KARNATAKA STATE BEVERAGES CORPORATION LTD

Transcription

1 KARNATAKA STATE BEVERAGES CORPORATION LTD LIQUOR SALES POLICY CONTENTS Clauses Particulars Page Nos 1 Submission of initial documents 01 Details of organisation of the buyer Details of authorized signatories of the buyer Certified copy of license Certificate u/s. 206C of IT Act Certified copies of GPA etc 2 Web/e-indenting 01 e-indenting facility to CL-4 (Clubs), CL- 6A (Star Hotels) and CL-11C (MSIL outlets) user ID and password availability of funds membership fee 3 Issue of stocks 4 Sale price Deposit of DD/DT Ownership of stocks Responsibility of buyer Minimum purchase value Sale of loose bottles Sale on first-come-first serve basis Cold storage facility Fixation of price Request for provisional ledger extract Details of transaction of previous years Furnishing of details Recovery of difference amount 5 Payment for stocks purchased Computation Issue of stocks through EFT Lifting of stocks Responsibility of buyer

2 6 Tax collection at source 08 Remittance Certificate for tax collection Refund 7 Jurisdiction 09 8 Review of the policy 09 Annexures Particulars Page Nos I Details of organisation of the buyer 10 II Authorisation letter for dealing with 11 the depot of the Corporation III Authorisation letter for 12 transporters/persons taking delivery of stock IV Undertaking to be given by licensees 13 (buyers) V Format of maintenance charge for 14 storing wine in cold storage room VI List of designated Banks/Banks Accounts of KSBCL for direct transfer 15 *****

3 KARNATAKA STATE BEVERAGES CORPORATION LIMITED Circular No.217 Date: 31 st December 2013 Liquor sales policy for the year A detailed procedure for disposal of liquor has been prescribed in various circulars issued by the Corporation from time to time. This circular supercedes all previous procedures, so far as it pertains to disposal of liquor. Buyers are requested to take note of the procedure prescribed in this circular. 1. Submission of initial documents 1.01 Buyers desirous of procuring liquor from the Corporation shall submit the following documents, before they can be allowed to transact with the Corporation. (i) (ii) (iii) (iv) (v) Details of the organization of the buyer to be given in its letter head in the format in Annexure I. Details of authorised signatories of the buyer, who would deal with the depot of the Corporation, to be given in its letter head as per the format in Annexure II. Details of authorized transporter/person taking delivery of stock to be given in Annexure-III. Undertaking to be given by the Licensees in Annexure-IV. A certified copy of the licence granted by the Excise Commissioner under the Karnataka Excise (Sale of Indian and Foreign Liquor) Rules, 1967 as may be applicable to the buyer. Certificate, if any, from the Income Tax Department for collecting tax at a reduced rate under section 206C of the Income Tax Act, [Certified copies of GPA/Lease/Sub-lease/Appointment of Agents etc., shall be made available to the Depot in cases wherein the licensees have transferred their interest in the license]. 2. Web/e-indenting [The facility of Web/e-indenting is introduced to the licensees of CL-4 (Clubs), CL-6A (Star Hotels) and CL-11C (MSIL outlets). This facility enables the above licensees to request the stock from their respective KSBCL depots based on the previous day s closing stock. The Web/e-indenting module will be enabled to the above licensees with the following terms and conditions: 1. Inserted by Circular No.143 dated Inserted by Circular No.210 dated Circular No.217 Page 1 of 15

4 (i) (ii) e-indenting is available at user ID and password will be shared by the respective Depot Managers; (iii) only previous day s closing stock is available for making indent and actual servicing may vary depending upon the first come first serve basis; (iv) conditions like, subject to availability of funds in the licensee s credit, actual availability of stocks etc., contained in the Sourcing Policy of the Corporation would be applicable for converting the e-indent to invoice and will be serviced at the respective KSBCL depots. (v) at the time of servicing first e-indent Rs.100/- will be deducted as one time membership fee]. 3. Issue of stocks 3.01 Issue of stocks shall ordinarily be between 11 am and 6 pm. All buyers shall ensure deposit of DD/DT before 3 pm of the day. The Depot Manager/authorized person should record the time and date of receipt of DD/DT in the prescribed register. The Depot Manager shall service all the buyers the same day, who deposit DD/DT before 2 pm, plus a maximum of 20 DD/DT, deposited during 2 pm to 3 pm. Such service shall be only to those who fulfill the following conditions : (i) authorized person is present (ii) 1[Retailers should transfer the required fund from their accounts to the KSBCL depot account electronically and submit the proof to that effect to the Depot Manager. Based on the proof, Depot Manager will check the account and confirm the depositing / crediting the amount to the KSBCL Depot account and arrangements made for issue of stock.] (iii) Vehicle for taking delivery has been brought and is available in the Depot premises. Among those who fulfill all the above 3 conditions, service shall be on first come first serve basis Ownership of stocks sold to buyers shall pass on to them immediately upon delivery at the depot. Buyers shall verify the goods before accepting delivery. No claims shall be admitted for shortages or breakages after delivery. 1. Inserted by Circular No.167/ Circular No.217 Page 2 of 15

5 3.03 Buyers are responsible for loading the purchased goods into their vehicle and transport the same to their destination at their risk and cost. Any damages arising during handling of goods at this stage shall be their responsibility. Under no circumstances, shall any claim for damages be entertained after handing over the goods and no depot shall accept return of goods after issue. 1[3.04 Sale of goods shall be for a minimum value of Rs.50,000/- in Bangalore Urban and Bangalore Rural District depots and Rs.30,000/- in other depots. However, 10% variation on the lower side is permitted on the value (while the credit balance of the buyer including DD/DT shall not be less than Rs.50,000/- and Rs.30,000/- respectively, the buyer s invoice value could be lower by 10% i.e. the minimum sale value shall be Rs.45,000/- and Rs.27,000/- respectively, after TCS). Further, (a) If there is no stock or shortage of stock of goods indented by the licensee, to that extent the value of the invoice could be less than the prescribed minimum of Rs 50,000 or Rs 30,000, as the case may be. b) Within the above limit, sale of loose bottles of any particular brand shall be only to the extent of loose bottles available in the depot. However, such restriction shall not apply to: i. Premium brands costing Rs.4000/- & above per CB, subject to minimum of 3 bottles of 750 ml. or 6 bottles of 375 ml and, ii. Sale of inner cartons if provided in a CB. In case of Inner Carton Boxes instructions in para 6.08 of Sourcing Policy apply.] 2[(iii) 3[(iv) [(v) Brands costing between Rs.2500 and Rs.4000 per carton box, subject to minimum of 6 bottles of 750 ml and 12 bottles of 375 ml. Such purchase is allowed once in a month.] Sale of Beer only shall be for a minimum value of Rs.20000/- (Rupees Twenty thousand only) Sale of Wine only shall be for a minimum value of Rs.10000/- (Rupees Ten Thousand only).] 1. Substituted by Circular No.140 dated Inserted by Circular No.154 dated Inserted as per Circular No.158 dated ) Circular No.217 Page 3 of 15

6 1[(vi) carton box. Loose sale of 180 ml premium brands costing Rs.2500 and above per Size Loose bottles of 60ml and 90 ml bottles 180 ml bottles Inner carton to be provided Issue of loose bottles also permitted (as per Circular No.185 dated ) For every 12 bottles i.e. 4 inner cartons for a carton box containing 48 bottles. For every 24 bottles, i.e. 2 inner cartons for a carton box containing 48 bottles. Each inner carton shall be superscribed with the relevant EAL nos., from and to pertaining to 12 or 24 bottles in each inner carton. The outer carton shall contain the entire details of EALs pertaining to 48 bottles. EAL number in respect of inner and outer cartons shall be superscribed in the existing format as given below : Supplies to KSBCL Manufacturer/Suppler Name and Address Excise Adhesive Label No: From to Those manufacturers / suppliers who comply with the above requirements and products packed accordingly will be offered for sale. Manufacturers / Suppliers who proposes to introduce inner cartons shall obtain prior approval from the Corporation before supply The depot shall sell stocks on first-cum-first serve basis The Sales Invoices raised on the Buyer shall be subject to the terms stipulated in this policy. 1. Inserted by Circular No.180/ ) Circular No.217 Page 4 of 15

7 1[3.07 The manufacturers can made use of the cold storage facility arrangement at the IML Depots at Plat Form Road and K.G.Halli, Bangalore, for which Corporation will levy user charges at Re.0.50 (Fifty paisa only) per day per CB (inclusive of all taxes). The amount of charges will be recovered weekly (Monday-Sunday) from immediately forth coming weekly payment. The period of storage in each cycle shall be calculated as per Annexure-V]. 4.0 Sale price 4.01 The price to be charged for the stock issued shall be as fixed by the Corporation periodically. The Corporation reserves its right to revise the sale price and such revised prices shall be effective on such dates as may be specified The depot manager shall provide a provisional extract of the ledger balance of the buyer as and when so requested which however, is subject to final confirmation by the Head Office. The buyer may seek clarifications in the sales invoices raised by the Corporation within one week of the sale. Corrective action as may be necessary would be taken based on the buyer s representation. Generally, the Corporation would not entertain clarifications on the sales invoices raised after one week of the sale [The details of transactions for previous years are available in the HO database. If a request is received for such data, it has to be retrieved and provided to the concerned retailers. This involves time and effort by the Corporation officials In view of this, a fee of Rs.100/- (by DD) is prescribed for providing the details of transactions of one year or part thereof beyond the initial period of one week. The retailers may be advised to remit the necessary fee and approach the KSBCL, HO through the concerned depot for the information, if such data is requested by the retailers.] 4.05 The Corporation is entitled to recover differences due to short billing, excess dispatches, price differences, short collection of TCS or any other reason, immediately after such instances are noticed by it. However, such balance amounts, if any, un-paid within a week from demand shall carry an interest of 18 per cent per annum. The Corporation is entitled to adjust such amounts immediately out of any payment received or out of any other credit lying in favour of the buyer.. 1. Inserted by Circular No.166 dated Inserted by Circular No.206 dated Circular No.217 Page 5 of 15

8 1[5. Payment for stocks purchased 5.01 Issue of stocks shall be either through Electronic Fund Transfer (EFT) or local Demand Draft or Pay Order. Payment through Bank Challan stands discontinued and therefore reference to Bank Challan if any in respect of payment by retailers to KSBCL stands cancelled, wherever it occurs. The preferred mode of payment shall be EFT as it results in immediate fund transfer to KSBCL account unlike DDs. EFTs may be effected through any one of the 13 Banks detailed at Annexure-VI Electronic Fund Transfer works as follows : i. The retailer may open an account with any of branch of the 13 Banks, and seek EFT facility. The Bank gives EFT facility including account holder s ID and Password. The retailer shall inform KSBCL that he has designated this account as his account for transfer of funds to KSBCL. ii. Retailer shall transfer funds electronically to KsBCL Depot account from the said designated account only. He gets a printout of the transaction with unique transaction number (This is called transaction slip). iii. Retailer or his authorized representative goes to the Depot with the said transaction slip and shows it to the Depot Manager. iv. Depot Manager accesses his depot account on the Web, through the password, and verified whether the credit has come to his account as per the details in the transaction slip and whether it has come from the designated account of the retailer. v. If the credit has come and it is from the designated account, he delivers the goods to the retailer. vi. The system permits the retailer to transfer funds to KsBCL through any Internet gateway, at their home office, cyber café, bank, depot etc., at their convenience. The system also facilitates transfer of funds at any hour of the day. 1. Substituted by Circular No.182 dated Circular No.217 Page 6 of 15

9 vii. The EFT facility may include Direct Debit mode of payment, whereby the Retailer, Bank and KSBCL have a tripartite agreement in terms of which the retailer can authorize the Depot Manager to directly debit his account for the value of stocks to be purchased by him. The Bank will allot a password to the Depot Manager to carry out this transaction and the credit will only be to KSBCL s account and not others. Total limits for issue of debit usages can also be fixed for added security Lifting the stocks for having transferred funds through Electronic Fund Transfer (EFT) and such funds not credited to KSBCL current accounts with the banks by the licensees or Dishonour or back reference of the demand draft/pay order/dt by the Occasional licensees will lead to following action by HO/Depot Manager, whoever notices the default earlier :- i. Supplies to the buyer will be stopped forthwith. ii. The Excise Officer in-charge of the depot shall be requested in writing to seize all the stocks in the retailer s shop and direct the retailers to return the stock/s in the shop to KSBCL. Further, Supplies to the retail licensee shall be resumed only with the prior permission of the MD who shall : a. Levy restoration charges of Rs.50,000/- b. Recover 24% plus applicable taxes if any, on the value of stocks not recovered by excise department, but limited to the value of sales invoice covered by the impugned DD/DT/EFT.] 1[5.04 It is buyer s responsibility that he takes delivery of goods only after making payment thereof. He should verify at his end that all purchases made by him have duly been paid. If during reconciliation or otherwise it is found that any retailer has taken delivery of gods and has not taken reasonable care to verify or failed to verify from his 1. Substituted by per Circular No.167 dated ) Circular No.217 Page 7 of 15

10 account whether payment thereof has been made to KSBCL and has not pointed out any discrepancy immediately to KSBCL, it shall be deemed as dishonest practice by the retailer, unless proved otherwise and in such cases the following action shall follow : i. Supplies to the retailer shall stop forthwith ii. Retailer shall pay and KSBCL shall recover the short payment with interest at 24% for the period of delay in payment. iii. The supplies to the retailer shall resume only after payment of restoration charges of Rs.25,000/ Buyer may deposit a fixed amount and lift stocks against such deposit. The Corporation would not pay any interest for the deposit. They may replenish the deposit periodically.] 1[5.06 Payment by way of Demand Drafts will also be accepted from all the CL-5 Licensees (Occasional Licensees) with immediate effect. The Demand Draft shall be drawn in favour of Karnataka State Beverages Corporation Limited, payable at Bangalore. The depot Manager shall issue stocks to the CL-5 licensees for the value of the Demand Draft immediately. Such payments will be accounted in the respective Depots and the DD shall be forwarded to HO by courier on the same day.] 6 Tax collection at source 6.01 The Income Tax Act 1961, under section 206C provides for tax collection at source. Tax would be collected at the time of receipt of amount for sale of goods, at 1% of the sale price (inclusive of excise duty and other applicable taxes). A surcharge and Education Cess is to be added as specified. However, these rates are subject to change from time to time A part of the remittance made by the buyer shall be first appropriated towards tax to be collected. The tax so collected would be remitted by the Head Office and necessary certificates forwarded to concerned depots for onward transmission to buyers. Certificates shall be issued at the end of the relevant financial year, on or before May 31 st The buyer is entitled to approach the Assessing Officer for issue of a certificate for tax collection at a rate lower than the one prescribed. The buyer may enclose the certificate from the Assessing Officer with a covering letter and authenticate the certificate by affixing his signature on its reverse, after which the Corporation shall act upon it. It may be noted that such certificate shall have to be in favour of the licencee. 1. Amended by Circular No.178 dated Circular No.217 Page 8 of 15

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12 Name of the organization Details of the organization of the buyer (To be given in the letter head of the organization) Annexure - I Type of the organization Company/Partnership/Sole Proprietorship PAN No. Particulars of the Chief Executive/Managing Partner/Owner Address of the retail shop/bar City/Town Pin Code Phone No. STD Code Phone No. Fax No. STD Code Phone No. Mobile No. Name Address Phone No. (With STD Code) (1) (2) (3) (4) (5) Details of Excise Licence Licence No. Type of Licence Particulars of the other Directors/ Partners, if any Range Validity of Licence - From Depot TIN No. PAN No. Form 27G (Reference No.) Validity of 27G From To Applicable rate of rebate* Total amount of Tax Collected at Source as per Form 27G (TCS) Form No.27G enclosed. Fax No. (With STD Code) Validity of Licence - To Date: Sd/- Chief Executive/Managing Partner/Owner (Name/s) Circular No.217 Page 10 of 15

13 Authorization letter for dealing with the depot of the Corporation (To be issued in the letter head of the retailer) Annexure - II (Paste attested photograph of the person here) We hereby authorize Sri... (name of the person) whose signature is attested below to deal on our behalf with the depot of the Corporation. We also certify that action of the authorized signatory/ies is binding on the buyer. Place: Date: Authorized signatory Name Licence No/Date: Address: Signature of Sri. (name of the person) Attested Authorised signatory (Name) Circular No.217 Page 11 of 15

14 Authorization letter for transporters/persons taking delivery of stock (to be issued in the letter head of the buyer) Annexure - III We hereby authorize Sri...(name of the person)/transporter whose signature is attested below to take delivery of the stock on our behalf from the depot of the Corporation. We also certify that action of the authorized signatory/ies is binding on the buyer. Place: Date: Authorized signatory Name Licence No/Date: Address: Signature of Sri.. (name of the person) Attested Authorized signatory (Name) Circular No.217 Page 12 of 15

15 To, UNDERTAKING TO BE GIVEN BY LICENSEES (Buyers) (To be given in the letter head of the organization) The Managing Director, Karnataka State Beverages Corporation Limited Seethalakshmi Towers, No. 78, Mission Road, BANGALORE Dear Sir, Please refer to the above. Sub: Purchase of Liquor Reg Ref: Sales Policy of the Corporation for the year *** Annexure IV We are in receipt of the Corporation s Sales Policy for liquor relating to the year and have gone through the same in detail. In this connection, we hereby undertake to purchase liquor from the Corporation in accordance with the Corporation s Sales Policy. Tanking You, Yours faithfully, Signature of the Licensee. Circular No.217 Page 13 of 15

16 LEDGER NO. SUPPLIER NAME: SUPPLIER CODE: Format of maintenance charge for storing Wine in the Cold Storage Room Annexure -V Circular No.217 Page 14 of 15

17 LIST OF DESIGNATED BANKS / BANK ACCOUNTS OF KSBCL FOR DIRECT TRANSFER Annexure - VI Direct Transfer is permissible as per para 4.01 of the Liquor Sales Policy, through any of the branches of the following Banks. However, such branches should have Core banking facility (i.e. any where banking facility). The bank accounts of the KSBCL, to which Direct Transfer should be made is indicated against the concerned bank. Sl. No. Name of the Bank Branch 1 State Bank of India J.C.Road 2 UTI Bank M.G.Road 3 ING Vysya Bank K.G.Road 4 ICICI Bank M.G.Road 5 Syndicate Bank Avenue Road 6 State Bank of Mysore Wilson Garden 7 HDFC Bank Ltd Bannerghatta Road 8 HDFC Bank Ltd Richmond Road 9 Canara Bank S.R.Nagar 10 Vijaya Bank Indiranagar 11 State Bank of Hyderabad J.C.Road 12 Corporation Bank N.T.Road 13 Union Bank of India Avenue Road 14 Bank of India St. Marks Road All branches in Karnataka are having core banking facility Circular No.217 Page 15 of 15