CA Vinod Kaushik

CA Vinod Kaushik

Year end trouble is coming ahead:-

Before the article goes into its technicalities it is worth to remind you about the budget of Delhi Govt. presented by Deputy CM Mr. Sisodia and the budgeted receipts for FY 2015-16 were Rs. 41500 Cr. out which Rs. 24000 Cr. was from VAT and as per reports till first week of January 2016 the Govt. has collected Rs. 14720 Cr. meaning hereby deficit of Rs. 9000 Cr. need to be collected in just 02 and half month. The refunds are going to be great targets for professionals as well as dealers and movement of goods need to be supported by complete documents as prescribed under rule 43 of Delhi VAT rules, 2005. As per the news published in Times of India 10000 vehicles has been inspected in December 2015 which resulted in raising penalty of Rs. 50000 in 783 cases. Now the objective of writing this article is to give you the authentic information about the documents which need be carried by a transporter, owner of vehicle or vehicle in charge and list of which a dealer should maintain to avoid penalties under Delhi VAT.

Meaning of proper documents under Delhi VAT:-

The owner, driver or person in charge of a goods vehicle shall carry with him such documents as prescribed by the department and need to produce the same before any officer authorized for such purposes by the Commissioner. As per rule 43(1) of VAT rules following important documents need to be carried by the transporter along with the goods.

  • Goods transport receipt in form DVAT-32 ( GR must contain all the particulars of dvat-32)
  • Sale invoice or delivery note in form DVAT-33.
  • Export declaration in form DVAT-34. ( Yet to be notified by the commissioner)
  • Import declaration in form DVAT 35. ( Yet to be notified by the commissioner)
  • Transit slip in form DVAT-35A if goods are intended to be transit through Delhi (Yet to be notified by the commissioner).
  • Form DS-2 hard copy or soft copy as the case may be. ( Notified by the commissioner vide notification dated 08-01-2016)

What is your right in case vehicle is intercepted?

As per rule 65 of Delhi VAT rules the driver, owner or person in charge of a goods vehicle can ask VAT officer to produce his authorization in form DVAT-50. The important point which we must verify is the validity of such authorization certificate as same can be valid for 3 years from the date of its issue. Further as per section 63 of DVAT Act, 2004 the person authorized by the Commissioner shall issue a seizure memo and vehicle detainment order which shall contain the reasons for detainment of vehicle and also the list of documents found available with the owner, driver or person in charge of goods vehicle. The above documents shall be useful at the time of release of goods vehicle.

Documents which must be available with dealer at his premises:-

As per rule 42 of Delhi Vat rules, 2005 following documents must be kept by a dealer in order to avoid penalties under law:-

  • Sale and Purchase invoices.
  • Form DVAT-30 and DVAT-31.
  • Documents in support of movement of goods i.e. GR/RR.
  • DVAT and CST return filed along with challans for payment of taxes.
  • Copy of balance sheet, cash book, stock register etc.

Common deficiency observed at the time of vehicle inspection:-

It is important to avoid the below deficiency while goods are received or delivered in the state of Delhi. These deficiency are very common in nature and must be avoided while moving goods from or to Delhi.

  • Vehicle carrying goods without proper documents ( As discussed in previous paragraphs)
  • Improper entries in the sale invoice
  • Vehicles plying on a deviant route than the commonly used route for movement from place of origin, as mentioned in GR, to destination
  • Vehicles carry different quantities/types of goods than those mentioned in the documents
  • The documents point to undervaluation of the goods than prevailing value of the goods

Closing comments:-

Every effort should be made to avoid the deficiencies in the documents maintained at the premises of the dealers and also with goods vehicle. Rule 42 and 43 must be followed in true spirit and form DS-2 must be available with transporter while entering the physical boundary of Delhi. Non availability of proper documents may result in detention of goods vehicle which is released after payments of due taxes and penalties under section 86(19) of the DVAT Act, 2004.

(Author can be reached  at, +91-9953236278)

Disclaimer: Views expressed are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.

More Under Goods and Services Tax

Posted Under

Category : Goods and Services Tax (8052)
Type : Articles (18224)
Tags : CA Vinod Kaushik (38) Delhi VAT - DVAT (403) Vat (225)

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured Posts