Trade Cir. No. 7T of 2012 Mumbai, Dt. 24/04/2012
Sub Clarification with regards to submission of annexures by the dealers who are not required to file Audit Report in Form 704.
Ref. 1. Notification No. VAT-1511/ CR-138 /Taxation- 1 dated 5th December 2011.
2. Notification No. VAT-AMD-2011/ IB/Adm-6, Mumbai dated 4th February 2012.
3. Trade Circular No. 3T of 2012 dated 27th February 2012.
This office is in receipt of various representations from the Trade and Associations. These representations with other queries also seek clarification with regards to the submission of Annexures by dealers covered under composition scheme in terms of Notification cited at Ref. 1 and 2 above. The issues have been examined.
2. The Trade Circular 3T of 2012 cited at Ref.-3 above was issued to explain the amendments made to rule 17 and rule 18 as also procedure to be followed for filling and uploading of Annexures J1 and J2 and also other requisite annexures. In order to address the issues raised by the Trade and Associations the instructions under aforesaid Trade Circular are modified as under:-
ISSUE:-(1):-Filing of returns and annexures by deemed dealers covered under rule 17(4)(a)(ii) [please see Explanation to section 2(8):
(a) The rule 17(4)(a)(ii) of MVAT Rules, 2005 deals with filing of returns by the deemed dealers whose tax liability for the previous year was Rs. one crore or less. These categories of dealers were required to file an annual return. However, due to amendment to aforesaid clause these dealers will now be required to file Six monthly return.
(b) Further, a proviso is added, as a result of which, the dealers covered under this sub-clause will be required to submit details of sales and purchases in annexure J1 and J2, respectively and details of TDS Certificate received and TDS certificate issued in annexure C and D, respectively.
ISSUE:-(2):-Filing of returns and annexures by deemed dealers NOT covered under rule 17(4)(a)(ii) [please see Explanation to section 2(8)]:- Deemed dealers whose tax liability during the previous year was more than Rs. one crore and who are not required to file Audit Report in Form-704, shall submit the Annexure-G, H, I, J1 and J2. The due date for submission of return for the month of March-2012 along with annexures shall be 30th June 2012. However, for tax payment there is no change in the due date i.e. it continues to be 21st April 2012.
ISSUE:-(3): Whether the dealers who have opted for composition scheme as envisaged under sub-sections (1), (2), (3), (3A) and (4) of section 42 (not required to file Audit Report in Form-704) will be required to submit annexures i.e. C, D. G, H, I, J1, and J2:
(a) Composition dealers not required to file Annexures.
(Retailers, Bakers, Second-hand Motor vehicles, Restaurants and Developers)
(i) Due to addition of second proviso to rule 17(4), the category of the dealers covered under composition, namely, Retailers, Bakers, Second-hand Motor vehicles, Restaurants and Developers (who have opted for 1% composition) and who are not liable to submit Audit Report in Form-704 shall NOT be required to submit any annexure.
(ii) For Retailers and other composition dealers who are liable to file six-monthly returns, the due date for filing returns and tax payments will remain 30th April 2012, for the period ending March-2012. For other composition dealers, who are liable to file Monthly or Quarterly returns, the due date for filing returns and tax payments thereof will remain unchanged i.e. 21st April 2012.
(b) Composition dealers required to file Annexures. (Works Contractors and Mandap Decorators).
(i) Dealers executing works contract and Mandap Decorators covered under composition scheme under section 42(3) and 42(4), respectively, who are not liable to submit Audit report in Form-704 shall, submit the details of sales and purchases in annexure J1 and J2, respectively and other details in annexure G, H, and I.
(ii) The works contractors and mandap decorators shall submit returns along with applicable annexures on or before 30th June 2012. Out of these, dealers who are liable to file Monthly or Quarterly returns, shall make tax payments on or before 21st April 2012 and those liable to file six-monthly returns, shall make tax payments on or before 30th April 2012.
Due Date for filing of returns along with annexures and Tax payments by the dealers who are not liable to submit Audit Report in Form-704:-