DVAT Returns - Scrutiny

DVAT Circular 40  of  2015-16  dtd.  8th March 2016

DVAT return furnished by the assessee is treated as self assessed as per provisions of section 31 of DVAT Act, 2004. For the safeguard of the revenue and to visualize the modus operandi of unscrupulous elements, the D-VAT department is contemplating to begin a serious actions against certain assesses. This has been informed vide Circular No. 40 of 2015-16 dated 08/03/2016.

The type of assesses against whom action/ scrutiny is planned is:-

  1. Newly registered dealers who are showing high growth in GTO.

  2. Dealers downloading statutory form without matching sale/stock transfer.

  3. Frequent changes in items being dealt.

  4. Circular trading

  5. Dealers who stop filing DVAT returns after registration or who are filing NIL returns for a period exceeding one year

  6. Continuously carrying excess ITC or claiming refund

  7. Non tax payers

  8. DVAT dealers who are applying for cancellation within a year or so, of registration


Also, while cancelling DVAT registration of a dealer, all dues would be checked and assessment may preferably be framed wherever required. Though, assessment can be framed after cancellation but notice of assessment may be served upon the person at the address given in the cancellation application, for future correspondence.

Also, department is soon beginning recovery proceeding for those assessees who have not filed any objection for the mismatch.


The DVAT assesseses should ensure that they are not resorting to above mentioned measures, or unethical trade practices.


For more information on Process For Addition Of Business Place under DVAT returns. Kindly click here .

For more information  on  Registration under DVAT returns. Kindly click here .

For more information on Mismatch Report after filing the DVAT returns. Kindly click here .

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