REGISTRATION UNDER DVAT

[CS RAHUL AGARWAL]

Dear Experts,

An assessee in delhi having nil turnover in intra state and inter state, who imports goods to india and without entering such goods in delhi are sold to outside india directly from the port where such goods are imported. Billing and execution of order is done from delhi. In that case whether such dealer is required to be registered with DVAT ? Will they be dealer as per DVAT? S. 5 of cst which applies to this case, still such assessee needs to be registered with local tax authority?

[Ganeshan Kalyani]

Sir, in my view registration is compulsory. If you are dealing with Nil rated goods or exempted goods even then registration is necessary. This is my view. Thanks.

[CS RAHUL AGARWAL]

Absolutely Sir. Even in case of NIL turnover the dealer is under mandate to get registered. But here the point for consideration is different.

Clause (j) to Section 2 of DVAT defines the term Dealer as under:

(j) "dealer" means any person who, for the purposes of or consequential to his engagement in or in connection with or incidental to or in the course of his business, buys or sells goods in Delhi directly or otherwise, whether for cash or for deferred payment or for commission, remuneration or other valuable consideration and includes…………………..

The assessee in our case neither has any purchase nor any sale within the boundaries of Delhi. The imported goods are directly sold by way of export. The goods so sold (to foreign country) are directly shipped from the port of lading. In this view, accordingly i concludes that the assessee is not a "dealer" in terms of DVAT and hence the registration is waived-off. Any further deliberation in this issue shall be helpful.

[Ganeshan Kalyani]

Sir, in the sentence marked in red by you, read the word 'otherwise' you will acknowledge that the nature of transaction carried by your assessee is squarely covered by the provision. Thanks.