No.
VAT-2006 / JC (Enf) C / TIN
Mumbai, dated January 9, 2006
Trade Circular No 3T of 2006
| Subject: |
1) Cancellation of Registration
Certificate under Bombay Sales Tax Act, 1959 under the provisions of Section
22 (8) –grant of administrative relief in certain cases. |
| |
2) Relief to Non-Resident
Circle Dealers who could not file TIN application.
|
| |
3) Administrative relief to the
dealers where the constitution has been changed or the place of business has
been changed from one local area to another local area.
|
|
Reference: |
1) Trade Circular No. 25T of
2004, dated 4th September 2004. |
| |
2)
Trade circular Nos. 37T, 38T
and 39T of 2005. |
Dear Sir / Madam,
PART I
Relief
in section 22(8) (BST Act, 1959) Cases
The Bombay Sales Tax Act,
1959, was amended and a new sub-section 22 (8) was introduced w.e.f. 1st
July 2004. As per the provisions of this sub-section, the Registration
Certificate of a reseller was liable to be cancelled, w.e.f., 1st
July 2004 if he did not exceed the prescribed turnover limit of Rs.5,00,000 in
the financial year 2003-04. The above mentioned Trade Circular 25T dated 4th
September 2004 the also provided that any reseller falling under the provisions
of this sub-section may continue his Registration Number if he applies for grant
of fresh Registration Certificate before 30th October 2004. Every
existing dealer was required to file a special return in form 18 D (for
BST Act) and III D (for CST Act) to complete this exercise.
2.
As mentioned above, the Registration
Certificates of the dealers falling under the above category were liable to be
cancelled unless the dealer opted for continuation of the same by filing a fresh
application for registration before 30th October 2004. In some cases,
however, the dealers have not applied before the prescribed date, i.e., 30th
October 2004 and continued to use the same RC for their business. Some dealers
have collected taxes and filed returns as well. In case of those dealers whose
Registration Certificate was either cancelled or was deemed to be cancelled
w.e.f. 1st July 2004, as per the provisions of section 22 (8),
following three situations have arisen:
2.1 The dealer has subsequently applied for
grant of fresh Registration Certificate under the BST Act, after 30th
October 2004 but on or before 31st March 2005.
2.2 The dealer has filed any application for
grant of fresh Registration Certificate under the MVAT Act, on or after 1st
April 2005.
2.3 The dealer has not filed any application
for grant of fresh Registration Certificate. There could be further
sub-categories as under:
a.
The dealer has discontinued his business
before 1st July 2004.
b.
The dealer has discontinued his business
between 1st July 2004 and 31st December 2005.
c.
The dealer has continued his business
beyond 31st December 2005.
3.
In all the situations mentioned above
(except in para 2.3 a), the dealer might have remained un-registered for some
period during which he may have collected taxes and filed returns. As per the
provisions of the Bombay Sales Tax Act, 1959 and MVAT Act 2002, an un-registered
dealer cannot collect taxes and taxes, if collected, are liable to be forfeited
including levy of penalty. The Trade has made representations that in many
cases, the order of cancellation of RC has been passed after considerable
passage of time, therefore, the dealer did not know that his Registration
Certificate would be cancelled w.e.f. 1st July 2004. Some small
dealers were not aware of the legal provisions and consequential repercussions
of continuing their business as URD. Moreover, the dealers covered by the
contingency mentioned in para 2.3 c supra, have also not been able to apply for
grant of TIN by filing application in form 108 because they were not existing
VAT dealers as on 1st December 2005. The Trade has represented to
give relief to these dealers for such intervening URD period. Considering the
hardship that such dealers and other dealers having dealt with them may have to
face, following relief will be admissible to these dealers as per the procedure,
terms and conditions mentioned in this part of this circular.
4.
The dealers whose RC has been cancelled or
is liable to be cancelled as per the provisions of section 22 (8) of Bombay
Sales Tax Act, 1959, may apply in the enclosed form 107-A to continue their RC
for the intervening URD period starting from 1st July 2004. This
relief will be admissible to the dealers covered under the categories enumerated
in paras 2.1, 2.2, 2.3 b and 2.3 c. The concerned assessing officer will
revalidate the original BST RC by writing “Revalidated from 1st July
2004 upto _______”. The dealers will have to pay a compounding fee of Rs.2000/-
(Rupees two thousand only), to be paid in the Government Treasury, by way of
challan in form 210, to get this administrative relief. The period of relief
will be as under:
a.
For dealers covered by paras 2.1, 2.2 and
2.3 c, the period of relief will be from 1st July 2004 upto the date
of effect of new BST / VAT RC, if the dealer has obtained the same, or upto 31st
December 2005, whichever is earlier.
b.
For dealers covered by para 2.3 b, the
period of relief will be from 1st July 2004 upto the date of
discontinuance of business.
5.
The dealers covered under category
described in para 2.3 c, if they so wish, should apply for grant of TIN by
filing an application in form 108 along with form 107-A. The application in form
108 should be made with a fee Rs.2000/- (Rupees two thousand only), to be paid
in the Government Treasury, by way of challan in form 210. It is needless to say
that the fee for blank form 108 will remain Rs. 100. The terms and conditions
for filing the application in form 108 have been prescribed in the trade
circulars 37T, 38T and 39T of 2005. The same shall be applicable in this case
also. The Registration Certificate of a dealer, who applies for grant of TIN in
form 108, will be revalidated upto 31st March 2006, beyond which he
will get a new RC, bearing TIN. It may be noted that the administrative relief
admissible to the dealers by way of form 107-A can be availed of separately. In
other words, it is not necessary for a dealer to make an application in form 108
for grant of TIN to avail of the benefit of the administrative relief, described
in para 4, unless he also wishes to apply for grant of TIN. The fees mentioned
in this para and para 4 above are mutually exclusive.
6.
If the dealer has already filed the
application in form 108 for conversion of his CST RC to TIN, he may approach the
officer with whom the TIN application has been filed and amend the same
application, attach the original BST RC and fill in the relevant details like
BST RC Number etc. Needless to say, the dealer will have to fulfill the
conditions mentioned in paras 4 and 5 hereinabove to make such amendment.
However, if the dealer has already paid a late fee of Rs. 2000, he need not pay
the fee referred to in para 5. The fees mentioned in paras 4 and 5 hereinabove
are mutually exclusive.
7.
In some cases, the Registration Certificate
of a dealer has been cancelled inadvertently, e.g., non-filing of return in form
18-D in spite of having turnover of more than Rs.5, 00,000; cancellation of
Registration Certificate of a manufacturer or importer etc. Such dealers should
apply in the enclosed form 107-B and attach relevant documents to prove that his
RC was not liable to be cancelled under the provisions of section 22(8) of the
BST Act, 1959. On submission of form 107-B and such proof, his RC would be
revalidated ab-initio. In these cases, the dealer may apply for grant of
TIN in form 108, without payment of any fee, except the cost of form 108 (Rs.
100). Such dealers have to withdraw the appeals filed, if any, and show the
proof of having applied for the same at the time of submission of application in
form 107-B and form 108. They must also submit proof of having filed the due
returns including the annual return(s) of the un-assessed periods.
PART II
Relief to NRC dealers
8.
This office has received several
representations that some NRC dealers have not been able to apply for the grant
of TIN in the prescribed time period, mainly because they are located in remote
areas all over the country. It is, therefore, decided to give them one more
opportunity to file their applications in form 108. The NRC dealers should file
the application in form 108 with a fee Rs.2000/- (Rupees two thousand only), to
be paid in the Government Treasury, by way of challan in form 210. The fee for
blank form 108 will remain Rs. 100. The terms and conditions for filing
application in form 108 have been prescribed in the trade circulars 37T, 38T and
39T of 2005. The same shall be applicable in this case also. The Registration
Certificate of an NRC dealer, who applies for grant of TIN in form 108, will be
revalidated upto 31st March 2006, beyond which he will get a new RC,
bearing TIN.
PART III
Relief in cases of
change in constitution and change of place of business
9.
There are instances where business is
continued but the dealer is required to obtain a new Registration Certificate
(as per situations described in section 19 of the BST Act, 1959 and section 44
of the MVAT Act 2002). Similarly whenever the dealer shifts his place of
business from one pin-code area to another, he is required to apply for grant of
fresh RC. In many of such cases, the dealer has not obtained new Registration
Certificate but has continued to use the old Registration Certificates for
collection and payment of taxes. Such dealers should have applied for grant of
fresh RC within the prescribed period. Some dealers have overlooked these
aspects and not applied for the grant of new RC within the prescribed period or
not applied as yet. Trade representations have been received to regularise such
cases by way of administrative relief. Considering the hardship that such
dealers may have to face, especially in the context of switchover to TIN form 1st
April 2006,following relief will be admissible to these dealers as per the
procedure, terms and conditions mentioned in this part of this circular.
10.
The dealer whose RC has been cancelled or
is liable to be cancelled in the circumstances mentioned in para 9, may apply in
the enclosed form 107-C to continue his RC for the intervening URD period. The
period of relief will be upto the date of effect of new BST / VAT RC, if the
dealer has obtained the same, or the date of application, whichever is earlier.
The concerned assessing officer will revalidate the original RC by writing
“Revalidated from ______ upto _______”. The dealers will have to pay a
compounding fee of Rs.2000/- (Rupees two thousand only), to be paid in the
Government Treasury, by way of challan in form 210, to get this administrative
relief. The dealer will have to produce the documents required to prove
continuance of business, e.g. copy of challans and annual returns.
11.
The dealers covered under category
described in para 9, if they so wish, should apply for grant of TIN by filing an
application in form 108 along with form 107-C. The application in form 108 can
be made with a fee Rs.2000/- (Rupees two thousand only), to be paid in the
Government Treasury, by way of challan in form 210. The fee for blank form 108
will remain Rs. 100. The terms and conditions for filing application in form 108
have been prescribed in the trade circulars 37T, 38T and 39T of 2005. The same
shall be applicable in this case also. The Registration Certificate of a dealer,
who applies for grant of TIN in form 108, will be revalidated upto 31st
March 2006, beyond which he will get a new RC, bearing TIN. It may be noted that
the relief admissible to the dealers by way of form 107-C can be availed of
separately. In other words, it is not necessary for a dealer to make an
application in form 108 for grant of TIN to avail of the benefit of the
administrative relief, described in para 10, unless he also wishes to apply for
grant of TIN.
PART IV
Common conditions to
avail of the administrative relief admissible in part I and III
12.
The dealer must file all the returns due
(including annual returns) upto December 2005.
13.
All the pending dues (including return and
assessed dues) must be paid in full, except in cases where installments have
been granted or recovery has been stayed.
14.
The dealer should attach the self attested
copy of the challans/ returns for the un-assessed periods along with relevant
form (107-A or 107-C).
15.
The conditions mentioned in paras 12, 13
and 14 are not preconditions for submission of TIN application in form 108 by
the dealers covered under paras 5, 8 and 9.
PART V
General
16.
The prescribed period for making the
applications in form 107-A, 107-B, 107-C and 108 will be from 16th
January 2006 to 10th February 2006.
It may be noted that the prescribed time limit
will not be extended under any circumstances.
17.
The order for grant of administrative
relief will be passed latest by 28th February 2006.
18.
The relief described hereinabove will be
admissible only to the dealers falling under various categories as explained
above.
19.
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.
20.
You are requested to bring the contents of
this circular to the notice of all the members of your association.
(B. C. Khatua)
Commissioner of Sales Tax,
Maharashtra, Mumbai.
FORM 107-A
(Read the Trade Circular No.
3 T- of 2006)
Application for
administrative relief for cases covered under section 22(8) of BST Act, 1959
To,
--------------------------------
---------------------------------
---------------------------------
I hereby apply for
revalidation of my Registration Certificate under Bombay Sales Tax Act, 1959 and
for grant of administrative relief provided for in the Trade Circular __T of
2006.
1.
Name of the Applicant (in capital letters)
__________________________
________________________________________________________________
2.
Registration Certificate No. of the dealer under
the Bombay Sales Tax Act, 1959.
________________________________________________
3.
No. & date of R.C. cancellation order, if
received by the dealer ________
4.
Name and style of business (in capital letters)
______________________
________________________________________________________________
5.
I hereby declare that, my registration
certificate under the Bombay Sales Tax Act, 1959 has been cancelled / was liable
to be cancelled under section 22(8) with effect from 1st July 2004.
6.
*I
have taken a fresh BST/VAT R.C. w.e.f.
having R. C. number
7.
*I
have discontinued my business from ______________________
8.
I am submitting my old BST RC for revalidation.
9.
The period of relief sought for / continuation
of my old BST RC is from 1st July 2004 to
10.
*Whether
Form No 108 for CST TIN has already been submitted? Yes
No
11.
*If
No, Form No. 108 is being submitted along with this form.
The above statements are
correct and true to the best of my knowledge and belief.
* Strike off whichever
is not applicable.
Date ________________
Signature
Place _________________
Status and authority thereof
FORM 107-B
(Read the Trade Circular No.
3T- of 2006)
Application for revalidation in cases of wrong
cancellation of RC under section 22(8) of BST Act, 1959
To,
---------------------------------
---------------------------------
---------------------------------
I hereby apply for
revalidation of my Registration Certificate under Bombay Sales Tax Act, 1959 and
for grant of administrative relief provided for in the Trade Circular __T of
2006.
1.
Name of the Applicant (in capital letters)___________________________
_________________________________________________________________
2.
Registration Certificate No. of the dealer
under the Bombay Sales Tax Act, 1959._____________________________________________________
3.
No. & date of R.C. cancellation order ______________________________
4.
Name and style of business (in capital
letters) ______________________
_________________________________________________________________
5.
I hereby declare that, my registration
certificate under the Bombay Sales Tax Act, 1959 was not liable to be
cancelled under section 22(8).
6.
Reasons for claiming continuance of the RC
7.
I am submitting my old BST RC
for revalidation
8.
I am enclosing self-attested
copies of the all the returns due (including annual returns) for all the
un-assessed periods, upto November 2005
9.
*I have not filed any appeal
against the order of cancellation of R.C.
10.
*I
have filed an appeal to and I am
submitting a copy of the duly acknowledged application for withdrawing the same.
11.
*Whether
Form No 108 for CST TIN has already been submitted? Yes
No
12.
*If
No, Form No. 108 is being submitted along with this form.
The above statements are
correct and true to the best of my knowledge and belief.
*
Strike off whichever is not applicable.
Date_______
Signature
Place _______
Status and authority thereof
FORM 107-C
(Read the Trade Circular No.
3 T- of 2006)
Application for
administrative relief in cases of change in constitution and change of place of
business
To,
---------------------------------
---------------------------------
---------------------------------
I hereby apply for
revalidation of my Registration Certificate under Bombay Sales Tax Act, 1959 and
for grant of administrative relief provided for in the Trade Circular __T of
2006.
1. Name of the
Applicant (in capital letters) __________________________
________________________________________________________________
2.
Registration Certificate No. of the dealer under the Bombay
Sales Tax Act, 1959.
______________________________________________________
3.
*No. & date of R.C. cancellation order, if received by the dealer
________
4. Name and
style of business (in capital letters)_______________________
_________________________________________________________________
5. I hereby
declare that, my registration certificate under the Bombay Sales Tax Act,
1959 has been cancelled / was liable to be cancelled on the following
grounds:
6.
*I have taken a fresh BST/VAT R.C. w.e.f.
having R. C. number
_______________________________________________
7. I am
submitting my old BST RC for revalidation
8. I have
continued my business during the URD period
9. I am
enclosing self-attested copies of the all the returns due (including annual
returns) for all the un-assessed periods, upto November 2005
10. The period of relief
sought for / continuation of my old BST RC is from ________ to _______
11.
*Form No. 108 is being submitted along with this form.
The above statements are
correct and true to the best of my knowledge and belief.
* Strike off whichever
is not applicable.
Date _____
Signature
Place _____
Status and authority thereof
|
