VAT / CST - A better understanding - Part 4

SANYAM ARORA (“It's hard to beat a person who never gives up.”) (20173 Points)

01 September 2011

" VAT/ CST - A Better Understanding Part -4 "

So friends this is the 4 th part of my successful series. I know its getting Big, But my aim is to provide all the knowledge regarding Dvat to all the members of cci as well as IPCC/ FINAL students, so that the dont come across any minute problem in the examination hall.

So lets start with it -

In the last part we talked about registration and liability of a registered dealer. so lets continue with it -

Cancellation of registration -

The registration of the dealer can be cancelled in the following cases -

(a) commissioner proposes to suo moto cancel the registration,

(b) The VATO of ward concerned issues a notice in form DVAT 10 for cancellation of registration in the following cases -

(1) A Dealer fails to provide security for a prescribed amount and manner,

(2) A Registered dealer discontinues his business,

(3) An incorporated body is closed

(4) The firm or association is dissolved.

The VATO shall issue notice in DVAT 10 and the dealer is required to surrender the registration certificate within 7 days .

The dealer can file an objection under sec 74 of the Act against the notice before objection hearing authority.

Dealer request for cancellation of registration -

An application for cancellation of registration can be made by the dealer in form DVAT 09 within 30 days of the following events :

(1) Dealer stops his business activities,

(2) An incorporated body is closed.

Payment of Tax and Filing of Return

Every registered dealer is required to file his returns.The periodicity of return depends upon the quantum of T/O done in F.Y starting from 1st apr to 31 march of next year.

S.NO	Gross T/O in previous F.Y	Return period	Tax period

1	Upto 10 lakhs	Annully	Quarterly
2	Above 10 lakhs upto 50 lakhs	Half yearly	Quarterly
3	Above 50 lakhs upto 5 crores	Quarterly	Quarterly
4	Above 5 crores	Monthly	Monthly

When the T/O of a dealer increases or decreases beyond the prescribed limit, he has the option to change his tax period from the 1st day of the following year. For ex. Durin 2006 -07 the dealer is filing quarterly return and during this year his t/o exceeds 5 crores, he is liable to file monthly return from the following year.

The return in DVAT 16 Shall be furnished for each tax period within the time limit prescribed -

Tax period	Prescribed time limit
Yearly return	Within 75 days of closure of F.Y.
six months	Within 45 days of closure of six months of F.Y i.e 30 sept.
Quarter/Months	Within 28 days ( 25 days for e filing