New Composition scheme under Delhi Vat
Notification of New Composition scheme under Delhi Vat
A new composition scheme has been notified under the Delhi VAT Act Vide Notification No. F.3(29)/Fin(Rev-I) 2015-2016/dsvi/93 dated 18.3.2016 with effect from 1.4.2016 .
New Composition scheme under Delhi Vat :- Eligibility
For every registered dealer –
(i) whose turnover during the preceding year as well as expected turnover during current year does not exceed Rs.50 lacs; and
(ii) who is not making any sales other than that of ready to eat foods and non-alcoholic beverages including cooked food, snacks, sweets, savouries, juices, aerated drinks, tea & coffee etc. and served in or catered indoors or outdoors by hotels, restaurants, sweet-stalls, sweet shops, clubs, caterers & any other eating houses.
New Composition scheme under Delhi Vat :Rate of Tax
Eligible Dealer satisfying the eligibility conditions may elect for the new composition scheme and pay tax @ 5% of the entire turnover.
New Composition scheme under Delhi Vat :Conditions /Restrictions
(a) Dealer shall not be eligible for making purchases from or procuring goods from or making sales to or making supplies to any place outside Delhi;
(b) Dealer shall not be eligible for making purchases from a person who is not registered under the DVAT Act except in the case of goods specified in the First Schedule;
(c) Dealer shall not be eligible to claim tax credit under section 9 of the Act;
(d) Dealer shall not calculate his net tax under section 11 of the Act;
(e) Dealer shall not collect any amount by way of tax under the Act;
(f) Dealer shall not be entitled to issue ‘Tax Invoices’.
(g) Dealer shall continue to retain the original copies of all tax invoices and all retail invoices issued by him in respect of his sales as required under section 48 of the act.
New Composition scheme under Delhi Vat : Option for Dealer paying tax under section 3
A registered dealer, who is paying tax under section 3 of the Act (as a normal dealer), can opt for payment of tax under this scheme by filing an application in Form RH-01 within a period of 30 days from the first day of the year with effect from which composition is opted.
New Composition scheme under Delhi Vat : in case of fresh registration
A dealer applying for a fresh registration can also opt for this scheme by filing application in Form RH 01 along with his registration application in Form DVAT 04
- Delhi Govt Composition Scheme for Hotels / ready to eat food seller
- Delhi restaurants & Halwais, migrating to new composition scheme, need not to pay tax on opening stock
- Delhi restaurant/ halwai to stop composition @ 1% u/s 16(1) (old Scheme)