E-filing of Returns, Registration and Declaration forms …jbnagarca.org/.../E-Filing-under-MVAT-and-Profession-Tax-23rd-June... · VAT is a multi stage tax levied on the Value Added

E-filing of Returns, Registration and Declaration forms under MVAT Act & Profession Tax

Presented by

CA Somit Goyal

On Saturday 23rd June, 2012

For

Seminar on E-Filing Under Various Laws

Jointly with WIRC.

1CA Somit Goyal

E Filing under MVAT LawsE Filing under MVAT Laws

◦ E Registration

◦ E Enrolment

◦ E Payment

◦ E Return

◦ E MVAT Audit Report in Form 704

◦ E Annexures

◦ E CST Declaration Forms

◦ E Refund Application

2CA Somit Goyal

E Annexures E Annexures � What are E Annexures? And why E Annexures?

◦ VAT is a multi stage tax levied on the Value Added.

◦ Grant of set off is a must.

◦ Dealer liable to VAT Audit: Submits details of customer-wise sales and customer-wise purchases.

◦ Dealers not liable to VAT Audit: No such provision for submission of customer-wise sales and customer-wise purchases.

◦ Difficulty to cross check the set off claim in respect of dealerclaiming refunds.

3CA Somit Goyal

E Annexures (Contd..)E Annexures (Contd..)

� Applicable from Last Return for the FY 2011-12 except:

◦ Retailers covered u/s. 42(1)

◦ Baker, Restaurant, Second hand motor dealer u/s. 42(2)

◦ Builders & Developers u/s. 42(3A)

� E Annexures need to be uploaded first thereafter last return is to be uploaded.

� The due date for uploading E Annexures for the FY 2011-12 is 30th June 2012.

� Last Return will contain details of the concerned period only. However E Annexure will contain details for the entire Financial Year.

4CA Somit Goyal


� Whether E Return can be Revised ?

5

Particulars W.e.f 01st May 2011

Period of Filing of Revise Return on his own

No. of times a dealer can

revise return on his own

One 10 months from the end of

the year


revise return as a result of

Audit u/s. 61

One Before the expiry of 30 days

from the due date of Audit


revise return as a result of

audit or any proceeding by

department

One Within 30 days from the

date of service

CA Somit Goyal

E Annexures (Contd..) E Annexures (Contd..)

� Whether E Annexures can be Revised?

◦ No, Letter to JC Return Branch indicating mistake and physical copy of corrected form.

� E Annexures include:

◦ Annexure J Section1

◦ Annexure J Section 2

◦ Annexure C

◦ Annexure D

◦ Annexure G

◦ Annexure H

◦ Annexure I

6CA Somit Goyal


7CA Somit Goyal


8CA Somit Goyal

E Annexures (Contd..)E Annexures (Contd..)� Issues (Annexure J Sec 1)

◦ Whether Bill wise Sales details need to be entered or Customer wise?

◦ Whether Inter State Sales needs to be entered?

◦ Whether Tax Free Sales needs to be entered?

◦ Whether Labour charges sales need to be entered in case the bills are raised to a:� TIN holder

� Non TIN holder

◦ Whether Gross Sales details or Net sales details (i.e., after Goods Returns needs to be provided?

9CA Somit Goyal


� Issues (Annexure J Sec 1)

◦ What is Net Taxable Amount? [Eg PSI Unit ]

◦ In case Sales are made to a customers who is not having a TIN, where should the sales details pertaining to such customer be reflected?

◦ In case a Sales made to a customer who is not having a Valid TIN, where should the sales details pertaining to such customerbe reflected?

◦ In case a dealer has not bothered to collected TIN of customers, and proceeds to enter the data as sales to non Tin holders. Whether the said action is proper?

10CA Somit Goyal


� Issues (Annexure J Sec 1)

◦ In case sales bill is issued of an amount inclusive of vat, whether that amount can be bifurcated into Net Amount and VAT Amount and reflected?

◦ Is it better to verify the TIN of the Customer on the website before uploading the data?

◦ Whether details of Sale of Fixed Assets / Misc Sales also need to be entered?

◦ Is it necessary to take due care and reconcile the accounts withthe books before uploading the data?

11CA Somit Goyal


12CA Somit Goyal


13CA Somit Goyal


� Issues (Annexure C)

◦ Whether details of MVAT TDS Certificate received needs to be entered Bill wise or Certificate wise?

◦ Whether it is possible that Employer who has deducted your MVAT TDS wont be having TIN? If yes what to enter in column of MVAT TIN of Employer?

◦ Ensure that total MVAT TDS claimed is in agreement with what is claimed in the returns filed for the entire FY.

◦ Ensure that the Sales corresponding to the MVAT TDS Certificate claimed is offered to Sales Tax.

14CA Somit Goyal


15CA Somit Goyal


� Issues (Annexure D)

◦ Whether details of MVAT TDS Certificate issued needs to be entered Bill wise or Certificate wise?

◦ Ensure that cases where MVAT TIN of the dealer is mentioned / not mentioned is in agreement with the rate at which MVAT TDS is deducted?

◦ Whether it is necessary to report cases where MVAT TDS is liable for Deduction and not deducted?

◦ Whether it is necessary to report cases where MVAT TDS deducted and paid is less than what is required?

16CA Somit Goyal


17CA Somit Goyal

E Annexures (Contd..)E Annexures (Contd..)� Issues (Annexure G)

◦ Whether details needs to be entered Bill wise or Declaration wise?

◦ Whether Bill amount needs to be entered gross or net of Returns?

◦ Ensure that Reconciliation statement is prepared reconciling thetotal sales against declaration form and cases where declarationforms is received and declaration forms not received.

◦ Ensure CST TIN is mentioned against CST Declaration forms received and MVAT TIN is mentioned against Local Declaration Forms received.

◦ Kindly ensure that Issuing State is select from the drop down option.

18CA Somit Goyal


19CA Somit Goyal


20CA Somit Goyal

E Annexures (Contd..)E Annexures (Contd..)� Issues (Annexure H and I)

◦ Whether details needs to be entered Bill wise or Declaration wise?

◦ Whether Bill amount needs to be entered gross or net of Returns?

◦ Ensure CST TIN is mentioned against CST Declaration forms received and MVAT TIN is mentioned against Local Declaration Forms received.

◦ How Sales in Transit transactions need to be reported?

◦ Website to check CST TIN:� http://www.tinxsys.com/TinxsysInternetWeb/index.jsp

� http://www.knowyourtin.com/

21CA Somit Goyal

E Filing of Return (Contd..)E Filing of Return (Contd..)

� Due Date for E filing of Return:

◦ If periodicity is Monthly or Quarterly:

� Taxes paid in time i.e., within 21 days from the end of the period:

� No – within 21 days from the end of the period.

� Yes – extension of 10 days from the due date of payment.

◦ If periodicity is Half yearly:

� Taxes paid in time i.e., within 30 days from the end of the period:

� No – within 30 days from the end of the period.

� Yes – extension of 10 days from the due date of payment.

22CA Somit Goyal

E Filing of Return (Contd..)E Filing of Return (Contd..)

�Steps in e filing of Return / Annexure:◦ Latest Form to be used

◦ Download – Forms – Electronic Forms

◦ Forms need to be filed up offline

◦ Offline Validation utility is available

◦ If there are error, correct the same

◦ On successful validation –Rem.txt file is generated

◦ Login to the website

◦ E Returns – Choose the file – click Validate & Upload

◦ Acknowledgment23CA Somit Goyal

E Registration under MVAT and CST E Registration under MVAT and CST

ActAct

24

oo Dealer needs to log on to webDealer needs to log on to web--site site

www.mahavat.gov.inwww.mahavat.gov.in

oo Click on eClick on e--registration in eregistration in e--services column on home services column on home

pagepage.CA Somit Goyal

E Registration under MVAT E Registration under MVAT

and CST Act (Contd..)and CST Act (Contd..)� Mozilla Firefox

� PAN, location, name of business, name of applicant, status of applicant and Act.

� Click Next

� Request Id generated

� Fill up the E MVAT and E CST Registration Form.

� Uploaded the same after verification

� Acknowledgment generated

� Print MVAT and CST e-registration form

� Submission of Document and TIN Allotment

25CA Somit Goyal


and CST Act (Contd..)and CST Act (Contd..)� Issues:

◦ Don’t use higher versions of Mozilla Fire fox (Commodity Addition and Additional Place of Business issue)

◦ Re print option not of e CST Form

◦ Error in making application?

◦ List of Commodities that can be purchased against C Form?

◦ Whether Registration can be obtained on the basis of Savings Account?

26CA Somit Goyal



◦ Vicious Circle of opening a current account and obtaining VAT TIN?

◦ No Composition option for Builder / Developers in e Form 101.

◦ What will be the date of effect of TIN Certificate?

◦ What if introductory is a Hawala Dealer or a dealer whose TIN is cancelled?

◦ In case of Turnover based registration what if purchase is from Hawala Dealer or a dealer whose TIN is cancelled?

27CA Somit Goyal



◦ Voluntary Registration – Bank statement to be verified.

◦ New Internal Circular for Pre visit.

28CA Somit Goyal

E Declarations E Declarations

� Steps in e filing of Application for Declaration Form:◦ Latest Form to be used



◦ Details asked for in the Form:

� Form Type

� Name of the form Accepting Dealer

� CST RC / CST TIN of the form Accepting Dealer

� Period of Transaction:

� From

� To

� Total Number of Transactions

� Total Value of Transactions including Tax

� Description of Major Goods

� Email Id (Not Mandatory)

� Mobile (Not Mandatory)29CA Somit Goyal

E Declarations (Contd..)E Declarations (Contd..)

◦ Issues:

� What if amount as per Return filed is less than the amount for which application is made?

� Practical difficulty in case where figures as per returns is less and return cannot be revised until completion of Audit.

� File processed in Excel 2007 cannot be uploaded.

� Goods for which application is made needs to be specified in the CST TIN Certificate.

� Practical difficulty if periodicity of Returns is Half yearly asapplication cannot be made after completion of quarter.

30CA Somit Goyal

E Declarations (Contd..)E Declarations (Contd..)◦ Issues:

� Whether better to file separate application for separate period?

� Whether any way out if declaration forms are required urgently?

� Whether Declaration form application can be made more than once for a single period?

� Whether Declaration forms application can be cancelled?

� Whether Declaration form application can be cancelled after the declaration forms are received?

� What will be consequences if a single TIN mentioned in the application is cancelled or invalid?

� Corrections in Declaration Form?31CA Somit Goyal

E Declarations (Contd..)E Declarations (Contd..)





◦ E CST Declarations – Choose the file – click Validate & Upload

◦ Acknowledgment

32CA Somit Goyal

E Filing under Profession E Filing under Profession

Tax LawsTax Laws

◦ E Registration

◦ E Enrolment

◦ E Payment

◦ E Returns

33CA Somit Goyal

Periodicity for filing Return under Periodicity for filing Return under

Profession Tax LawsProfession Tax Laws

34

Periodicity for filing

of Returns

New Provisions (wef 01st April 2011)

Old Provisions (upto 31st March, 2011)

Monthly If tax liability during the previous year or part there of is Rs. 50000/- or More

If tax liability during the previous year or part there of is Rs. 20000/-or More

Quarterly No provision for Quarterly return. There is provision for only monthly and yearly returns.

If tax liability during the previous year or part there of is Rs. 5000/-or More but less than Rs. 20000/-

Annual If tax liability during the previous year or a part there of is Less than Rs. 50000/-

If tax liability during the previous year or a part there of is Less than Rs. 5000/-

CA Somit Goyal

Summary of Provisions of Profession Summary of Provisions of Profession

Tax wrt ReturnsTax wrt Returns

35

Periodicity Salary details to

be provided in

the return for

the month of

Due Date for payment of Tax in MTR-6

Due Date for uploading of Return in Form III-B

April, 2011 March, 2011 30th April, 2011 10th May, 2011

March, 2012 February, 2012 31st March, 2012 10th April, 2012

April to March, 2012

March, 2011 to February, 2012

31st March, 2012 10th April, 2012

Wef 01st August 2011 all the employers registered under the

Profession Tax Act are required to file their return electronically.

CA Somit Goyal

E Returns under Profession Tax LawsE Returns under Profession Tax Laws

36CA Somit Goyal

E Returns under Profession Tax Laws E Returns under Profession Tax Laws

(Contd..)(Contd..)

37CA Somit Goyal

E Registration under Profession Tax E Registration under Profession Tax

Laws (Circular 5T of 2012)Laws (Circular 5T of 2012)

38

� Earlier Provisions:

◦ Application for Registration was being made manually to the Registration Authority

� Wef 01st April 2012:

◦ Application for Registration (PTRC) and Enrolment (PTEC) under the Profession Tax Act should be electronically uploaded in Form I and Form II respectively.

� www.mahavat.gov.in

� Remaining Process for Registration remains the same (document verification etc.)

CA Somit Goyal

E Registration under Profession Tax E Registration under Profession Tax

Laws (Contd..)Laws (Contd..)

39

� Issues:

� The Dealer having old PTRC No and who are not allotted New PTRC No has to apply for New No. starting with 27 digit and ending with suffix “P”.

� The process to convert from old no to new no is same as applying for new PTRC No

� For uploading PTRC return the 11 digits PTRC No. should be same as VAT and CST TIN No for the main POB, However for other branches PTRC No will be different.

CA Somit Goyal

E Enrolment under Profession Tax E Enrolment under Profession Tax

Laws (Circular 5T of 2012)Laws (Circular 5T of 2012)

40

� One Time Activity

� Employers holding PTRCs can enroll for e services:

◦ Separate window for Employers holding VAT / CST TIN

◦ Separate window for Employers not holding VAT / CST TIN

� PT EC holders cannot enroll for the e services

� Acknowledgment is generated once the dealer is enrolled.

� Duly signed and stamped copy of Acknowledgment needs to be submitted with the Department.

CA Somit Goyal

E Payment under Profession Tax LawsE Payment under Profession Tax Laws

41

� Optional for all PTRC holders as well as PTEC holders to make e payment

� Prerequisites for e payment:

◦ PTRC Holders : E Enrolment

◦ PTEC Holders : No Requirement

CA Somit Goyal

E Enrolment (MVAT Laws)E Enrolment (MVAT Laws)� The enrolment for e-services is one time activity.

� It is mandatory to get enrolled for enjoying other e services like:

◦ E Return

◦ E Declaration

◦ E Form 704 etc

� Login ID (TIN 11 Digit No without suffix) and Password (dealers option)

� Acknowledgment is generated once the dealer is enrolled.

� Duly signed and stamped copy of Acknowledgment needs to be submitted with the Department.

42CA Somit Goyal

E Payment of Taxes E Payment of Taxes

(MVAT Laws)(MVAT Laws)� MTR 6 Challan

� E Payment is mandatory to all Dealers in a gradual manner:◦ Monthly

◦ Quarterly

◦ Half Yearly

� Due date for payment of taxes, if periodicity for filing of Sales Tax Returns is:◦ Monthly / Quarterly:

� Within 21 days from the end of the period

◦ Half yearly:

� Within 30 days from the end of the period

43CA Somit Goyal

E Payment of Taxes (MVAT E Payment of Taxes (MVAT

Laws) (Contd..)Laws) (Contd..)� Relief to Half yearly dealers (SBI Letter No. GBD/SCC/974)

� Extract of the said letter:

◦ Collect MVAT & CST from six monthly dealers

� Cash or

� Transfer

◦ Make Remittance to Government

◦ Facility for all Six Monthly dealers irrespective of whether they maintain an account with SBI or not.

44CA Somit Goyal

Periodicity for filing of Return (as well as Payment) Periodicity for filing of Return (as well as Payment)

(Circular 26T of 2009, 34T of 2009 and 19T of (Circular 26T of 2009, 34T of 2009 and 19T of

2010) MVAT Laws2010) MVAT Laws

� Based on Tax Liability or Refund Entitlement for the previous year

� Previous year for Monthly filer means March to Feb and not April to March.

� Department had further clarified in its circular that in case any return is not filed, tax liability or refund entitlement is worked out applying the average to the default period return.

� As per Department for ease and convenience of the dealer, the periodicity is generated through the automated system and displayed on the website.

� As per Circular 19T of 2010 if a dealer is aggrieved by the periodicity determined and published on the website, he may contact Jt Comm of Sales Tax (Returns). 45CA Somit Goyal

Periodicity for filing of Return (as well as Periodicity for filing of Return (as well as

Payment) (MVAT Laws) (Contd..)Payment) (MVAT Laws) (Contd..)

� Vide Notification No. VAT. 1511/CR-84/Taxation-1, dt. 13/09/2011 Rule 17(4)(e) was added, which mentions:

◦ Commissioner may determine the periodicity of filing returns for every year.

◦ the periodicity so determined shall be final and be displayed on the website of the Sales Tax Department.

� Dealers Service --- Know your TIN

46CA Somit Goyal

E MVAT Audit Report in Form 704E MVAT Audit Report in Form 704

� MVAT Audit Report contains the following:◦ Part I – Audit Report & Certification

◦ Part II - General Information about the Dealers Business Activities.

◦ Schedule I/II/III/IV/V - Schedule corresponding to MVAT Returns filed in Form 231/232/233/234/235 for the period.

◦ Schedule VI - Schedule corresponding to CST Returns filed in Form III (E) CST for the period.

◦ Annexure A - Details of the Amount Paid along with returns and or Challan corresponding to Schedule I/II/III/IV/V under MVAT Act, 2002.

◦ Annexure B - Details of the Amount Paid along with returns and or Challan corresponding to Schedule VI for CST Act, 1956.

47CA Somit Goyal

E MVAT Audit Report in Form 704 E MVAT Audit Report in Form 704

(Contd..)(Contd..)

◦ Annexure C - Details of Tax Deducted at Source (TDS) certificates received

◦ Annexure D - Details of Tax Deducted at Source (TDS) certificates issued

◦ Annexure E - Computation of Set-Off Claim On the Basis of Tax paid Purchases Effected from Registered Dealers.

◦ Annexure F - Financial Ratios for the year under audit and other information.

◦ Annexure G - Details of Declarations or certificate received

◦ Annexure H – Details of Declarations or Certificates (in local Form-H) not received

◦ Annexure I - Declarations or Certificates not received under Central Sales Tax Act, 1956. (Other than Local Form-H)

48CA Somit Goyal


(Contd..)(Contd..)◦ Annexure J Sec 1 - List of Customer Wise Sales on which

VAT is charged separately.

◦ Annexure J Sec 2 - List of Supplier Wise Purchases on which VAT is charged separately.

◦ Annexure J Sec 3 – Customer Wise Debit Note or Credit Note.

◦ Annexure J Sec 4 – Supplier Wise Debit Note or Credit Note.

◦ Annexure J Sec 5 – Customer Wise Transactions of Direct Export and Highseas Sales under CST Act, 1956.

◦ Annexure J Sec 6 - Supplier Wise Transactions under CST Act, 1956.

◦ Annexure K - Determination of Gross turnover of Sales & Purchase alongwith reconciliation with Profit & Loss Account , Trial Balance/ Sales and Purchase register.

49CA Somit Goyal


(Contd..)(Contd..)

� Steps in e-filing of MVAT Audit Report:

� Latest Form to be used

� Download – Forms – Electronic Forms

� Forms need to be filed up offline

� Offline Validation utility is available

� If there are error, correct the same

� On successful validation –Rem.txt file is generated

� Login to the website

� E Audit Form – Choose the file – click Validate & Upload

� Acknowledgment

50CA Somit Goyal


(Contd..)(Contd..)

� Manual filing after e filing of MVAT Audit Report:

◦ Acknowledgment

◦ Letter of Submission

◦ Part I

� Digital Signature

51CA Somit Goyal

E RefundE Refund

� Steps in e filing of MVAT Refund Application:

◦ Latest Form to be used







◦ E Refund Applications – Choose the file – click Validate & Upload

◦ Acknowledgment

52CA Somit Goyal

“Manual Filing Bring Tears

& E Filing Bring Cheers”

Thank You

☺53CA Somit Goyal

Documents

E-filing of Returns, Registration and Declaration forms …jbnagarca.org/.../E-Filing-under-MVAT-and-Profession-Tax-23rd-June... · VAT is a multi stage tax levied on the Value Added