The document summarizes recent amendments to Delhi VAT regulations. Key points include: 1) The threshold for dealer registration has increased from Rs. 10 lacs to Rs. 20 lacs in annual turnover. 2) TDS rates on works contracts have increased from 2-4% to 4-6% depending on whether the contractor is registered. 3) Dealers with over Rs. 10 crores annual turnover must now submit audit reports and additional tax details online. 4) A new Form T-2 must be filed online by large dealers before goods enter Delhi from other states.

1. PRESENTS
DELHI VAT AMENDMENTS
HIGHLIGHTS - 2012 -13
DATE: 15/05/2013
Saturday, May 18, 2013 For information purpose only.

2. Registration Related Clause
Relaxation in limit of turnover for registration
 Taxable sales increased from Rs. 10 lacs to Rs. 20 lacs : which means there is no
requirement of registration for dealers in Delhi until there turnover reaches over Rs.
20 lacs in financial year.
 Dealers has to deposit their tax, with in 21 days of next month for the previous
month irrespective of their tax liability.
 The commissioner shall not host the details of the dealers, whose registration status
has got cancelled on the department website for more than 3 months.
Saturday, May 18, 2013 For information purpose only.

3. Work Contract Tax – TDS Related Clause
Rate of TDS on works contract
 Where the deductee – contractor /sub-contractor is not registered under the
Delhi VAT Act, rate of TDS on works contract has been increased from 4% to 6%.
 Where the deductee – contractor /sub-contractor is registered under the Delhi
VAT Act, rate of TDS on works contract has been increased from 2% to 4%.
Saturday, May 18, 2013 For information purpose only.

4. Work Contract Tax Related Clause
As per new proviso inserted in section 16(1) w.e.f 01.04.2013, dealers will
not have options to pay tax u/s 16(1) where Government has notified a
composition scheme for a class of dealers u/s 16(12).
Effect of Proviso
 With the insertion of said proviso, works contractor and dealers engaged in trading
of bullion, drugs and medicines could not opt for the general composition scheme
u/s 16(1)(of 1%) w.e.f 01.04.2013 since a separate composition scheme has been
notified for them u/s 16(12) .
 With this amendment, petty works contractors, whose turnover is up to Rs.50 Lacs
and paying tax under the Composition Scheme u/s 16(1) ,would be adversely
affected.
Saturday, May 18, 2013 For information purpose only.

5. Requirement of Submission of Audit Report
 Now dealers don’t have obligation to furnish annual financial statements and audit
reports u/s 44 AB of IT act, 1961. Sale tax Commissioner is now authorized to notify
the forms, manner and time for furnish the audit report by the dealer.
 Commissioner has now given power to notify the dealers, whose turnover has
exceeded Rs.10 crores during 2011-12 or any subsequent year (except 100%
exporters and exclusive dealers in exempted goods), shall furnish audit report for
2011-12 and any subsequent years in Form AR-1 up to 15th November of the
following year.
 In case of failure of submission of Audit Report , Penalty to 1% of turnover or Rs. 1
Lacs , whichever is less.
Saturday, May 18, 2013 For information purpose only.

6. Introduction of Form T-2
 Now Dealer having turnover more than 10 cr. have to submit online details of invoice
and goods receipt note in respect of all goods purchased/received as stock transfer
from outside Delhi, in Form T-2 w.e.f 01.04.2013, before the goods physically enter
the boundary of Delhi.
 In cases, the complete information in Form T-2 is not filed online before the goods
enter Delhi, the Delhi dealer shall not dispose of /sell/dispatch such goods till the
vehicle No. in Form T-2 is updated online.
 However, if the vehicle No. is not available in advance, Form T-2 would need to be
filed without vehicle No. and the vehicle No. would need to be updated within 24
hours of receipt of the goods by the Delhi dealer.
Saturday, May 18, 2013 For information purpose only.

7. Submission of Online details of stock
as on 31st March Every Year
Dealers are required to submit details relating to central declaration forms received
against the stock transfer or central sales made on concessional rates, central
declarations forms missing and tax deposited on account of missing forms quarter
wise ,online using his login id and password ,for all quarters beginning 01.04.2011
onwards in Form CD-1 . The last date for filing of information online in Form CD-1
for every quarter shall be the same as the last date for submission of reconciliation
return in Form DVAT-51 for the quarter
Saturday, May 18, 2013 For information purpose only.

8. Other Important amendment
 There will be a uniform Tax period, for all dealers irrespective of their turnover,
which will be “a quarter”. So every dealer has to file return on quarterly basis.
 Concept of optional Tax period has been withdrawn
 Form DVAT-55 is omitted
 Requirement to maintain new records in Form DVAT-30A and DVAT-31A-entry wise
details of debit /credit notes relating to purchases and sales.
 Now dealer has to issues valid tax or retail invoice, for all the sells of goods
exceeding Rs.100/- in any one transaction to any person.
Saturday, May 18, 2013 For information purpose only.

9. Other Important amendment
 Substitution of Return Form in DVAT-16 : Modification in the Form and insertion of
two Annexure therein : Annexure 2C and 2D in relation to entry wise details of
debit /credit notes relating to purchases and sales.
 Substitution of Return Form in DVAT-17 : Modification in the Form and insertion of
two Annexure therein : Annexure 2A and 2B relating to summary of purchases and
sales.
 Deposit of Tax within 15 Days from end of the month in which tax was deducted
under WCT.
Saturday, May 18, 2013 For information purpose only.

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Saturday, May 18, 2013 For information purpose only.