VAT updates on notifications and circulars issued during the month of June 2010 in the States of –Chhattisgarh, Gujarat, Kerala, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal

Chhattisgarh

Compulsorily filing of E return¹

With effect from 1 July, 2010, a registered dealer whose gross annual turnover exceeds Rs 40 lakhs, is now required to file the return electronically.

Penalty for Non/late submission of return/annual return¹

With effect from 1 July, 2010, if a company registered under Companies Act, 1956 fails to file return/annual return on due date then the commissioner can impose penalty not exceeding Rs 5000/-.

Gujarat

Non/Partial Entitlement of Input tax credit²

With effect from 29 June, 2010, Input Tax Credit would not be available on Naphtha, Natural & Associated gas and
L.S.H.S used in manufacturing fertilizers .Further, with effect from 01 July, 2010 on all goods except Gold, Silver and other precious metals, the Input tax credit shall be reduced to the extent of 2% on taxable turnover of purchase when

• Goods are sold/resold in the course of interstate trade or commerce
• Goods are used as raw material in the manufacture of goods which are sold in the course of interstate trade or commerce.

Kerala

Extension in due date for submission of annual return³

The due date for submission of annual return for the year 2009-10 has been extended up to 31 July, 2010.

Extension of time limit under amnesty scheme⁴

Time limit under Amnesty Scheme has been extended from 30 June, 2010 to 30 September, 2010.

Maharashtra

Mandatory requirement of making e-payment by the dealer⁵

With effect from 1 June, 2010, every dealer liable to file monthly return shall make payment electronically of any amount due under MVAT Act, 2002.

Tamilnadu

Input Tax Credit eligibility⁶

With Effect from 09 June 2010, Any registered dealer, who has sold goods at a price lesser than the price of the goods purchased by him, is now required to reverse the amount of the input tax credit over and above the output tax paid on those goods.

Rajasthan

Change in classification of dealers required to file returns electronically⁷

From April 1, 2010 onwards following dealers would be required to file returns electronically

• Dealers registered under the Companies Act, 1956,
• Dealers having more than Rs.5 lakhs as net tax payable including the tax payable under Central sales tax during the previous year,
• Dealers having Gross Turnover more than Rs. 80 lakhs during the previous year including the turnover under Central sales tax.

Earlier, dealers having tax liability of more than 5 lakhs (excluding CST) were required to file return electronically.

Uttar Pradesh

Entry Tax on Natural Gas⁸

With effect from 29 June, 2010, entry tax @ 5% has been introduced on natural gas.

Rebate allowed on sale or purchase of Natural Gas⁹

With effect from 29 June, 2010, rebate to the extent of the amount of tax payable by a dealer on sale or purchase of natural gas under the Uttar Pradesh Value Added Tax Act, 2008 is allowed subject to the condition that the amount of rebate shall not exceed the amount of entry tax levied.

West Bengal

Dematerialized CST Forms¹⁰

With effect from 01 July, 2010, dematerialization of “C” and “F” Forms under the CST Act has been introduced. In the new scheme the respective forms will be available to the dealer after furnishing the VAT and CST Returns online. After submission of the return, the dealer may conveniently log on to the Directorate’s website www.wbcomtax.gov.in with his user account and password and click on the ap propr ate link for generation of the “C”/”F” forms. Once the dealer opts for generation of the forms, he will not be allowed to revise the returns filed for that quarter.

Source

1. Notification No. F-10/ 32 /2010/CT/V (51) dated 25 June, 2010
2. Notification No. (GHN-14) VAT-2010-S.11 (6) (2) dated 29 June, 2010
3. Circular No.14/2010 No. C1-18265/1 0/CT dated 30 June, 2010
4. Circular No.13/2010 No.C1-4 7960/09/CT dated 30 June, 2010
5. Notification No 1510/CR64 dated 26 May ,2010
6. Tamil Nadu Value Added Tax (Second Amendment)Act, 2010 dated 09 June, 2010
7. Notification No.F. 16(375)Tax/VAT/CCT/06/179 dated 29 June ,2010
8. Notification No KA.NI.-2-901/XI-9(81)/91-U.P.Act-30-2007-Order-(61)-2010 dated 28 June ,2010
9. Notification No KA.NI.-2-939/XI-9(81)/91-U.P.Act-30-07-Order-(62)-20102010 dated 28 June ,2010
10. Circular No. 7 /2010 dated 22 June, 2010