CA Umesh Sharma

CA Umesh SharmaArjun (Fictional character): Krishna, Sales Tax Department has started new SAP system and has also been introducing various other changes. And now from 1st May 2016 onwards, changes are made in VAT registration form 101, so what are those changes? Due to this what care dealer should take?

Krishna (Fictional character): Arjuna, as nowadays the scorching heat in summer is increasing, the same way the changes in the VAT law system is increasing the work load on the dealer. Earlier, the Government has introduced amendments in the procedure in filing of VAT return and in that information of bill to bill has to be provided in the return. Now every new dealer will have to provide detailed information in VAT registration form. This implies that from beginning itself the VAT system has become difficult. If turnover of the dealer crosses Rs. 10 Lakhs then he is required to obtain the MVAT registration compulsorily.

MVAT Dealers

Arjun: Krishna, in this new form what are the major changes?

Krishna: Arjuna, in this new e-form 101, majorly the following more details are asked while registering on the site:

  1. The dealer who has been registered under the following laws, will have to provide the registration number. 1) Central Excise 2) Service tax 3) Import Export Code 4) Company Identification Number (CIN) 5) CST 6) PTRC 7) PTEC 8) State Excise Number.
  2. The dealer’s business place’s light bill details such as, the person on whose name the meter is, Customer Number, Account Number, Billing Unit, Taluka, Year, etc. will have to be given. If some difference exists between the address on light bill and the address mentioned in registration form, then correction would have to be made.
  3. Earlier, there were 10 heads of nature of business like manufacturer, retailer, etc. which has now been increased to 56. From these, the head that would be applicable is required to be selected.
  4. The dealer required to get temporary registration for example, for setting up fun fair stall, exhibition, etc. will have to give details of its duration.
  5. The location of the sales tax officer having jurisdiction over the place of business will have to be given.
  6. Earlier there were only 5 options for applying for registration out of which one is required to be selected. But now more 3 reasons have been added. They are 1) Merger/Amalgamation 2) Demerger 3) Full transfer of business due to death of the Proprietor.
  7. Earlier for voluntary registration details of other registered dealer (introducer) had to be provided, but now no such details has to be given. But the details of CA or STP will have to be given.
  8. If the dealer has its own website then the name of the website has to be provided.
  9. Earlier only one bank accounts details had to be provided. But now the dealer is under compulsion to provide details of all bank accounts. Many dealers escaped by providing detail of only one bank account, to restrict this provision has been introduced.
  10. In case of major purchase and sales details like schedule entry and HSN code had to be provided. But now in addition to above in schedule entry – entry number, sub entry number, HSN code heading, sub heading number and tariff item number has to be provided.
  11. Now purchase and sale details of other than the main goods has to be given.
  12. The details of all additional place of business with its electricity bill details has to be provided.
  13. For the purpose of additional place of business, what kind of activity is carried on there will also have to be provided.
  14. If the dealer has a business place in other state also then the TIN number of that state has to be given.
  15. The details of all partners, directors like date of birth, passport number, Director Identification Number, mobile number, aadhar card number, gender, and email id, etc. will have to be provided.

Any mistake is committed while filing the registration form, the same shall be corrected before 30 days. Through MVAT’s new computerised technology, new dealers will get all details on mobile and on e-mails.

Arjuna: Krishna, other than these things, what care dealer should take?

Krishna: Arjuna, from 1st April 2016, new dealer should be vigilant towards the following matters from the very start:

  1. In the first year of registration, returns will have to be filed monthly.
  2. The sale and purchase bills will have to be maintained from the very first day.
  3. The TIN number of the seller and the purchaser will have to be compulsorily mentioned on the bill.
  4. Input tax credit, CST forms, etc. related information can be verified on www.mahavat.gov.in .
  5. Billing software for small dealers is also available from the sales department.

Arjun: Krishna, what should we learn from this VAT’s new form?

Krishna: Arjuna, now government is taking details of each and everything from the dealer. Various dealers try to escape the tax laws, so the government has brought these changes so as to stop such practice of dealers. These new changes are brought up for good reasons. But it is expected that the innocent dealers do not face problems because of it. The government should utilise such details so as to catch the dealers doing tax evasion. As in schools, a new student is made to sit on the first bench so that he should behave in a disciplined way in future. The sales tax department has taken this step so that the new dealers should behave in disciplined way from 1st year.

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