Last Date for Physical Submission of MVAT Audit Report in Form 704 for F. Y. 2011-2012

TRADE CIRCULAR

N0.704 Cell/LDPS/AR/11-12/ File No. 88 Mumbai, dt. 15.01.2013

Trade Cir. No 2T of 2013

Sub : Last Date for Physical Submission Audit Report in Form 704 for the financial year 2011-2012

Ref: 1) Government Notification No. VAT/ AMD -1009/1B/Adm-6 dated 26th August, 2009.

2) Trade Circular No 27T of 2009 dated October 2009.

3) Trade Circular No 16T of 2011 dated 11th November, 2011

4) Government Notification No: VAT-1512/C R- 139/Taxation- I dated 21st November 2012

5) Trade Circular No 19T of 2012 dated 9th November, 2012

With reference to above, the dealers who are required to file audit report u/s 61 of MVAT Act, 2002 for the financial year 2011-2012, besides filing the audit report, should also furnish following documents.

i. A statement of submission of Audit Report in the format given in the circular 27 T of 2009

ii. A duly signed copy of Acknowledgement generated after uploading of Audit Report in Form-704

iii. A copy of Part-I of the Form-704 alongwith certification duly signed by the Auditor.

The aforesaid documents shall be submitted:-

A. In case of Mumbai

I. to the concerned LTU officer, if the dealer is Large Tax Payer,

IL to the 704 Cell at Vikrikar Bhavan, mazgaon, Mumbai if the dealer is not a Large Tax Payer.

B. In case of rest of the State

I. to the concerned LTU officer, if the dealer is Large Tax Payer,

II. to the Joint Commissioner of Sales Tax, VAT (ADM), if the dealer is not a Large Tax Payer

The last date for submission these documents, for the financial year 2011-2012, is 28th January, 2013.

This circular cannot be made use of for legal interpretation of Provisions of law, as it is clarificatory in nature. If any member of the trade has any doubt he may refer the matter to this office for further clarification.

You are requested to bring the contents of this circular to the notice of all the members of your association.

(Sanjay Bhatia)

Commissioner of Sales Tax,

Maharashtra State, Mumbai.

New MVAT and CST Returns Template Ver 1.5.0 which includes provision for Late Fees

As the LATE FEE is made effective from 1st August 2012, the return templates are revised to include the same as well as inclusion of purchase tax payable and accordingly NEW version 1.5.0 is introduced from today for all MVAT and CST Returns.

All are requested to use the new version 1.5.0 to upload the returns.

The new versions can be downloaded from "Downloads –> Electronic Forms" section on Department's website http://mahavat.gov.in  

E-payment mandatory to all PTRC Holders

From 1st July 2012 e-payment is mandatory to all PTRC Holders

MVAT Circular – Disallowance of Input Tax Credit

TRADE CIRCULAR

Date: 21/06/2012

No.VAT/MMB-2012/52/Adm-8

Trade Circular No. 8T of 2012

Sub: -Judgment of the Hon’ble Bombay High Court in case of M/s, Mahalaxmi Cotton Ginning Pressing and Oil Industries, Kolhapur

Gentleman/ Sir/Madam,

The claims of Input Tax Credit [ITC] under the Maharashtra Value Added Tax Act, 2002 are allowed as per the provisions of section 48(2) and section 48(5) of the MVAT Act. The section says that the Input Tax Credit [ITC] cannot be granted unless the tax on the earlier stages has been received in to the Government Treasury. For the financial year 2008-2009 onward, the verification of Input Tax Credit [ITC] claim is being carried out electronically. The ITC claim in annexure J2 of Form 704 is allowed to the extent of amount matched with the supplier’s sales figure of annexure Jl. The ITC claim to the extent of unmatched data is being disallowed. The action of the department to disallow the ITC claim on the basis of electronic matching of data as well as Constitutional validity of section 48(2) and section 48(5) of Maharashtra Value Added Tax Act,  2002 was challenged in number of Writ Petitions before Bombay High Court.

The Hon’ Bombay High Court upheld the action of Sales Tax Department of rejecting the ITC claim on the grounds of non-payment of tax by the seller as shown by the system in the Writ Petition No. 33 of 2012 decided on 11thMay 2012 in the case of M/s Mahalaxmi Ginning and Oil Industries. The Court also upheld the Constitutional validity of the section 48(5) of the MVAT Act. The Court discussed and distinguished the decision of Punjab and Haryana High Court in case of M/s Gheru Lal Bal Chand.

In view of this, the position of department regarding allowing/disallowing of Input Tax Credit Claim is:-

  1. No    Input   Tax   Credit   claim   shall   be    allowed   unless    the corresponding   tax   is   paid   by   the   selling   dealer   into   the Government treasury.
  2. In the case of mismatch in the sales and purchases in electronic matching of annexure Jl and J2 of form 704, then to the extent of unmatched amount of tax, the ITC of the claimant dealer shall be denied.
  3. ITC claim shall not be allowed if the purchases are effected from hawala dealer and even though such hawala dealer has paid the taxes partially or fully as these are not genuine transactions.

This  being the  position  regarding  Input Tax  Credit,   the  department will, however, simultaneously undertake following actions:-

1.      The Sales Tax Department will identify the Defaulters namely, registered selling dealers who have not paid the full amount of tax due in the Government Treasury either by not filling their returns at all or by filing returns but riot paying the full tax due [i.e. “short filing”) or where returns are filed but sales to the concerned dealers are not shown (i.e. “undisclosed sales”).

2.      Wherever possible, departmental authorities shall take all actions against the defaulting dealers. At the end of each year a reconciliation of such tax recovered from the selling dealer will be carried out and the credit of tax which had been denied earlier will now be given to the purchasing dealer.

3.      The department will display a list of all non-filers of returns / short filers, late filers period wise, from year 08-09 on the website of the department. This list will be updated at the end of each month.

4.      For period from 2008-09 to 2010-11, after submission of Audit report in Form 704, if dealer has revised his return for any of the contingencies, he will be allowed to submit revised annexures Jl and J2 with the approval of the concerned officer.

5.      For the periods from 2008-09 up to 2010-11, the department will compile a list of all cases where  Input Tax Credit has  been disallowed for the reasons of mismatch.

In these periods the dissallowance of Input Tax Credit claims is mainly on following accounts -

a)      Selling dealer is non-filer of returns.

b)      Selling dealer has not filed 704 though liable to do so.

c)      Selling dealer is not liable to file 704.

a)      In case of non-filer / short filer, all possible actions are to be taken against such defaulting dealer as per the provisions of law as applicable.

b)      In case of the dealer who has not filed 704, action to levy penalty and prosecution shall be initiated. Such cases will be taken up for scrutiny by e-704 division in Mumbai and respective offices in other places. The dealer will be asked to file audit report along with annexures Jl and J2. The information corresponding to Jl and J2 obtained during desk audit shall be Unloaded on the system by the dealer with the approval of concerned officer.

c)      Where the dealer has filed all the returns and paid all the taxes as per returns and is not liable to file 704 , the Input Tax Credit claims against such selling dealer will be allowed on the basis of results of Mahavikas utility developed for this purpose, subject to such cross checks or sample checks as department may deem fit.

6.      On receipt of the Form 704 and annexures Jl and J2 from all the dealers for the years 2011-12 onwards, a process will be run on the “MAHAVIKAS” system for match/mismatch data of turnover and tax for all the dealers. The result of match/mismatch along with details of unmatched shall be communicated to every dealer on his email. Subsequently, if such defaults are made good, the system shall be updated and the process will be re-run at the end of the year and the earlier denied credit will be allowed to the purchasing dealer as refund or carry forward such available refund.

This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.

You are requested to bring the contents of this circular to the notice of the members of your association.

Yours faithfully

(SANJAY BHATIA)

Commissioner of Sales Tax,

Maharashtra State, Mumbai.

Suspicious Dealers List – Released by Sales Tax Dept – Update May12

Hawala_List__May_12_WEB-2.xls
Download this file

Latest list of Suspicious Dealers as released by the Maharashtra Sales Tax Dept.

MVAT Notification – ECS of Refund & Mandate form

FINANCE DEPARTMENT

Madam Kama Road, Hutatma Rajguru Chowk Mantralaya, Mumbai 400 032, dated 20th April 2012

NOTIFICATION

MAHAHASHTRA VALU ADDED TAX 2002.

No. VAT, 1512/ CR 48/ Taxation-1. – In pursuance of the powers conferred by clause (b) of rule 45A of the Maharashtra Value Added Tax Rules, 2005, the Government of Maharashtra, hereby specify that, with effect from the 1st May 2012, the refund, if any, due under the Maharashtra Value Added Tax Act, 2002, to the registered dealer or Diplomatic Authority or International Body or Organisation, having hank account in Electronic Clearing Services enabled bank and who submits his mandate in Annexure A of this Notification to the Commissioner of Sales Tax, shall be credited to his bank account by way of the Electronic Clearing Services of the Reserve Bank of India. 

ANNEXURE – A

Electronic Clearing Service (Credit Clearing) Mandate Form

[Dealer's option to receive payments through Electronic Clearing Service (Credit.) Mechanism]

Name of the Scheme : Maharashtra Value Added Tax Electronic Refund Scheme
1. Dealer’s        (a) Name :  
                        (b) VATTIN :  
2. Particulars of Bank Account    
(A)     Name of the Bank :  
(B)     Branch:

            Address :

            Telephone No.

 

 

:

 
(C)     Branch Code (TFS Code)    
(D)     Type of the Account (S.B., Current or Cash Credit)   with code (10/11/13/29/30/31)

New MVAT E-annexure for dealers not liable to VAT Audit Version 1.2

Please use the new version 1.2 of MVAT E-annexure to be uploaded by dealers not liable to VAT Audit.

These forms can be downloaded from - 

MVAT Circular : Carry forward of refund upto Rs. 1 lakh for FY 11-12 to FY 12-13

TRADE CIRCULAR No.VAT /AMD-1012/lB/Adm-8, Date: 21/04/2012 

Trade Cir. No.6T of 2012

Sub:   Carry forward of the refund upto Rs. 1 lakh for the financial year 2011-12 to the F.Y. 2012-13

Ref:

(1) Trade Circular No.15T of 2010 dated 15.4.2010.

(2) Trade circular No.6T of 2011 dated 15.4.2011.

Gentlemen/Sir/Madam,

You are aware that the sub-section (2) of section 50 of the Maharashtra Value Added Tax Act, 2002 prohibits the carry forward of the refund for the return period ending March-2012 of Financial Year to first return of the next Financial Year i.e. 2012-13.

2. In view of the difficulties that are being faced by the trade, it was administratively decided to allow carry forward of the refund for the return period ending March-2009 to first return of the next Financial Year i.e. 2010-11 and likewise this concession was also provided for the year 2011-12 vide Trade Circulars cited at reference.

3. The department has received representations from the Trade and Associations with a request to allow the carry forward of the refund claim for the return period ending March 2012 to the next year 2012-13.

4. In view of the above, it is decided on the administrative grounds to allow carry forward of the refund claim upto rupees one lakh for the return period ending March-2012 to the first return of the next financial year i.e. 2012-13. In case, any dealer, who has already filed the claim of refund, for the period/ periods of 2011-12 in Form-501 and desires to withdraw such claim so as to carry forward his refund then such dealer shall file a revised return showing carry forward of such refund. It would be necessary for him to make an application to the concerned authority for withdrawal of refund application in Form 501 In other words, the concession to carry forward the refund as stated above will be considered only if the application for refund is withdrawn.

5. This circular cannot be made use of for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of trade has any doubt, he may refer the matter to this office for further clarification.

6. You are requested to bring the contents of this circular to the notice of all the members of your association.

Yours faithfully

(Sanjay Bhatia)

Commissioner of Sales Tax,

Maharashtra State , Mumbai

MVAT Refund less than Rs.1 Lac for FY 11-12 may be carried forward to FY 12-13

MVAT Refund claim of less than Rs.1,00,000/- for return period ending March 2012 may be carried forward to the first return of the F.Y. 2012-13.

Notification / Circular Awaited.

NEW MVAT and CST Return Templates

The Department of Sales Tax, Maharashtra State has introduced the new version 1.2.5 of MVAT Returns Formsand new version 1.2.6 of CST Return Form and the same are required to be used for submission of March 2012 returns and onwards. The same can be downloaded from Website of Department of Sales Tax, Maharashtra.

Due Dates for March 2012 MVAT Returns

For Dealers liable for VAT Audit, Due date is same i.e. 21st April, 2012 or within 10 days from due date in the case of Monthly and Quarterly Returns and 30th April, 2012 or within 10 days from due date in the case of Half-Yearly Returns.

For Dealers NOT liable for VAT Audit, Due date is extended till 30th June, 2012.

For All Dealers Payment Due date is same i.e. 21st April, 2012 in the case of Monthly and Quarterly Returns and 30th April, 2012 in the case of Half-Yearly Returns

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