INDEX OF FREQUENTLY ASKED QUESTIONS

 

 

Ø      What is Value Added Tax (VAT)?

Ø      What are the departures in Delhi VAT Act in relation to definitions as compared to Delhi Sales Tax Act?

Ø      Which Sales are covered under the Delhi VAT Law?

Ø      Who is a dealer?

Ø      What will happen to the Central Sales Tax Act?

Ø      Are there any Statutory Forms under the VAT?

Ø      What is Taxable Quantum (Basic Exemption)?

Ø      What are the obligations of existing registered dealers during transition? If some dealer is registered under the DST Act, but is not liable for registration under the Delhi VAT Act, what are the provisions in relation to stock as on 31" March 2005 (closing stock)?

Ø      Can input tax credit be claimed on stock of goods on the date of implementation of VAT?

Ø      How is VAT calculated?

Ø      What is tax‑period?

Ø      What is Input Tax?

Ø      What is Input Tax Credit?

Ø      How is input tax credit to be claimed? Is there any requirement of "one to one" correlation between input tax and output tax?

Ø      Will input tax credit be available on all purchases for the business?

Ø      Can input tax credit be availed for purchase of petroleum products?

Ø      What is the applicable rate of tax on Packing Materials as Outputs?

Ø      If goods are purchased for sale on inter‑State basis, are these Creditable?

Ø      Is there any restriction of availing input tax credit on disposal of goods as free gifts?

Ø      Will input tax credit he available on inter‑State purchase?

Ø      If the input is used partly for making taxable goods and partly for exempted goods, whether input tax credit will he available?

Ø      If the input is used for stock transfers to the branch or consignment agents in other States, whether input tax credit will be available?

Ø      Is Input tax credit available on Inter‑State sale of goods?

Ø      Will input credit be available on all capital goods? Will it be available in the year of purchase?

Ø      Will input tax credit be available on capital assets held by dealer on the date of applicability of VAT?

Ø      Is there any tax liability on scrapping any capital asset on which input tax credit has been availed? What     will be the tax implication on sale of such scraped machines?

Ø      Will input tax credit be available on capital goods used in the execution of works contract?

Ø      Whether adjustments in output tax or input tax subsequently are possible?

Ø      What proof is required to claim input tax credit?

Ø      What is an Invoice?

Ø      What is a Tax Invoice and when can it he issued?

Ø      What is a Retail Invoice and when can it be issued?

Ø      For making inter‑State sales, which type of invoice will be issued?

Ø      What happen if the "tax invoice" is lost?

Ø      Is there any composition scheme?

Ø      Who is liable for registration under the Act?

Ø      Are any provisions for voluntary registration?

Ø      What is the due date for payment of tax?

Ø      What is the return period?

Ø      What are the provisions of assessment, in brier

Ø      What are the provisions of refund, in brier

Ø      What types of security will be asked to give refund?

Ø      Is the any mandatory requirement for audit of accounts?