DVT and CST for unregistered dealer

[Rajeev Maurya]

Dear experts, I am new member here, need your valuable advice. I am a unregistered dealer. And I do purchase goods (CCTV dvr camera , EPABX, IP-Pbx, Security system, Access Card Attendance machine, fire alarm system etc. ) from a registered (dvat) dealers as well as unregistered dealers, and further do sales of the same goods to end user or clients in NCR, Delhi, Noida, Faridabad, Gurgaon, I assume this is a interstate sale except the one I do in Delhi. please suggest what is my tax liabilities, if my total turn over remain below ₹ 10 lakh per annum, and how to calculate my taxes so that I can pay to government, I have one savings bank account in hdfc bank Delhi, I do receive cheque payments from clients on my name. what kind of records of sales and purchase I should maintain in this case, please suggest, and I dont have any office I work from rented home is this all legal? Thanks in advance Regards, Rajeev Maurya

[YAGAY andSUN]

Dear Rajeev,

In the Delhi State Budget 2013-2014, the threshold limit for Registration under VAT has been raised from ` 10 lakh to ` 20 lakh. You need not to get the registration, if you have not crossed the threshold limit.

However, if you want to get the registration under DVAT Act, then, you may apply online by going through the following link:-

http://dvat.gov.in/website/home.html

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Rajeev Maurya]

I dont want to go for voluntary registration under dvat and cst.Since I do purchase all goods after paying all the taxes.And I do not bill any tax to my customers. But these all sales are interstate.In this case, can I do my business without dvat and cst registration from Delhi? Please confirm. And how to calculateand show this income so that I can pay my taxes.

[YAGAY andSUN]

Dear Rajeeev,

For CST sales you would have to get the registration. Please check with the DVAT Department under Section 84 of the DVAT Act.

Regards,

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

CST registration required for interstate sales even if VAT registration is not mandatory; ensure compliance and recordkeeping. Unregistered dealers below the VAT registration threshold need not register under local VAT, though voluntary registration is available; however, interstate sales attract CST rules and the respondent advised that CST registration is required even if VAT registration is not mandatory. Maintain sales and purchase records and preserve customer cheque receipts in the dealer's name to support compliance.