Unregistered Dealer Delhi VAT Documentation

[V K]

Dear Experts

Kindly give your expert advice on the following queries related to Unregistered Dealer under DVAT.

( below the Taxable Limit of 20 lakh)

1) Bill / Cash memo issued by unregistered dealer should have to mention it on Bill that he is Unregistered dealer under the limit of taxable turnover.

2) can he sale all the goods or only Tax Free Goods?? . he has purchased both types of goods from Unregistered dealers , as well as from Registered dealers by paying tax.

3) any type of Documentation to be submitted to Sales tax Dept.??

4) Accounts / records to be maintained for Sales TAx / Income tax.

5) can he claim the Exp of business in Income tax, as per Regular registered Proprietorship firms?

6) is he has to appoint any CA for any mandatory Reports, which can be signed only by CA.

Awaiting for your expert advice.

Regards.. Vikas Kapoor

 

 

[YAGAY andSUN]

Replies to your queries:

1. You would have to mention on each and every invoice that you have not crossed the threshold limit till the time you touch it.
2. You may sell all goods i.e. Tax Free and Taxable.  But if you are dealing in exclusively in Tax Free goods, then, despite of crossing the threshold limit, you need not to get the registration under DVAT Act.
3. Financials along with Bank Statements may be submitted to show your bonafide to DVAT Department.
4. Financial duly certified by the CA would be sufficient in this regard.
5. Yes, but your CA will guide you on this aspect.
6. Yes, if you appoint a CA then it would be better to explain the financial in a better and honest manner to the DVAT and Income Tax Department.

AI Summary

Unregistered dealer disclosure: invoices must state below threshold status and certified financials support VAT and tax compliance. Unregistered dealers must state on each invoice that they have not crossed the statutory threshold. They may sell both taxable and tax free goods, while exclusive dealings in tax free goods exempt registration even if thresholds are crossed. Dealers should maintain and submit financials and bank statements to the VAT department, and financials certified by a Chartered Accountant are acceptable. For income tax, business expenses may be claimed as for a regular proprietorship, and engaging a Chartered Accountant is advisable for certified reports and compliance guidance.