Sales Tax plays a very important role in case of purchase of sale of taxable goods. In this connection, we would like to clarify the following points:-

Q. Is sales tax charged on cost of packing of material?

Ans. Yes. Sales tax also charged on the packing material used for packing the goods.

Q. What should be the rate of sales tax on Packing Material?

Ans. The rate of tax applicable to the goods packed in such packing material will be the rate of tax applicable on this packing material. Where such goods are exempted from tax, the sale of packing material/container will also be exempt from tax

Q. What are the different forms which are to be maintained by the local registered dealer?

Ans. There may different types of forms in different states in India. However, in Delhi, we have the following forms:-

  1.  DVAT – 16 (VAT return)
  2. DVAT – 20  for Tax Payment
  3. DVAT – 17  for VAT return for Composite Dealer
  4. DVAT – 30  to maintain the Details of all purchases (local, Central, Import, Transfer)
  5. DVAT – 31 to maintain the Details of all Sales (local, Central, Export, Transfer) should be kept by all dealers in this form.

Q. What is Form 2A in VAT?

Ans. Form 2-A is applicable in Delhi State. It is the annexure which is given to sales tax department along with the VAT return. Form 2-A shows all the details of purchases during the return period.

Q. What is Form 2 B in VAT?

Ans. Form 2-B is applicable in Delhi State. It is the annexure which is given to sales tax department along with the VAT return. Form 2-B shows all the details of Sales during the return period.

What is the Form 2C/D?

Ans. The details of sales returns or purchase returns or debit/credit notes relating to purchases and sales are shown under this forms.

Q. What are the Statutory Forms for Central Sales Tax purpose?

Ans. Following are the forms which are required in case of central sales:-

  1.  Form – 1 for Sales Tax Return for Central sales.
  2. Form  2-A for Requisition A/c for Declaration Forms
  3. Form  2-B for Utilization A/c of Declaration Forms
  4. Form 2-C Application of issue of Declaration Forms
  5. Form 3 –  Register of Declaration Forms
  6. Form  4 -Register for Inter-state Sales
  7. Form – 51 for details of C form Received from Purchasers.

Q. What is Central Sales Tax Rate?

Ans. 2% against ‘C’ Form otherwise the local tax rate shall be charged on sales to other states  or purchase from other states.

Q. When the registration with DVAT is mandatory?

Ans. If local sales of any dealer exceeds Rs. twenty lakhs then the registration with Delhi Sales Tax Department is mandatory. In case of Central sales:- if any dealer makes any central sales he has to get registered with Delhi Sales Tax Department compulsorily.  However, any dealer can get himself registered even the local sale is less than Rs.20 lakhs.

Q. What is the time limit for mandatory registration with Delhi Value Added Tax(DVAT)?

Ans. A dealer must apply for registration within the 30 days the moment his Local sales exceeds Rs. Twenty Lakhs or after any central sale.

Q.What are the VAT Rates in Delhi?

Ans. There are different types of VAT Rates in Delhi according to the items. At present the VAT rates are 1% on gold, silver and other precious metals, 5% on utensils, computers, electronics items, communication equipment etc, 12.5%  on general items and 20% on liquor, cold drinks, petroleum items etc. Delhi Government can increase on decrease the VAT rates any time after a proper notification.

Q. What is the time limit for deposit of VAT in Delhi by the dealer.

Ans. The VAT collected during the month, must be deposited on or before 21st of subsequent month.

Q. How the VAT in Delhi can be deposited?

Ans. Amount of VAT can be deposited either on line or directly in authorized banks.

Q. When the VAT return should be filed in Delhi?

Ans. The VAT return should be submitted by a dealer on quarterly basis on or before 25th after the end of the quarter online. A hard copy after duly signed of the return should be deposited on or before 28th after end of the quarter. Now, the digital signature option is also started. if the return is digitally signed then there is no need to file the hard copy of the return.

Quarter for VAT purpose means April to June, July to Sept, October to December and January to March.