applicable) i.e. Annexure J1 & J2 respectively List of CST Declaration Received & Not Received Ratios prescribed in Annexure F (as may be applicable)

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1 Earlier the penalty was restricted to Rs. 1,00,000 but same was deleted by Mah 25 of 2007 (w.e.f ) Due date to file VAT Audit is 9 months & 15 days from the end of the financial year, which is covered under VAT Audit Details to be filed in the e Form 704 are as follows: Annual Purchase & Sales Details VAT Tin No. wise Sales & Purchase (as may be applicable) i.e. Annexure J1 & J2 respectively List of CST Declaration Received & Not Received Ratios prescribed in Annexure F (as may be applicable)

2 Importance of filing proper J1 & J2 Enables the Sales Tax Authority for cross check within no time due to which Assessment Procedure, Business Audit Procedure & Refund Audit Procedure are completed in less time if Annex. J1 & J2 filed properly Check whether Purchaser s Tin number is not covered underthelist of Hawala/Short Filer/Non Filer as displayed on the Mahavat Site to avoid the disallowance of ITC & to avail correct amount of ITC/Refund

3 VAT Audit is also to be filed Online & also required to submit the Acknowledgment to the Sales Tax Authority in the time stipulated by the Circular issued on timely basis It is better to collect all the Declaration under CST Act before the Audit due date, to avoid additional compliance of the dealer & compliance cost as well

4 At the end of the financial i year i.e. while filing March ending Return if there is Excess Credit over Tax Payable then the Dealer is liable to claim Refund unless there is some Trade Circular/ Notification issued to carry forward the relevant refund to next period VAT Refund is to be applied in the E Form 501 as prescribed by the Act. Such Refund is to be claimed within 18 months from the end of the financial year to which such refund relates There is a view that if the Refund Application is not made within the time prescribed as per the Act then there is no provision in the Act for self assessment through which the dealer can claim the refund

5 therefore it is very essential that the dealer files the E Refund application in time to claim the refund & to avoid the loss. Details required to file Form 501 online Invoice wise & Date wise Purchase Register for such period If any transaction made against any Forms under CST Actthen then Details of Forms Received & Not Received. If previous year Excess is also included in the relevant period due to which there is an Excess of Credit for the current year then All the details mentioned above are required for both the years

6 Eg: Suppose an ABC, a Registered Dealer under MVAT Act, 2002 has excess of Rs. 50,000 in the F.Y & there was trade circular issued dto carry forward dthe amount till Rs. 1 Lac & in the current year i.e. F.Y there is an excess of Rs. 1,20,000/ (50,000/ + 70,000/ of the current year) & no Circular is issued then all the required details are to be furnished for the both the relevant years i.e. F.Y &

7 Every Dealer covered under LTU i.e. Large Taxpayer Unit, mandatory assessment is conducted by the Sales Tax Authority, other than LTU there is generally self assessment under MVAT Assessment Section 23 : For the period ending on or before March h2008, Od Order of assessment can be passed within a period of 7 years from the end of the year containing the said period For the period beginning on or after March 2008 & where returns are filed within the prescribed time then the order of assessment can be made within a period of 4 years & if returns not filed within the time then 5 years from theendofend theyear containing said period

8 Notice for assessment can now be issued at any time r.w sec.23, earlier time limit to issue notice was specified u/s 21 which is now deleted by Mah. 6 of 2011 wref w.r.e.f. 01/05/2005 As per Rule 68 Books of Accounts are to preserved for 8 years from the expiry of the year to which they relate. Books of accounts basically includes registers & documentsrelating to thestock stock, purchasebills bills, sale bills, dispatches, deliveries of goods & payment made & receipt towards purchase & sale of goods. For Non compliance of any section/provision there are penalty proceedings u/s 29 & Interest Provisions u/s 30

9 Profession Tax Enrollment (PTE) is the Tax for the person s carrying out any profession or business in the State of Maharashtra There are Schedule Entries from 2 21 in the Act which clarifies who all has to pay PTE & who has to comply the provision under the Profession Tax Act As covered under the Schedule Entries of the Act, person has to pay tax Rs.2,000/ 000/ or Rs. 2,500/ 500/ as may be applicable for each year If any person pays PTE for 5 years at once then 1 year PTE amount is exempt as way of benefit given to the person i.e. person paying such amount has to pay only PTE for 4 years

10 Person can deposit PTE amount directly In the State Bank of India or can do e payment Due Date for payment of PTE is 30 th June of each year i.e. PTE for F.Y would be 30 th June 2012 Payment is to made in MTR 6 Interest on late payment of PTE is 1.25% for each month/part there of. No PTE is to be paid by Senior Citizen/parents of mentally retarded child for the purpose of the Act, senior citizen is the person of age more than 65 years i.e. completed 65 years as per Sec 27A

11 Profession Tax Registration (PTR) is the Tax to be deducted from Salary paid by the employer employing any employee for Salary above Rs. 5,000/ 000/ in thestate of Maharashtra Amount of Tax to be deducted is as per Sch. 1 of the Act: S C H E D U L E 1 Salary and Wage earners Such persons whose monthly salaries or wages : w.e.f (a) do not exceed rupees 5,000; (b) Exceeds rupees 5,000 but do not exceed rupees 10,000; (c) exceeds rupees 10, Amount of Tax to be deducted Nil Rs. 175 each month (a) Rs.200 each month (b) Rs. 300 for the month of February

12 Amount of the Tax to be paid is as per the periodicity mentioned below: Amount of Tax Payable in Previous Year Periodicity i (a) Annual Tax Liability is below Rs. 50,000/ (b) Annual Tax Liability is above Rs. 50,000/ Annual Monthly (c) If current year is the First Year Monthly Above mentioned periodicity is w.e.f PTR Returns are to be filed in Form III & e payment is to be made in MTR 6. E payment is mandatory

13 Due to file PTR Return & Payment both is the 30 th day of the month from the end of each Month/Year Return for the month of Mar 12 will include Salary for the month of Feb 12 i.e. Return for the current month will include the Salary of the previous month as explained above Interest on Late Payment of Tax is 1.25% for each month/part thereof Late Fee for filing late return is Rs. 1,000/ each return All PTR Holders have to file E Return w.e.f. 01/08/2011 vide Notification No. VAT/ADM 1010/IB/PT/Adm 6 dtd. 14/07/2011

14 All PTR Tin Holders have to make Mandatory E Payment in MTR 6 w.e.f. 01/07/2012 vide Notification No. PFT 1012/C.R. 29/Taxation 3 dtd. 14/06/2012 For the Purpose of Act, Sec 2(h) defines Salary or Wage as pay or wages, dearness allowance and all other remunerations received by any person on regular basis, whether payable in cash or kind, and also includes perquisites and profits in lieu of salary, as defined in section 17 of the Income tax Act, 1961, but does not include bonus in any form, and on any account or gratuity E enrollment for PTR is also to submitted to avail e facility under PT Act

15 Following items are to be excluded from Salary as per Circular No. 1076/Cir. 29/ 76 dtd. 05/06/1985: Medical aid reimbursement Leave Encashment Travelling Allowance Conveyance Allowance Washing Allowance Stipendpaid paid to trainees Salary paid to apprentices Leave travel assistance Bonus Gratuity Pension

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17 PRESENTER S CONTACT DETAILS: C.A. Krunal J. Davda J R Davda & Associates ADD: 101, 102 Thanawala Apt, Opp Vikam Book Depot, Jambli Naka, Thane(W) Tel No : / ID: krunal_davda@yahoo.co.in krunal.davda@gmail.com