VAT is a form of consumption tax that is indirect in nature, which means that it is collected by an intermediary, instead of being directly levied by the Govt. The difference between this and sales tax is that VAT is collected at multiple points. This is seen as a replacement to the tax structure currently existing.
Anybody buying or selling goods or products directly or indirectly, for his business or in connection to the business, irrespective of whether the payment is differed or is paid as salary or having any other consideration; this may include
The transactions which come under the term “sale” according to the DVAT Act are
Registration to this Act applies to every dealer if
Tax applicable for
|S.No.||Section||Circumstances||Taxable Quantum (Rs.)|
|1||16A(7)||Casual trader as defined u/s 2(1)(g)||NIL|
|2||18(2)||Dealer who imports any goods for sale in Delhi||NIL|
|3||18(2)||Any other dealer||10,00,000.00|
For dealers involved in work contract activities, the turnover before deducting the labor and service charges also referred to as gross turnover forms the tax quantum.
According to section 18(3) of the Act, the turnover from the following is not included in the tax quantum for the dealers:-
|A)||Sales of capital assets.|
|B)||Sales made during the process of winding up of dealer’s activities.|
|C)||Sales made as part of the permanent diminution of the dealer’s activities.|