By G. G. Goyal, Rajat Talati, Chartered Accountants
C. B. Thakar, Advocate
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VAT
The Government of Maharashtra has recently amended Rules 17,
18 and 81 of the Maharashtra Value Added Tax Rules, 2005. The forms, procedures
and periodicity in respect of filing of returns and payment of taxes have also
been modified. Certain dealers are now required to file e-returns and others may
find their periodicity changed from monthly to quarterly or from quarterly to
six-monthly. However, every dealer shall file his returns in the new format for
all the periods commencing from 1st April 2008
The amended periodicity, for filing returns may be summarised
as under :
|
Sr. No. |
Category |
Periodicity |
|
1. |
(a) Newly registered dealers (on or after 1st April 2008)
(b) Retailers opted for Composition Scheme
(c) Tax liability in the previous year up to Rs.1 lakh or
refund entitlement up to Rs.10 lakhs.
|
6 monthly |
|
2. |
(a) Dealers under Package Scheme of Incentive
(b) Tax liability in the previous year exceeds Rs.1 lakh,
but up to Rs.10 lakhs or refund entitlement exceeds Rs.10 lakhs, but up to
Rs.1 crore.
|
Quarterly |
|
3. |
All other dealers whose tax liability in the previous
year exceeds Rs.10 lakhs or refund entitlement exceeds Rs.1 crore.
|
Monthly |
The due date for filing return and for payment of taxes
continues to be the same i.e., within 21 days from the end of the
month, quarter or six months as the case may be.
The monthly returns are required to be filed for each
calendar month, quarterly returns for each quarter of three months (i.e.,
Apr-Jun, Jul-Sep, Oct-Dec and Jan-Mar) and six-monthly returns for the period of
six months (i.e., April to September and October to March).
The term ‘Tax liability’ has been defined in Explanation I to
Rule 17(4) of the MVAT Rules. Accordingly, it means the total of all taxes
payable by a dealer in respect of all of his places of business or as the case
may be, of all the constituents of his business in the State under the MVAT as
well as the CST Act after adjusting the amount of set-off or refund claimed by
him. Thus, for the purpose of calculating the tax liability, the tax payable at
all the places of business or all the constituents of business are to be
considered and the said amount shall be reduced by the amount of set-off or
refund actually claimed by the dealer.
Change in Return Forms and Electronic Filing of Returns :
(Refer : Government Notification dated 14-3-2008,
Commissioner’s Notification dated 14-3-2008, Trade Circular No. 8T/2008, dated
19-3-2008, 10T/2008, dated 3-4-2008, 16T/2008, dated 23-4-2008 and 17T/2008
dated 5-5-2008 :
- The earlier return-cum-challan forms 221, 222, 223, 224 and 225 have been replaced with the new return-cum-challan forms 231, 232, 233, 234 and 235, respectively. The earlier CST return-cum-challan form has also been replaced by new return-cum-challan Form No. IIIE.
- All returns pertaining to the month of April 2008 as well as the return to be filed in respect of periods starting on or after the 1st May 2008 are to be filed in the new forms.
- Dealers whose tax liability in the financial year 2006-07 was equal to or above Rs.1 crore, have to file their return from February 2008 onwards in electronic form.
- Dealers whose tax liability in the previous year, i.e., 2007-08 was equal to or above Rs.10 lakhs, have to file their return for the month of May 2008 onwards in electronic form.
- Dealers eligible to file electronic return under MVAT Act/Rules should file their Central Sales Tax return in Form IIIE electronically.
- Dealers required to file electronic return shall first make payment of tax in Form 210 or Form IIIE (for CST) and then file electronic return.
- The procedure for filing e-returns has been explained on the new website of the Department at (http://www.mahavat.gov.in). A dedicated help desk is also created at Mazgaon Sales Tax Office to answer the queries pertaining to e-returns. In case of need, the dealer / s may contact the help desk at 022-23735621/022-23735816. Further assistance may be taken from the office of Joint Commissioner of Sales Tax (Returns) in Mumbai or the respective Joint Commissioners of Sales Tax in Mofussil Areas.
Note: The Commissioner of SalesTax,vide Circular dated 23rd April 2008has clarified that in the initial period, it is possible that the dealers may face some difficulties in preparing and uploading the electronic return. Considering the difficulties likely to be faced by these dealers, a concession is provided by allowing the dealer to upload the e-return within 10days from the due date for the filing of respective return. This concession shall be only for the return/ s to be filed for month of May 2008 to that of September 2008. The e-return for these months uploaded within 10 days from their due date will not be treated as late, provided the payment of due tax is made on or before the due date for normal filing of paper returns.
The applicability of new return forms may be tabulated as under:
Separate v. Consolidated Filing of Returns:
The provisions for filing separate returns [Rule 17(2) (c)] have been deleted in the recent amendment to the MVAT Rules. As a result, now dealers can’t file separate returns. Thus dealers who are having more than one place of business or who is having more than one constituents of business is required to file only one consolidated return, as per the applicable periodicity, for all the places of business or constituents of business, subject to the following exceptions:
i) If a dealer is holding an Entitlement Certificate and also carrying on other business activity, then he is required to file more than one return in respect of his other activity,
ii) If a dealer is a PSI unit or a notified oil company and also in the business of execution of works contract, transfer of the right to use any goods for any purpose or has opted for composition for part of his business, then in addition to return in Form 234 or 235, he shall also I file a separate return in Form no. 233.
Revised Return :
The revised return can be filed before the expiry of the period of nine months from the end of the year containing the period of such return or before the issuance of notice for assessment for that period, whichever is earlier.
As per the provisions of S. 32(3) of the MVAT Act, read with Rule 17(2)(d) of the MVAT Rules, it is specifically provided that, in case of revised return, the dealer shall first pay tax (in Challan Form No. 210) in Government Treasury and attach a self-attested copy of the paid Challan with the revised return, which shall be filed with the appropriate registering authority.
Prescribed Authority:
As per Rule 17 of the MVAT Rules, the prescribed authority, with whom a dealer is required to file his return/ s are as follows:
i) When tax is payable for any period, the return for that period shall be filed in Government Treasury as defined in Rule 2(f) of the MVAT Rules 2005.
ii) When tax payable is NIL or REFUND, then return shall be furnished to the registering authority within whose jurisdiction the principal place of business is situated. (In Mumbai, all such returns are to be filed at specific counters provided for the purpose at Vikrikar Bhavan, Mazgaon.)
iii) In case of non-resident dealer, if tax payable is NIL or REFUND, then the return shall be filed with the registering authority, Non-Resident Registration Circle, Mumbai, if the dealer is registered by such authority.
iv) PSI dealer shall file returns with the registering authority having jurisdiction over respective place of business of the dealer, in respect of which he holds a certificate of Entitlement under any PSI covering all the sales and purchases relating to the eligible industrial unit. However, it is provided that if tho dealer is holding two or more Entitlement Certificates, then he must file the returns with the registering authority, which has jurisdiction over the place of business pertaining to the Entitlement Certificate whose period of entitlement ends later.
It may be noted that S. 20 of the MVAT Act requires every registered dealer to file a correct, complete and self-consistent return and Rule 20 of the MVAT Rules clarifies that return/ s shall be deemed to be complete and self-consistent, only if the returns are filed:
- for the specified period,
- within the prescribed time,
- to the prescribed authority, and
- all the columns of the return form are filled properly.
Defect Memo & Fresh Return :
In case of an incorrect/incomplete or inconsistent return, the Sales Tax authority can issue a defect memo, u/s.22 of the MVAT Act. Such defect memo is prescribed in Form No. 212 and it can be issued within four months from the date of filing of the return. On receiving a defect memo, the dealer is required to file a Fresh Return.
The Registered Dealer, to whom such defect memo is issued, shall file a fresh correct, complete and self-consistent return within one month of the service of such defect memo. If the dealer fails to file the fresh return within one month, then such a dealer may be treated as defaulter in filing of return and it will be presumed that the dealer has not filed the original return at all within the prescribed time and thus he may be liable to face penalty provisions. It may be noted that the defect memo issued in Form No. 212 is not challengeable in appeal.
Penalty for Non-filing or Late Filing of Return/s:
The Government of Maharashtra has recently amended S. 29(8) of MVAT Act, 2002, whereby the penalty for non-filing and late filing of return/ s has been enhanced. As per the amendment, (which shall come into force from a date to be notified), if the return is filed before the initiation of the proceedings for levy of penalty, then the penalty shall be levied at rupees five thousand, instead of rupees one thousand as provided earlier. In other cases, the amount of penalty imposable is increased from rupees two thousand to rupees ten thousand.
