 PDF - Write Return ID to be digitally signed
20. Select Serial Number of Return ID and click on Sign > Enter Private Key and Pop massage of successfully signed will be communicated 

Caution- Use only Internet Explorer 

DVAT Updates

16-05-2016

 Last date for filing of DVAT returns in form DAVT 16, 17 and 48 for the Quarter ended on 31.03.2016 of Financial Year  2015-16 further extended to 23.05.2016 announced by DVAT

10-05-2016

All Registered Dealers in Delhi are required to display Certificate of Registration at Principal Place of Business & a certified copy of Registration Certificate at all other Places / branches in Delhi

The Dealers are also required to Display TIN Number and Ward number outside the main entrance of all business places or branches in Delhi

DVAT extends the due date of CR-II return form upto 16 May,2016

DVAT on 28th April, 2016 extends the due date of  the returns in Form CR-II for the financial year 2015-16 till 16th May, 2016. 

DVAT Composition Scheme for Small Food Dealers (Having Turnover not Exceeding Rs.50,00,000/-)

DVAT has introduced a composition scheme for small dealers whose turnover does not exceed Rs fifty lakh in preceding financial year and expected turnover of current year does not exceed Rs fifty lakh to minimize tax burden provided that the condition of turnover during the preceding year shall not apply to a dealer who commences his business during the current year.

Applicability w.e.f. : 01^st April 2016

Eligibility to pay tax under this Scheme:

·         The dealer must be registered

·         The turnover of preceding financial year as well as current financial year does not exceed 50 lakh.

·         The dealer is not making sales of any goods 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 whether these are provided as indoor service or outdoor service by hotels/ restaurants/ sweet stalls/ sweet shops/ club/ caterers or any other eating houses.

Composition Amount:       5% of entire Turnover

Rate of Tax:

The tax will be paid at the rate specified in section 4 of the Act on the value of opening stock held on first day of financial year from which he opts for the scheme.

He shall furnish the detail of such opening stock in form RH 02 with proof of payment of due tax in form D VAT 20 with his application in form RH 01.

 In Case dealers who opts this Composition Scheme they shall not be entitled for :

a)      Purchasing from or sale to any goods outside Delhi.

b)      For making a purchase from unregistered dealer except in case of goods specified in First schedule.

c)       For Booking tax credit under section 9 of the Act and calculating his tax under section 11 of the Act.

d)      For collecting any amount by way of tax under the Act and for issuing of “Tax invoices”.

Such dealer is liable to Retain all tax invoices and retail invoices of purchase made by him and retail invoices issued by him in respect of sales made by him as required by section 48.

 Other Major Points for consideration before opting for Composition Scheme:

1.       Once a dealer has opted to pay tax under this scheme, he shall be liable to pay tax under this scheme for the following year also provided he can opt out  from this scheme subject to :    

a)      Condition specified under section 20 of the act and

b)      Furnishing of intimation regarding withdrawl  from this scheme within 30 days from the end of financial year in form RH 03.

Once the dealer opts out from this scheme, he can claim credit of tax paid on opening stock held by him on first day of said following year.

2.       A dealer who apply for a fresh registration can opt for this scheme by filling application in form RH 01 along with his registration application in form D VAT 04

3.       A dealer who is paying tax under section 3 of the Act can also opt for this scheme by filling application in form RH 01 within 30 days from the 1^st day of the year for which he wants to opt for this scheme.

4.       The dealers who are presently covered in general composition scheme as per sub section 1 to 11 of section 16 and they are also covered in the class of dealers prescribed in this scheme has to mandatorily withdraw from existing scheme by filing form DVAT-03 within a period from 1^st April 2016 to 30^th April 2016.These dealers can opt for the new scheme as per above procedure but it is not mandatory, If these classes of dealers are not interested in composition scheme can file returns as per normal procedure

5.       The Tax period will be quarterly unless otherwise prescribed by commissioner for a dealer or class of a dealer.

6.       The tax paid by dealer shall not be adjusted at any stage against the liability of dealers to pay tax under section 3 of the act for a period other than the period for which dealer is liable to pay tax under this scheme.

7.       If turnover exceeds Rs. 50,00,000 at any time during the financial year:

·         He shall be liable to pay tax under section 3 of the Act 

·         He shall be liable to furnish intimation in form RH 03 within 7 days from which turnover exceeds Rs. 50,00,000

·         He shall be entitled to claim credit of Input Tax paid on Opening  Stock held by him in Delhi on such day

8.       A dealer who has defaulted to pay tax under this scheme for two consecutive period,

·         Shall be liable to pay tax under section 3 and cease to pay tax under this scheme immediately from the 1^st day of latter tax period from the period for which he has committed default.

·         He shall be liable to furnish intimation in form RH 03 within 7 days after the end of due dates specified.

·         He shall be entitled to claim credit of Input Tax paid on Opening  Stock held by him in Delhi on such day

9.       All the provision which are not contrary to this scheme shall apply to every dealer who is opting to this scheme.

10.   In case of failure to comply with the condition mentioned in the scheme or at a later stage is found that he was not eligible for the scheme, all the provision of the Act including the liability to pay tax under section 3 along with interest for delay shall apply mutatis mutandi as if he was not covered under the scheme.

Contributed By CA Shalu Gupta from Sandeep Ahuja & Co

Sarees Exempt from DVAT or Taxable at 5%

THE FIFTH SCHEDULE TO DELHI VAT (See section 6)

List of dealers exempted from paying tax on sale of goods

S.No 31 Silk and garments made of silk but not including Sarees made of silk.

·         So the Dealer who Deals in Sarees made of Silk are not Exempt.

·         Dealers of Silk  ( Fabric)  and Garments made of Silk are Exempt

THE FIRST SCHEDULE  List of Exempted Commodities

WEF 21.06.2011

Exempted : Textile as described in the First Schedule to the Additional Duty on Excise (Goods of Special Importance) Act, 1957 before its omission by the Govt. of India to give effect to section 75 of the Finance Bill, 2011 but not including –

(i)  Bed-sheets, pillow covers and other made ups covered by HSN entry nos. 63.01, 63.02, 63.03, 63.04, 63.05 and 63.06. (for HSN Entries – Refer Annexure I at the end of the Schedules)

(ii)  Imported varieties of textiles.

(iii)(a) industrial textiles such as canvass belt, filter cloth etc.

                (b) furnishings having sale price of more than Rs. 100/- per meter or per piece or per set, as the case               may be, other than handloom furnishings.

                (c) Suiting having sale price of more than Rs. 500/- per meter

                 

              So Items covered under (i) to (iii) above are Taxable

WEF  11.05.2005

Exempted : Khadi garments, bags and made-ups.

WEF 31.03.2008

Exempted :   Embriodery and Zari items, that is to say-(i) imi, (ii) zari, (iii) kasab, (iv) salma, (v) dabka, (vi) chumki, (vii) gota, (viii) sitara, (ix) naqsi, (x) kora, (xi) glass bead, (xii) badla and (xiii) gazai

THE THIRD SCHEDULE (See section 4)

List of Goods Taxed at 5%

WEF 11.05.2005

Taxable : Silk fabrics including silk sarees but excluding handloom silk unless covered by Additional Excise Duty.

Contributed By Pawan and Amit ( CA Finalist at Sandeep Ahuja & Co.)

DVAT extends last date of return of III Quarter till 05.02.2016

DVAT  extended the last date of filing of online/hard copy of third quarter return for the year 2015-16, in Form DVAT-16, 'DVAT-17 and DVAT-48 along with required annexure/enclosures to 05.02.2016 .

The due date of DVAT online return for 1st quarter of 2015-16 extended to 04th August, 2015

The last date of filing of online/hard copy of first quarter return for the year 2015-16, in Form DVAT-16, DVAT-17 and DVAT-48 along with required annexure/enclosures has been extended to 04^th August, 2015. However, the tax due shall continue to be paid in the usual manner. The dealers filing the returns through digital signature need not be required to file hard copy of the return/Form DVAT-56.

BE-1 & BE-2 For Booking Info from Banquet Halls, Farm Houses, Party Halls, Hotels, Open Grounds

Booking information from Banquet Halls, Farm Houses, Party Halls, Hotels, Open Grounds, in Form BE-1 & BE-2 

From 1st January, 2014 owner/ custodian of the venue has to enroll in BE-1 form and are required to file the information 3 days before the program. A unique enrolment number shall be given by the Department once the form BE-1 is submitted to the Department. 

-The eligible persons have to file both BE-1 & BE-2 manually and get the duplicate copy stamped from the office of concerned Zonal Addl. /Jt. Commissioner of the Department. 

-An enrolment number may be obtained on the next working day of filing manual BE-1. 

The concerned zonal in-charge shall take this unique number from Addl.  Commissioner 

(System) and pass on to the applicant on the next working day (to be recorded on the duplicate 

copy of BE-1). Later on, after switching over to electronic  mode, an enrolment certificate would 

be issued and delivered to all eligible entities.  

-It will be mandatory to mention the enrolment number on return form BE-2 and 

for all future correspondence with the Department. 

-It can be revised however, on revised return, word – 'Revise' may be mentioned. In the electronic mode, facility of drop down shall be provided. 

 The latest information shall be treated as final for a period. 

-Estimated value of food and liquor to be sold has to be provided While filing original BE-2. 

DVAT Extends the Date for Submission of AR-1 to 28/02/2014

DVAT hereby extends the date of submission of audit report in Form AR-1 for the year 2012-13 by dealers having turnover of Rs. 10 crores or more in 2011-12 or 2012-13 to 28/02/2014 instead of 31/01/2014 as notified earlier.

Clarification for filing Second/ Third Quarter DVAT Return online

            Clarification for filing Second/ Third Quarter DVAT Return online

                                               CIRCULAR  NO. 22 DATED 06.11.2013

1.     Form 1 Pt. R6 & R7: Rate wise break-up of Exempted Turnover

In this the Column “Tax Rate (DVAT)’ would NOT BE MANDATORY for the filers filing Second Quarter Return. However it would be MANDATORY for those who are filing the returns of Third Quarter and so on.

2.     DVAT 16 Pt R7.4: TDS Credit on the Basis of Deductor’s Certificate

The credit of TDS is to be taken on the basis of TDS Certificate in the tax period in which such certificate has been issued as provided in section 36A of Delhi Value Added Tax Act, 2004.

3.     R10 – Details of Pending Statutory forms / Declarations

a)     Here the details of the Furnished Forms/Pending forms/Missing Forms in lieu of concessional sale / stock transfer (outward) are to be provided.

b)     This would be MANDATORY if there is any Central Sale against Forms. 

c)     The dealers can also make payment themselves of the tax with interest against missing forms.

d)     This information would be used in making default Assessment without seeking any additional information or requiring the presence of dealer.

e)     This information is necessary for expediting refunds of dealers where sales/ supply against statutory forms C, F, H, etc.

f)      Information once submitted in the return would be auto-reflected in future returns and dealers will only be required to update the information.

4.     Stock/Branch Transfer against F Forms

Supply of goods for job work (inward as well as outward) is required to be supported by statutory forms ‘F’ in accordance with the requirement of Central Sales Tax Act, 1956.        

5.     Tax rate wise break up of turnover in Annexure 2A & 2B

Information pertaining to tax rate-wise turnover of purchase & sale during the course of inter-state trade and commerce in column 5 of both the annexures will NOT BE MANDATORY field for the second quarter return of the current year.

Filling up Tax Contribution (Difference of Output & Input Tax for each commodity) in block R3 of DVAT return filed in Form DVAT-16 is NOT MANDATORY for Second Quarter, but it would be MANDATORY for the Third Quarter & Onwards.

                                                                   

CIRCULAR  NO. 31 DATED 31.12.2013

1.     Since some dealers are not able to compile and file the information till date, Last date of filing R10 & Third Quarter Return extended to 31^st January 2014.

2.     Last date of Submission of Audit Report in Form AR-I for the year 2012-13 by dealers having turnover of Rs. 10 crore or more in Financial Year 2011-12 or 2012-13  extended to 31^st January 2014.

Contibuted by Shiwali Shukla ( CA Finalist )