You are required to register under DVAT if:

• Your turnover in the year preceding the commencement of the DVAT Act exceededRs. 5 lakhs;
• Your turnover in the current year exceedsRs. 5 lakhs;
• You make any interstate sale; or
• You make interstate purchases for resale in Delhi.

For registration purposes, your turnover does not include

• Sales of capital assets;
• Sales made in the course of winding up your business; and
• Sales made in the course of a permanent diminution of your business.

In the case of dealers involved in the execution of works contracts, the turnover includes the total contract amount.

If you are not already registered, your obligation to register and pay tax starts on the day when your turnover exceedsRs. 5 lakhs, or you make an interstate sale or purchase. You need to apply for registration within 30 days, once you cross these thresholds.

If you deal entirely in exempt goods, you are not required to apply for registration under DVAT.

If you are making sales to other registered dealers in Delhi, it may be beneficial for you to apply for registration even if your annual turnover is less thanRs. 5 lakhs. Registration will allow you to issue tax invoices and claim tax credits. The tax that you charge on your tax invoices can, in turn, be claimed as a credit by your customers who are registered dealers. To accommodate such situations, the legislation allows you to apply for voluntary registration, if you fall outside the conditions for mandatory registration.

If you have more than are one place of business, you can apply for a single registration.

Registration for Dealers Already Registered Under DST/CST

To facilitate transition to the new system, if you are already registered on 31st March 2005 under the Delhi Sales Tax (DST) Act, Delhi Sales Tax on Works Contract Act, Delhi Sales Tax on Right to Use Goods Act and/or the CST Act, we will automatically register you under DVAT. However if you are registered only under DST and your turnover in 2004-2005 is less thanRs. 5 lakhs, you may write to us to not automatically register you under DVAT.

How to Register?

An application for Registration is to be made in Form DVAT-04 with the prescribed fee.

A security not exceedingRs. 1 lakh is to be submitted along with the application for registration. The security amount can be reduced by a maximum ofRs. 50,000 if you can provide certain documents with your registration application. The reduction in the security amount allowed for various documents is as follows.

• Last paid electricity bill in your name,Rs. 10,000;
• Last paid telephone bill in your name,Rs. 5,000;
• A PAN number,Rs. 10,000;
• A document as proof of ownership of principal place of business,Rs. 30,000;
• A document as proof of ownership of residential property,Rs. 20,000; and
• A notarized photocopy of the passport of proprietor/ managing partner or managing director,Rs. 10,000

Security may be in cash, bank guarantee, post office cash certificates, bonds/debentures, dealers' surety, or mortgage of immoveable property. The surety for registration may be revised by the Commissioner under some circumstances.

When Will You be Registered

If you do not hear from us within 15 days of making your application, you are automatically registered and will be entitled to receive a registration certificate in Form DVAT-06 from the Commissioner. Once you are registered, a Tax Identification Number (TIN) will be issued by us, which you should quote in all dealings with us to help us process your tax affairs correctly and promptly.

If you are not registered within 15 days of making the application, you will receive a notice in Form DVAT-05 from the Commissioner, setting out the reasons why your application is proposed to be rejected.

You can respond to this notice within the time provided in the notice. If you do not respond to the Commissioner's notice, your application for registration will be rejected automatically.

If the Commissioner is satisfied with your reply, he will register you and issue you a Registration Certificate in Form DVAT-06.

If your application is rejected, you can object to the decision within two months.

After registration, you may expect a visit from a DVAT official who may verify the particulars of your business.