Steps And Guidelines For Registration Under The Delhi VAT Act

What is VAT?

VAT refers to the Value added tax, which is imposed on the disbursement of consumer goods. It is a multi-point destination based taxation system in which tax is levied at each level of transaction in the production chain. The term Value added refers to the hike in the value of goods/ services at each level of transactions in thedistribution chain. VAT is a subject of the State List i.e., the states excercise full sovereignty in taking decisions for the same. Central Government here works as a facilitator and looks after the correct implementation of the VAT whereas the Ministry of Finance is the main body that levies and implements the VAT at both the Central and the State level.

Procedure made easy, just three simple phases to follow and you are through!

Visit the official Delhi VAT website www.dvat.gov.in, select the New Registration option present on the left hand-side of the webpage. Now submit the obligatory information online like the name of the company, PAN, Aadhaar number, Contact details for PAN corroboration from NSDL. Once your information gets successfully verified a username and password will be generated and updated to you through email.

In the next phase of the Registration process, the dealer will login to the website in order to fill in the Registration forms- DVAT-04 for Local or FORM-A for Central. The form includes information columns like the prime and additional location of your business, Bank details, Particulars of the firm/ company’s participants and the List of items that your company deals into. Also upload the assisting documents like rent agreement, NOC of the Landlord, ownership proof, electricity bill, telephone bill, identification proof, address proof, all these documents have to be in size less than 100kb in jpeg or pdf format, if the size of the documents exceeds the limit, re-size them using tools like Microsoft office picture manager, Coreldraw, Photoshop etc.

The third phase of the Registration process includes the submission of the registration application to the VAT department online. After the submission of the application, the dealer will receive an interim TIN and a password, which can be easily used for upcoming transactions. The dealer will be asked to submit a sum of Rs. 1025 as court emolument online. Once the entire thing is endorsed by the VATI, take a copy of the online generated Registration Certification.