Norms for Scrutiny of DVAT Returns

Norms for Scrutiny of DVAT Returns

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

Normally a return furnished under the DVAT is treated as self-assessed as per provisions of section 31 of the DVAT Act, 2004. However, the DVAT Deptt has notified norms vide Circular 40 of 2015-16 dt. 8th March 2016 for selection & scrutiny of DVAT returns of certain type of dealers, mostly the unscrupulous dealers indulging in evading taxes to protect revenue stakes.

The DVAT Deptt has directed its Ward Officers to keep a watch on following classes of dealers’  along with the advisory to safeguard the revenue:

  • newly registered dealers showing sharp vertical growth in GTO;
  • dealers downloading statutory forms of huge amount without showing matching sale/stock transfer;
  • frequent change in trade practice / commodities;
  • circular  trading;
  • dealers stopping return filing within a period of less than an year of registration;
  • dealers applying for cancellation within a year or so, of registration;
  • dealers filing ‘Nil’ GTO return continuously for a period exceeding one year;
  • return defaulters
  • frequent refund claimants
  • non-tax payers
  • continuously carrying forward excess ITC for a period exceeding one year;

Further, as per the directive, while cancelling registration of a dealer, all dues should 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.

DVAT Circular 40 of 2015-16 dt 8 Mar 2016

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