12 January, 2016

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DVAT Makes Form C Auto Download More Strict–Limits on Sale to Purchase Ratio of Above 45%

DVAT Makes Form C Auto Download More Strict–Limits on Sale to Purchase Ratio of Above 45%

In a Move which is potentially aimed to address leakage / evasion, the DVAT authorities have decided vide No.F.3(556) / Policy / VAT / 2015 / 1271-82 dated 8-1-2016 not to allow auto download facility of Form C only in cases where the ratio of sale to purchase, including stock transfer and local transactions, falls below 45%.

 The statutory forms in such cases shall be available for auto-downloading on the basis of sale and purchase of next quarter. In other words, ratio of sale to purchase shall be worked out for both the quarters cumulatively. If the ratio still falls below 45%, then forms shall be allowed to be downloaded on the basis of sale to purchase ratio of third quarter and so on.

The purchase of capital goods shall be kept out of the proposed mechanism which shall be available only to eligible dealers. The download of forms shall also be further subject to the following checks/in addition to conditions laid down in the aforesaid Rules

1. Items should be allowed on the R.C.
2. The dealer for whom forms are obtained should not be cancelled dealer.
3. There is no adverse material on record.


Rest of the Conditions of 2012 Notification to remain in place.

Full Text of the Notification is as under:-
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