CA Rajesh Saluja Lunawat & Co.
DVAT LATEST AMENDMENTS
SNSC 13/06/2014
CA Rajesh Saluja Lunawat & Co.
Latest Circulars
• Circular Dt. 02/06/2014 – Summer break from
02/06/2014 to 30/06/2014.
• During this period the AOs will not pass any Ex-parte
orders for non-appearance of Counsels.
• If a counsel upon an earlier fixation of case decides to
attend, he may do so.
• This exemption will not apply to:
•Remand Assessment cases
•Registration cases
•Any other case which is getting time barred
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CA Rajesh Saluja Lunawat & Co.
Latest Circulars
• No.F(420)/VAT/Policy/2011/PF/02-08 Dt.
15/04/2014
• Although Notification No.F.3(27)Fin.(Rev-I)2013-
14/DSVI/292 was applicable w.e.f 05/03/2014, but
department allowed the return of 4th Qtr. To be filed in
old format.
• For Quarter ending June’14, new Format of Form I, is
available, wherein you are not required to file R10 and
R11 details.
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CA Rajesh Saluja Lunawat & Co.
Latest Circulars
• Now Reconciliation return in Form 9 is to be filed online,
within six months from the end of a Financial Year.
• A dealer can also file return for one or more quarters
during the financial year, subject to the limit mentioned
above
• This return can be revised before the end of the financial
year next to which it relates.
• Commissioner has the power to further extend the
revision period by 3 months.
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CA Rajesh Saluja Lunawat & Co.
Interesting Case Law
• M/s KONE Elevators India Pvt. Ltd. Vs. State of
Tamil Nadu
SC explains distinction between “Contract for sale
of goods” and “Works contract”
• Issue:
Whether supply, erection, installation and
commissioning of lift at customer’s premises
constitute “Contract for sale of goods” or “Works
contract”?
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CA Rajesh Saluja Lunawat & Co.
Interesting Case Law
• Hon’ble Sales Tax Appellate Tribunal, Andhra
Pradesh opined that the nature of work is a
“Works contract”, for the erection and
commissioning of lift cannot be treated as “Sale”
• On a revision being filed, the Hon’ble High
Court of Andhra Pradesh (“the Hon’ble HC”)
affirmed the view of the Tribunal
• the State of Andhra Pradesh filed a SLP with
Hon’ble Supreme Court of India 1-5
CA Rajesh Saluja Lunawat & Co.
Interesting Case Law
• By judgment dated February 17, 2005 in State of
A.P. Vs. Kone Elevators (India) Ltd. [(2005) 3
SCC 389 = 2005-TIOL-30-SC-CT-LB], the view
of the High Court was overruled.
• The three Judge Bench of the Hon’ble Supreme
Court applied the “Dominant nature test”
• Being aggrieved by the aforesaid order of
Hon’ble Supreme Court, the Petitioner preferred
a petition before the Hon’ble Supreme Court of
India under Article 32 of the Constitution. 1-6
CA Rajesh Saluja Lunawat & Co.
Interesting Case Law
It is held by the five Judge Constitution Bench of the
Hon’ble Supreme Court of India that four concepts have
emerged from various SC judgments, which are:
1. The Works contract is an indivisible contract but, by legal
fiction, is divided into two parts, one for sale of goods,
and the other for supply of labour and services;
2. The concept of “Dominant nature test” or for that matter,
the “Degree of intention test” or “Overwhelming
component test” for treating a contract as a Works
contract is not applicable
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CA Rajesh Saluja Lunawat & Co.
Interesting Case Law
3. The term “Works contract” as used in Clause (29A) of
Article 366 of the Constitution takes in its sweep all genre
of Works contract and is not to be narrowly construed to
cover one species of contract to provide for labour and
service alone; and
4. Once the characteristics of Works contract are met with
in a contract entered into between the parties, any
additional obligation incorporated in the contract would
not change the nature of the contract.
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CA Rajesh Saluja Lunawat & Co. 1-9
Form T-2 ?
• A consignment agent is receiving goods from another
state and selling them in Delhi. He only receives
commission on these sales. Is he liable to file Form T-2 ?
• An Exporter based in Delhi, purchased goods from
Mumbai against ‘H’ Forms and without bringing it to
Delhi it is transferred to Mumbai port. Is he required to
file Form T-2 ?
• A dealer purchased goods from Kerela against ‘C’ form
and on the way more than one vehicle is used to bring
the goods to Delhi. Which Truck no. would you fill in T-
2 ?
CA Rajesh Saluja Lunawat & Co. 1-10
Form T-2 ?
• A registered dealer has sent goods to other state for Job
work and he is receiving back the goods. Is he liable to
file Form T-2 ?
• A registered dealer is receiving back goods in the form of
Sales Return. Is he required to file Form T-2 ?
• A registered dealer making E-I and E-II Sales. Is he
required to file Form T-2 ?
• A dealer has sent details through SMS which
subsequently change while the goods were being
dispatched. What should the Delhi dealer do?
• A user imports goods from outside Delhi for personal
use. Is he required to file Form T-2 ?
CA Rajesh Saluja Lunawat & Co. 1-11
Form T-2 ?
• An unregistered dealer who wants to make first inter-
state purchase. Is he required to file Form T-2?
CA Rajesh Saluja Lunawat & Co. 1-12
CA Rajesh Saluja Lunawat & Co.
CA Rajesh Saluja Lunawat & Co.
Banquet Halls
•What are the conditions when return (BE-
2) need to be filed
(i) a programme/ function to be organised in a banquet hall,
Farm house, Marriage/Party hall, Hotel, Open ground
etc.; and
(ii) food and/or liquor items are to be supplied/ provided;
and
(iii) cost of booking exceeds rupees one lakh per function
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CA Rajesh Saluja Lunawat & Co.
Banquet Halls
•When return to be filed and for which
period
• Return to be filed 3 days before the fortnight.
For example return for the period 01.02.2014 to
15.02.2014 to be filed till 28.01.2014 and for the period
16.02.2014 to 28.02.2014 be filed till 12.02.2014.
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CA Rajesh Saluja Lunawat & Co.
Provisions under DVAT regarding Food &
Beverages served in restaurant, banquet etc
• As per Rule 4A of DVAT Rules in case of "residential
hotels charging a composite sum for lodging and boarding
with breakfast/lunch/dinner" if the dealer do not have
sufficient documentary evidence to prove component of
taxable turnover of sales in composite sum then taxable
turnover will as follows:
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CA Rajesh Saluja Lunawat & Co.
Provisions under DVAT regarding Food &
Beverages served in restaurant, banquet etc
• a) Where the composite charges include the 5% of composite charges
charges for breakfast.
• (b) Where the composite charges include the 10% of composite charges
charges for lunch.
• (c) Where the composite charges include the 15% of composite charges
charges for dinner
• (d) Where the composite charges include the 15% of composite charges
charges for breakfast and lunch
• (e) Where the composite charges include the 20% of composite charges
charges for breakfast and dinner
• (f) Where the composite charges include the 25% of composite charges
charges for lunch and dinner
• (g) Where the composite charges include the 30% of composite charges
charges for breakfast, lunch and dinner
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CA Rajesh Saluja Lunawat & Co. 1-17
Goods sent on Job work
Do you need a form for sending/receiving goods on job
work?
Case –I
Goods sent to Haryana for job work and the Haryana party does
some value addition in terms of materials. What forms should be
used for sending the goods to Haryana and thereafter receiving them
back?
Case –II
Goods sent to Haryana for job work and the Haryana party only
does some value addition in terms of labour. What forms should be
used for sending the goods to Haryana and thereafter receiving them
back?
CA Rajesh Saluja Lunawat & Co.
Challenges of Online Filing
• Online Filing has been made mandatory for the
following:
1. Surrender of RC - Central Form 10 not available online
2. Filing of amendments – Central Form 11, not available
online
3. Registration Process
4. Form T-2
5. Form 9 - Central Form 9, not available online
6. Filing of objections (optional)
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CA Rajesh Saluja Lunawat & Co.
Downloading Forms
• Downloading Forms linked to pending tax
demands
• Demands on account of :
• Mismatch in claiming input credit
• Non-filing of central forms
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CA Rajesh Saluja Lunawat & Co.
Filing Objection U/s 74
• Objection can be made against:
• An assessment made under this Act
• Any other order or decision made under this Act
• Important Points:
• Before filing an objection, the amount of Tax,
interest or penalty assessed that is not in dispute
must be paid, otherwise the objection shall be
deemed to have not been filed
• Only one objection can be made against any
assessment, decision or order 1-20
CA Rajesh Saluja Lunawat & Co.
Filing Objection U/s 74
• Commissioner may direct the dealer to deposit a
part of the disputed demand – stay of demand.
• The objection shall be made within 2 months of the
date of service of the assessment of the assessment,
decision or order, as the case may be.
• The objection shall be made in DVAT 38 (New
Form)
• Condonation of delay can be made in DVAT 39
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CA Rajesh Saluja Lunawat & Co.
Filing Objection U/s 74
• Three Sets including:
•Photocopy of Forms
•Copy of Order against which objection is being made
•Payment proof of agreed tax
•POA (one)
•Grounds of Appeal
•Facts of case
•Covering letter
•Fees of Rs. 50/- court fees stamp
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CA Rajesh Saluja Lunawat & Co.
Challenging Issues
• Even if there is no mismatch showing in the dealer’s
login, still demands are being raised.
• Refunds are being cancelled suo-moto by VATO,
without giving opportunity of being heard.
• In some cases the refund cancellation orders are not
available with the department.
• In case of on-line registration process, a provisional
registration no. is generated, which is subject to VATI
visit and report, to be done within 15days of
application. Dependency on VATI and practically very
difficult to get this done in the given time. 1-23
CA Rajesh Saluja Lunawat & Co.
• Thank you!