Sales Tax Review

February 2008

TRADE CIRCULAR.

No. DC(SO)/TRADE CIR/B-81

Gentlemen/Sir/Madam,

1. It has come to notice that a large number of dealers are filing incorrect or incomplete returns. Some of the common mistakes observed are as follows: 

1. TIN not recorded on the return,

2. Incorrect TIN recorded on the return

3. Illegible TIN or affixing of rubber stamp in place of TIN, which is not legible.

4. TIN and name of the dealer are inconsistent

5. Return period is not mentioned on the return

6. Return filed in the old forms (repealed forms such as form 201 instead of form 221or in BST return form),

7. Tax paid in Banks, not notified for  collection of taxes.

For these reasons the returns do not get recorded against the dealer data including details as to whether the dealer has filed returns is not available to the department.
The dealers are, therefore, requested to take the due care in preparing the returns and not to repeat the mistakes enumerated above.

2. A large number of representations and requests have been received from the dealers and the practitioners requesting to allow such dealers to file the copies of their returns with corrected data of the abovementioned returns. Considering the requests received by this office and to remove the inconvenience and difficulties faced by such dealers, the following instructions are issued:

1. The Officer, in any of the functional branches, who obtains the copies, shall furnish an acknowledgment (in the enclosed format) to the dealer or practitioner, from whom such copies of the returns have been obtained.

2. The said officer, shall keep copies of the returns with his office and forward another set to the Returns Branch, immediately.  Returns branch shall keep a record of such returns received from other offices or obtained by their own officials.

3. Recently, instructions have been issued that the dealers, who apply for the declarations in form C etc. should furnish a statement (Specified in the Trade circular No 1T of 2008) along with  proof of the returns filed by them from 1-4-2005 onwards. The dealers are advised to furnish 2 copies of the said statement, so that one of the copies can be returned   as  acknowledgment.

4. In case, a dealer who has already given the copies of the returns in the above manner receives  any query for the same returns from any other officer in the same or another  functional division, then the dealer may show the acknowledgment to that   officer and he will not be required to submit the copies of the Returns again.

5. The Returns branch shall maintain systematically the copies of the returns so obtained. In case any of the departmental authorities requests for  copies, the said shall be made available for reference or record.

6. The departmental authorities shall ensure that the said scheme functions smoothly.

4. This exercise is aimed at removing the difficulties faced by the dealers/Tax practitioners
    
5. 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.
    
6. 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.