Delhi VAT composition scheme: dealers may opt to pay 1% on turnover with specific eligibility and compliance limits.

A registered dealer may opt for the composition scheme by filing Form DVAT 01 within thirty days of the financial year, paying tax at 1% on turnover, and calculating and paying tax on opening stocks (trading stock, raw materials, packaging and finished goods) using the Part B schedules; ineligible are dealers with turnover over Rs.50 lakh, those transacting outside Delhi, and dealers under the Central Sales Tax Act. Dealers under the scheme cannot issue tax invoices, collect tax, claim input tax credit, or buy from unregistered sellers, must retain purchase and retail invoices for seven years, and may withdraw only at the next financial year unless turnover exceeds Rs.50 lakh during the year, in which case general tax liability arises from that day and the Commissioner must be notified within seven days.

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