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DVAT – AN OVERVIEW BY SUSHIL VERMA ADVOCATE

DVAT – AN OVERVIEW BY SUSHIL VERMA ADVOCATE. TO ALL MY PROFESSIONAL FRIENDS. DVAT – AN OVERVIEW. WORKING OF VALUE ADDED TAX CLAIM INPUT TAX CREDIT ON ALL PURCHASES FOR BUSINESS INCLUDING MANUFACTURE AND TRADE EXCEPT CST PURCHASE AND PURCHASE AS PER SCHEDULE VII OF DVAT ACT.

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DVAT – AN OVERVIEW BY SUSHIL VERMA ADVOCATE

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  1. DVAT – AN OVERVIEWBY SUSHIL VERMA ADVOCATE • TO ALL MY PROFESSIONAL FRIENDS

  2. DVAT – AN OVERVIEW • WORKING OF VALUE ADDED TAX • CLAIM INPUT TAX CREDIT ON ALL PURCHASES FOR BUSINESS INCLUDING MANUFACTURE AND TRADE EXCEPT CST PURCHASE AND PURCHASE AS PER SCHEDULE VII OF DVAT ACT. • CHARGE OUTPUT TAX ON ALL SALES • OUTPUT MINUS INPUT TAX = NET TAX ( - OR + )

  3. DVAT – AN OVERVIEW • VALUE ADDED TAX CENTRAL SALES TAX ACT • 1. NO CHANGE IN CST WORKING • EFFECT OF CST ON DVAT AND DEALERS IN DELHI • WHY IS CST NOT MADE VATABLE? • DOES IT REALLY MATTER TO TRADERS AND EXPORTERS IF OTHER THINGS HELD CONSTANT AS PER CURRENT SCENARIO? • STOCK TRANSFERS – IS IT A BIG ISSUE?

  4. DVAT – AN OVERVIEW • REGISTRATION AND RETURNS • AUTOMATIC REGISTRATION FOR ALL EXISTING DEALERS UNDER ANY DELHI ACT • COMPOSITION SCHEME FOR DEALERS HAVING TURNOVER BETWEEN 10-50 LAKHS – IMPLICATION • RIGHTS AND DUTIES OF A VAT REGD DEALER • RETURNS, TAX PAYMENTS AND TIME LINES FOR RETURNS. • CASUAL DEALERS – A NEW DEVELOPMENT

  5. DVAT – AN OVERVIEW • REFUNDS UNDER DVAT – AN OVER EMPHASISED FEAR OF TRADE, INDUSTRY AND EXPORTERS? OR COULD IT BE REAL POST-VAT? IMPLICATIONS • JOB WORK OUTSIDE DELHI UNDER DVAT • PACKING MATERIALS AND CONTAINERS. • TIME OF SALE AND PURCHASE – A SERIOUS QUESTION

  6. DVAT – AN OVERVIEW • NEW CONCEPTS INTRODUCED • TAX INVOICE, RETAIL INVOICE, PROFRMA INVOICE. • TAX DEFICIENCY – STUDY CAREFULLY • FAIR MARKET VALUE • TRANSACTION BETWEEN RELATED PARTIES

  7. DVAT – AN OVERVIEW • ANNUAL RECONCILIATION STATEMENT – IMPACT ON CLIENTS, PROFESSIONALS AND THE GOVT. • SECURITY ISSUES UNDER DVAT – For Refunds, For Registration, For release of material and vehicles; for Stay matters – Important Provisions. • Adjustments for Bad Debts.

  8. DVAT – AN OVERVIEW • ASSESSMENTS, REASSESSMENTS, DEFAULT ASSESSMENTS – WHAT IS THIS CONFUSION? • AUDIT UDNER DVAT – VARIOUS TYPES – IMPLICATIONS ON DEALERS AND PROFESSIONALS. • DEEMED DEALERS – A NEW CONCEPT BUT VERY CRITICAL FOR SUCCESS OF DVAT.

  9. DVAT – AN OVERVIEW • CHECK POSTS, BARRIERS AND ENTRY FORMS – CAN DELHI GO FOR THESE RETROGATIVE PROVISIONS OR WILL DELHI DEALERS BEHAVE AND PAY DUE TAXES? • IMPLICATIONS OF ENTRY FORMS – SUCH PROVISIONS IN COMPATIBLE WITH VAT AND MUST FAIL UNDER ALL CIRCUMSTNACES.

  10. DVAT – AN OVERVIEW • SOME ISSUES RAISED BY DVAT • CAPITAL GOODS • SECOND HAND GOODS • PRINCIPAL & AGENTS – REDEFINED.

  11. DVAT – AN OVERVIEW • FINAL FRONTINERS OF DVAT • HAS MERGED ALL OTHER TAXES • IMPLICATIOS OF VAT ON • WORKS CONTRACT • RIGHT TO USE • HIRE PURCHASE • C& F AGENTS • ORGANISED RETAILERS.

  12. DVAT – AN OVERVIEW • VAT AND CHARTERED ACCOUNTANTS • EXTENSIVE AUDIT OF INPUT TAX CREDIT • TREATMENT OF CAPITAL GOODS • TREATMENTAND ACCOUNTING OF ADJUSTMENTS

  13. DVAT DVAT – AN OVERVIEW– AN OVERVIEW • THANK YOU FOR YOUR PATIENT HEARING. HOPE THIS PRESENTATION ADDS VALUE TO YOUR TAX KNOWLEDGE AND UNDERSTANDING. • QUERIES ; sushilverma@touchtelindia.net • www.skvconsultants.com

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