Who is required to file DVAT Return:  Every Registered Dealer is mandatorily required to file a DVAT Return ( on quarterly basis) irrespective of assesses having a turnover or not.

The DVAT return has to be filed by 25th of the following month after every quarter.  Also, the tax, if payable has to be paid by 21st of the following month after every quarter. For instance, the DVAT return for Apr-Jun quarter has to be filed by 25th July. Any output tax, if payable has to be paid by 21st July.

Penalty as per Sec 86(9) of DVAT Act, 2004:  In case of default in filing of DVAT return, penalty shall be levied at the rate of Rs.200 per day ( Rs. 100 if regd only under DVAT and not CST Act)subject to maximum of Rs.50,000. However, default in furnishing both returns (VAT and CST) would attract penalty upto maximum of Rs 1,00,000.

Powers of the Commissioner

 ●        Assessment of Tax Payable u/s 32 of DVAT Act, 2004 (Rule 36) (Form 24): If Assessee defaults in filing DVAT return within time or furnish incomplete or incorrect return or if Commissioner is not satisfied with the return then Commissioner may assess or reassess the amount of tax due after recording the reasons and may also levy interest on tax. Afterwards, the Commissioner shall make and serve a notice of assessment of the tax u/s 32 in Form DVAT 24.

If Assessee disagrees with the notice of Assessment served upon him, then he can file an objection u/s 74 in Form 38.

●          Assessment of Penalty u/s 33 of DVAT Act, 2004 (Rule 36) (Form 24A): The Commissioner after recording the reasons in writing, shall make and serve on the assessee a notice of assessment of the penalty u/s 33 in Form DAVT 24A .

If Assessee disagrees with the notice of Assessment served upon him, then he can file an objection u/s 74 in Form 38.

Objections u/s 74

 ●            If an assessee disagrees with any assessment (discussed above), order or any decision under this Act, then he can raise objections for the same to the Commissioner.

 ●           An objection can also be filed if the Commissioner fails to reach a decision, or issue any assessment or order, undertake any other procedure under this Act within 6 months after a request in writing was served by the person.

For PROCEDURE to file an objection, please click here.

Time Period for raising an Objection  

  ●           Objections u/s 74(1) of DVAT Act, 2004, can be raised within 2 months of the date of service of the assessment or order or decision.

  ●           Objections u/s 74(2) of DVAT Act, 2004, time period shall be no sooner than six months and no later than eight months after the written request was served by the assessee

The Commissioner may accept an objection within a further period of two months if he is satisfied that there was a sufficient cause for not lodging the objection within the specified time.

If the aggrieved person makes a request for hearing then opportunity to be heard in person will be provided. However, if a person fails to attend the hearing on the specified day and time then Commissioner shall proceed and determine the objection in the absence of the person.

Disposal of Objection

The Commissioner shall within 3 months either accept or reject the objection in whole or in part and in either case, serve a notice in writing of the decisions and the reasons for it in Form DVAT 40. The time period can be extended for a further period of two months if the Commissioner notifies in writing to the person objecting within three months of the making of the objection.

If Assessee is not notified within the specified time then he can serve a written notice in DVAT 41 requiring the Commissioner to make a decision within 15 days.

If no decision has been made by the Commissioner by the end of the 15 days then it shall be deemed to have allowed the objection.

Conditions/Restrictions for filing an Objection

●      No objection or appeal shall lie against order mentioned u/s 79 of DVAT Act, 2004.

●     No Objection shall be entertained unless the undisputed amount of tax, interest or penalty assessed has been paid. The Commissioner, after giving an opportunity of being heard, may direct the dealer to deposit an amount deemed reasonable, out of the amount under dispute, before such objection is entertained.

●      Only one objection can be filed against any order, assessment or decision.

●      An objection to an amended assessment, order, or decision shall be limited to the portion amended.

●     No objection shall be made to the Commissioner against an order made under section 84 or section 85 of this Act if the Commissioner has not delegated his power under the said sections to other Value Added Tax Authorities.

Procedure for an Objection

●      First login as a dealer at DVAT site.

●     Then click on Objection Tab and afterwards click on DVAT 38. It asks for Nature of Objection. You may select any one option i.e. Objection against assessment under DVAT or Objection against assessment under CST or objection under the provisions of Sec74(2) or objection against penalty or cancellation of rejection (DVAT 11)

● Then fill the relevant F.Y. and Tax period for which objection is to be lodged. Afterwards order list will be shown from which order can be selected against which objection is to be filed.

● After that a screen will appear which will show form DVAT 38 and we need to fill the following information:

           ●         Date of Service of assessment, order or decision.

●         Whether objections to be raised are within specified time.

●      Amount  of Demand objected – In this, we need to mention the amount of Turnover, Tax, Interest and penalty assessed by Department and the respective amount assessed by the Assessee. Difference amount will be the disputed amount.

●         Select an option to get personally heard or not.

● Then state the grounds for the objections.

●         Write a list of enclosures.

●       Attach the following documents in PDF :1) Copy of notice of Assessment, order or   decision 2) Statements of facts 3) Ground of objection 4) Relief claimed 5) DVAT -39 (if objection is made after lapse of time period) stating the reason for delay in making objection.

●     After submission, an acknowledgement will be generated. Acknowledgement will be required for future reference. Fees for submitting an objection is Rs.100

●    Take the print of Submitted form DAVT 38 along with attached documents and submit three copies at the DVAT Department and also receive an acknowledgement of the receipt of documents at the VAT Office on the fourth copy. 


You might be interested in reading other articles on topics related to the DVAT Act, 2004:

Registration under Delhi VAT Act

Penalties under DVAT Act

Mismatch report after filing the DVAT Retun

Addition of Business Place under DVAT

There has been a recent communication by DVAT deptt. on scrutiny of DVAT returns. Kindly click here to know more.

 Post written by CA Usha Garg. We continuously attempt to update our article as and when any changes occur.

 Note: The firm KL Aggarwal Associates has an extensive experience in filing DVAT returns and dealing with mismatch and filing of objections or other DVAT defaults. Should you need any support, fill the query form below. We would be happy to help.

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