TRADE CIRCULAR
To,
------ ----- ---- ---- ----
---- ----- ----- ---- --- ---
No. :- ACST VAT-1/Refund/ B- 422
Dt : 10th October, 2008.
Trade Circular No. 35 T of 2008.
Sub : Voluntary Refund scheme.
Ref : Trade Circular 56 T of 2007, dated 23/08/2007 .
The procedure for grant of refund in the cases, wherein the net worth of business is substantial, the applicants have continuous and large claims of refund or the dealers are major exporters and those dealers who have extensive distribution network all over India , has been prescribed in Trade Circular 19 T of 2008, dated 23/05/2008 .
In order to make available the benefit of fast refund scheme to additional dealers, a new refund scheme called the Voluntary Refund Scheme is now devised. The dealer may voluntarily avail the benefits of this scheme, and if he is eligible in terms of this circular and if he complies with the conditions laid down in this circular, then the refunds in his case will be granted as provided herein. This Trade Circular applies to any refund claims in respect of periods starting on or after 1st April, 2005 .
B) APPLICABILITY OF THIS CIRCULAR:
The guidelines issued under this Trade Circular are applicable to all cases wherein the applications for refund in form 501 have been filed and no audit proceedings has been initiated and the cases where in applications will be received after the date of this circular till further instructions. The cases covered in para "D" of this Trade Circular are however not eligible for the grant of refund under this circular.
C) CONDIITIONS FOR GRANT OF REFUND UNDER VOLUNTARY REFUND SCHEME:
The cases in which refund is due as per provisions of the Maharashtra Value Added Tax Act (MVAT Act) are only eligible for grant of refund under this circular.
All applications in Form-501 should be accompanied with purchase annexure in proper format.
The claimant dealer should submit the annexure of purchases in prescribed electronic format either on CD or pen drive along with application. (Annexure-A)
In cases wherein the applications in form 501 has been already filed, but purchase annexure in e- format was not submitted, the same should be submitted by the claimant dealer to the refund processing authority. (Annexure-A)
The claimant dealer should submit the list of CST declarations received and not received along with the form 501 in the enclosed proforma. (Annexure – C and D)
If so required by the refund processing authority, the certified copy of the return in which net refund has been claimed and the copies of returns from which refund has been carried forward should be submitted by the claimant dealer. This is subject to the instructions issued in Trade Circular 5T of 2008 dated 28/02/2008 .
The dealer should certify that no sales tax dues are outstanding against him & also that he has not carried forward the said refund in any other subsequent return/s or has not adjusted it against any of his liability or against previous returns. (Annexure-B)
The dealer should give an undertaking for taking part in this voluntary refund scheme. (Annexure-B)
All the above mentioned certifications should be done by duly authorized person of the firm and should carry the stamp of the firm & name of the authorized person.
D) CASES NOT ELIGIABLE FOR VOLUNTARY REFUND SCHEME :
The cases wherein the returns are not correct, complete and self consistent.
The cases wherein abrupt rise in refund claim is noticed as compared to the immediately preceding year. ( e. i. rise in refund claim more than 25% of the previous year)
The PSI dealer holding the entitlement certificate for part of an industrial undertaking through investment in an expansion unit.
The cases wherein substantial reduction in refund claim after comprehensive audit has been noticed for the immediate preceding financial year. ( 5% of the refund claim or Rs. 25000/- which ever is higher)
The cases which are selected for the post-audit refund by the processing officer with prior permission of the Joint Commissioner.
The first refund claim of the newly registered dealers and the last refund claim in case of the dealers wherein the registration certificate has been cancelled.
The dealers trading in the commodities namely iron and steel, dyes and chemicals and edible oils.
E) GRANT OF REFUND:
The refund by the procedure given in this circular will be granted only to those dealers, who agree to take part in the voluntary refund scheme as per annexure-B.
The input tax credit for the purpose of this circular will be allowed to the extent of suppliers whose return filling is confirmed.
The claimant dealer, may if he so desires, voluntarily submit the proof of return filing of the suppliers, if the same is not available with the department. The refund granting officer may accept the copies of the chalans and upon verification may allow the input tax credit in respect to chalans produced.
The differential tax liability under the Central Sales Tax Act in respect of missing declarations will be adjusted against the refund claim.
The refund will be issued after reducing the refund claim to the extent of non confirmation of the filing of returns of the supplier and differential liability due to missing declarations under CST Act.
The details of reduction of the refund will be supplied to the dealer along with R. S. O., so that the dealer can apply for refund after correction of the defects. (Annexure -E)
Once the refund is granted either after reduction or in full, the refund application will be treated as finalized and closed.
If confirmation of return filing in respect of any of the supplier and or any of the declarations under CST Act is subsequently received, in respect of which the refund was reduced, the dealer can again apply in form 501 for pending refund of that period along with the proof of return filed by supplier and / or the declaration under CST Act. However, this claim of refund shall be made only after six months from the date of making earlier application and only one application shall be made in respect of the balance claim.
Needless to state that the alternative of the optional bank guarantee is also available as per procedure laid down in the Trade Circular 56 T of 2007.
F) COMPREHENSIVE BUSINESS AUDIT:
Comprehensive business audit will be undertaken in selective cases in which refund under this circular has already been granted.
Comprehensive business audit will also be undertaken in all the cases mentioned in para "D" and in those cases where the dealer does not opt for Voluntary refund scheme. The refund in these cases will be granted only after Business Audit.
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.
Sd/-
(SANJAY BHATIA)
Commissioner of Sales Tax,
Maharashtra State, Mumbai.
( P. N. Patil )
Addl. Commissioner of Sales Tax,
VAT – I, Maharashtra State ,
Mumbai.
"ANNEXURE – A"
(To be submitted by the dealer along with form 501)
Officer Desk ID
Name of Claimant dealer
Sr. No.
Tax Invoice No.
Date of Invoice yyyy-mm-dd
Name of the supplier
Tin No.
Net Amount
Tax
Total Invoice Amount.
Monday, October 20, 2008
Thursday, October 9, 2008
Penalty u/s 271(1) (c)
C.I.T. Vs. Cafco Syndicate Shipping Co. 07/23/2007
[2007] 294 ITR 134 (Mad)
Case Fact: Whether, Penalty under section 271(1)(c) is permissible on the basis of addition of income by disallowing expenses?
Decision: Held by the Hon`ble Court that, the books of accounts revealed that the expenses were incurred by the assessee but not able to produce the proper vouchers for the expenses incurred and this is not amount to concealment of income. Therefore Penalty under section 271(1)(c) is not permissible on the basis of addition of income by disallowing expenses.
[2007] 294 ITR 134 (Mad)
Case Fact: Whether, Penalty under section 271(1)(c) is permissible on the basis of addition of income by disallowing expenses?
Decision: Held by the Hon`ble Court that, the books of accounts revealed that the expenses were incurred by the assessee but not able to produce the proper vouchers for the expenses incurred and this is not amount to concealment of income. Therefore Penalty under section 271(1)(c) is not permissible on the basis of addition of income by disallowing expenses.
Grievances to be registered online
NEW DELHI: Tax payers will now be able to lodge their grievances with the taxman at the click of a mouse, with the launch of an online complaint redressal mechanism on the lines of the existing e-filing facility of tax returns.
The facility will soon be available on the official Web site of the Income- Tax (IT) Department, with the completion of the trial run of this maiden initiative in the next few months.
"The department will now start to register the grievances of the taxpayer on the official portal also, similar to the online filing of tax returns facility," said a senior IT official involved in developing the new process.
The trial run of this facility named 'Sevottam' is already being experimented on a pilot-basis in Mumbai and Udaipur, the official said. While registering online complaints, the tax payer will also receive an acknowledgment number, which would have a fi xed time limit that will ensure that it is redressed within a stipulated duration.
The online facility aims to create a hassle-free facility for tax payers across the country, the official added. -
The facility will soon be available on the official Web site of the Income- Tax (IT) Department, with the completion of the trial run of this maiden initiative in the next few months.
"The department will now start to register the grievances of the taxpayer on the official portal also, similar to the online filing of tax returns facility," said a senior IT official involved in developing the new process.
The trial run of this facility named 'Sevottam' is already being experimented on a pilot-basis in Mumbai and Udaipur, the official said. While registering online complaints, the tax payer will also receive an acknowledgment number, which would have a fi xed time limit that will ensure that it is redressed within a stipulated duration.
The online facility aims to create a hassle-free facility for tax payers across the country, the official added. -
VAT Trade Cir - 34T of 2008 - Verification of Profession Tax Paid
829, 8th Flr.,
Vikrikar Bhavan,
Mazgaon, Mumbai- 400 010
TRADE CIRCULAR
To,
No. VAT/Addl CST/VAT ADM 3Mumbai Dt.04.10.2008
(Trade Cir. No: 34 T of 2008)
Sub:- Verification of Profession Tax Paid.
Gentlemen/Sir/Madam,
The sales Tax department has recently been re-organised to facilitate the administration of various Taxes.
The profession Tax payable under the Profession Tax Act is also administered by the Sales Tax Department.
In pursuance of re-organisation, various officials from the Business Audit, Large Tax Payer Units & Refund Audit branch are visiting the places of the business of dealers, for conducting the Business Audits. Hence forth these officers, at the time of visit, shall also verify the up to date payment of profession tax, the correctness of Profession tax paid etc. If required, the officer may ask for copies of Profession Tax Returns/ Challan etc. for checking. The Trade at large is requested to take note and furnish all the relevant information to the visiting officer of the Business Audit / Refund Audit/ LTU branch officer. The Auditing officer shall forward the Audit finding to the JC (PT). The officers in the Profession Tax Branch, if required to do so, shall pass an assessment order. This circular is administrative in nature and can not be made use of for legal interpretation of provisions of laws. If any member of trade has any doubt, he may refer the matter to this office for further clarification. You are requested to bring to the notice the contents of this circular to the members of your association.
Yours faithfully, (Sanjay Bhatia)Commissioner of sales Tax,Maharashtra State, Mumbai.
No. VAT/Addl CST/VAT ADM 3/
Mumbai Dt.04.10.2008
Trade Cir. No:34 T of 2008)
(Vivek L. Bhimanwar)
Dy. Commr. Of Sales Tax
(S.O.)Maharashtra State, Mumbai.
Vikrikar Bhavan,
Mazgaon, Mumbai- 400 010
TRADE CIRCULAR
To,
No. VAT/Addl CST/VAT ADM 3Mumbai Dt.04.10.2008
(Trade Cir. No: 34 T of 2008)
Sub:- Verification of Profession Tax Paid.
Gentlemen/Sir/Madam,
The sales Tax department has recently been re-organised to facilitate the administration of various Taxes.
The profession Tax payable under the Profession Tax Act is also administered by the Sales Tax Department.
In pursuance of re-organisation, various officials from the Business Audit, Large Tax Payer Units & Refund Audit branch are visiting the places of the business of dealers, for conducting the Business Audits. Hence forth these officers, at the time of visit, shall also verify the up to date payment of profession tax, the correctness of Profession tax paid etc. If required, the officer may ask for copies of Profession Tax Returns/ Challan etc. for checking. The Trade at large is requested to take note and furnish all the relevant information to the visiting officer of the Business Audit / Refund Audit/ LTU branch officer. The Auditing officer shall forward the Audit finding to the JC (PT). The officers in the Profession Tax Branch, if required to do so, shall pass an assessment order. This circular is administrative in nature and can not be made use of for legal interpretation of provisions of laws. If any member of trade has any doubt, he may refer the matter to this office for further clarification. You are requested to bring to the notice the contents of this circular to the members of your association.
Yours faithfully, (Sanjay Bhatia)Commissioner of sales Tax,Maharashtra State, Mumbai.
No. VAT/Addl CST/VAT ADM 3/
Mumbai Dt.04.10.2008
Trade Cir. No:34 T of 2008)
(Vivek L. Bhimanwar)
Dy. Commr. Of Sales Tax
(S.O.)Maharashtra State, Mumbai.
Circular No 8 TDS on salary 2008-09
CBDT has issued Circular No. 8 on Tax Deduction at Source. A clarification on taxability of arrears of salary received/receivable on account of 6th Pay Commission recommendation is also placed at Page-39 of the Circular.
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