Sales Tax Review

April 2008

TRADE CIRCULAR.

No.VAT-2008/E-Return  

Gentleman/Sir/Madam,

                        This  office  had  earlier  issued  a  Trade  circular  dated  12^th  September 2007 regarding  electronic  filing  of  returns.   In  that circular, it was stated that it is proposed  to  introduce  a  system  whereby  returns  can  be  filed electronically.  It was further stated that various alternatives regarding electronic filing of returns are under consideration and discussion and that the representatives of the trade and tax consultants are being consulted while finalizing the new procedure.  After such discussions, the rules and the provisions regarding filing of  electronic returns were finalized and necessary amendments to the rules  were carried out.

2. Provisions:

2.1   The   Government   by   Notification   No.  VAT/1507/CR-94/Taxation-1  dated 14^th March 2008   has   now carried  out  certain amendments to Rule 17 and Rule 18 of Maharashtra  Value  Added  Tax Rules,  2005  pertaining  to  filing  of  return.  The amendment to rule 17 provides for filing of electronic return (e return) by certain categories of dealers. It also provides that the registered dealer  so liable  to  file  return  electronically  should  first  make  the  payment of tax along with  interest,  if any,  in  chalan  210  in  the  Government  Treasury.  The amended  rule authorises the Commissioner of Sales  Tax  to notify the date for mandatory filing of e-return by certain categories of dealers. In  pursuance  of  this authorisation, the  Commissioner  of  Sales  Tax  had issued a notification dated 14^th March, 2008 and had made  registered dealers having tax liability in previous year equal to or above Rs. One crore to be liable to file electronic returns for periods  starting on or after 1^st February   2008   onwards.
 

2.2      Now it has been decided to extend the applicability of filing of e-returns even to  dealers having tax liability equal to or exceeding  Rs.10 lac for previous year.  Accordingly a notification dated 19^th April 2008 has already been issued by the Commissioner of Sales Tax. As a result the first Electronic Return for these dealers having tax liability equal or exceeding Rs.10 lac in previous year, shall be for the month of May 2008  due on 21^st June 2008.  For  the purposes of the notification, the expression ‘tax liability’ has the same meaning  as  assigned  to  it  in the Explanation-I to sub-rule (4) of the said Rule 17. The date has been notified nearly seven weeks in advance  to ensure that the dealers, consultants, practitioners and officials are trained and are well versed in the procedure of filing Electronic returns before the first return for the new category is due.

3. Procedure of filing of E-Returns through the web site:

3.1       The dealers liable to file electronic returns, shall have to file the return electronically in the respective form applicable to  them.  The templates of new return forms are provided on the website of  the Sales Tax Department www.mahavat.gov.in.  Every dealer to whom the above notification applies shall download the relevant template of the form and after  making  data  entry  in  the relevant field upload it using his digital signature.  The uploading shall be done on or  before  the  due  date prescribed for filing of the returns. The system shall generate an acknowledgement. The dealer should save such acknowledgement for his reference and should take two print outs of the acknowledgement. 

3.2       However, if the dealer does not have or has not used digital signature then he should submit a printed copy of the acknowledgement duly signed by an authorised person to their respective Returns Branch authority, within ten days from the day of uploading of the return.                               
3.3       To facilitate filing of e-return, a detailed instruction sheet explaining the procedure to file the e-return is placed on the website www.mahavat.gov.in. A presentation has also been uploaded on the website showing therein the various steps for filing electronic return. It is essential that the dealers as well as the consultants go through the instruction sheet and presentation thoroughly, and follow the steps / guidelines to successfully upload the electronic return. The Sales Tax department has already initiated steps to train its personnel to guide the dealers who would be filing such electronic returns. These officials would be in contact with specific dealers assigned to them. They will also help them about their login ID and Passwords.  If any dealer requires any assistance for filing of e-return he may contact the respective liaison officer who has been assigned for this job. The list of liasion officers is given on the Website www.mahavat.gov.in. If a dealer requires further assistance for filing e-return, he or his authorised representative may visit their respective Sales Tax authorities who will guide him regarding the e-filing of return. A dedicated help desk is also created in Mazgaon Office to answer the queries pertaining to e-returns. The dealer may contact the help desk at 022-23735621/ 022-23735816. If any dealer faces any problems which have not been sorted out to his satisfaction regarding E returns, he may also contact the office of Joint Commisioner of Sales Tax (Returns) in Mumbai or  the respective Joint Commissioners of Sales Tax in Mofussil Areas.                                
3.4   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 10 days 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. 

3.5  Change in return forms: The earlier return Forms 221, 222, 223, 224 and 225 have been replaced with the new returns Forms-231, 232, 233, 234 and 235, respectively.  A circular has already been issued for the applicability of new forms 231 to 235. These forms are made available on the website of the department. (www.mahavat.gov.in and www.vat.maharashtra.gov.in) A dealer can download these forms from the download menu of the website.  All the returns of these dealers, including the returns for the earlier period should now be filed in the aforesaid new return forms. 

3.6    Another amendment is made to sub-rule (1) and sub-rule (3) of Rule (5) of the Central Sales Tax (Bombay) Rules, 1957 to provide for Electronic return. The old return Form IIIB is now replaced by new Form IIIE.  This return also has to be filed electronically by the above mentioned  dealers and in the same manner.

4. 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.
    

5. 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..