Mvat – Mandatory filing of e-return, Acceptance of returns/challans not containing valid TINs

TRADE CIRCULAR

Trade Circular No. 18 T of 2009 Mumbai, Dated – 11.05.09

No. MVAT/e-Return/Returns Br./

Sub- 1) Mandatory filing of e-return

2) Acceptance of returns/challans not containing valid TINs.

Ref- 1) Notification, bearing No. VAT/AMD-1007/ IB/Adm-6. dt. 04.03.2009, issued by the Commissioner of Sales Tax, M.S

2) Trade Circular No. 7 T of 2009, dtd. 05.02.09.

Gentlemen/Sir/ Madam,

1. Mandatory filing of e-returns and its related payments:-

i. As per the notification referred at Sr. No. 1) above, any type of return of any dealer for any period under the Maharashtra Value Added Tax Act, 2002(“the M.V.A.T. Act”), if filed after 01.03.09 shall mandatorily be e-return. The dealers registered under the M.V.A.T. Act, are required to file the electronic returns in form 231, 232, 233, 234 or as the case may be form 235 with respect to their turnover of sales and purchases. Apart from this, if they are deducting tax at source, they are also then required to file return in form 405, disclosing therein the details related to tax deducted at source by them. Although the returns in form 231, 232, 233, 234, 235 are required to be compulsorily filed electronically, the returns in form 405 are to be filed only as per old procedure i.e. physical returns. For the dealers/persons who are not registered under M.V.A.T. Act, but are employers and deduct tax at source and are required to file the physical returns in form 405, a separate Trade Circular specifying the process is already issued under No. 42T of 2008, dtd.26.12.08.

ii. The dealers registered under the Central Sales Tax Act, 1956 (“the C.S.T. Act”) are also required to file their returns under the C.S.T. Act electronically. As per the procedure for filing of e-return, the dealer has to first make payment of taxes in the bank in the prescribed challan and is then required to upload the return. However, the Central Sales Tax Rules, 1957 do not provide for a separate challan for making the payment. The said rules provide for the return-cum-challan in Form No. III-E. Therefore, the dealers are advised to make their payment of taxes under C.S.T. Act in challan in Form No. III-E only without filling in the details of the turnover of sales, but just disclosing the details of tax, interest and penalty being paid. After making the payment they should upload the C.S.T. return electronically in Form No. III-E after filling therein the requisite details.

iii. After issuing the above notification, all agency banks have been advised to accept the payment only in challan in Form No. 210 & return-cum-challan in Form No. 405 for the M.V.A.T. Act and payment under the C.S.T. Act in challan in Form No. III-E. Therefore, all the dealers are requested to use these forms only for making the payments through banks. The dealers may also carry photocopies of documents specified in the Trade circular No. 7 T of 2009, dtd. 05.02.09, showing their correct Registration Certificate Number granted under the M.V.A.T. Act/the C.S.T. Act i.e. Tax Identification No.(“TIN”) and show such documents to the banks at the time of making the payments. This is to ensure that the banks enter the correct TIN of the dealer and the correct data comes to the Sales Tax Department.

2. Acceptance of challans/returns not containing valid TINs :–

i) As mentioned above, the banks have been advised to accept payments of taxes from the dealers under the M.V.A.T. Act and the C.S.T. Act only if they hold valid TINs. However, since the TINs are allotted w.e.f. 01.04.2006, following categories of dealers would not be able to pay their taxes in the authorized banks:-

a) The dealers who were holding Registration Certificate Numbers in the Financial Year 05-06 and have ceased to continue their business during the Financial Year 05-06 and hence have not applied for TINs. If such types of the dealers are required to pay their taxes for any period pertaining to the Financial Year 05-06,

b) The dealers who were registered under the earlier repealed acts and have not applied for TIN under the M.V.A.T. Act ie. they are not registered dealers under the M.V.A.T. Act for all periods starting from 01.01.06 onwards. If such type of the dealers are required to pay the taxes for the VAT period for which they remained unregistered.

c) The dealers who are doing their business without getting themselves registered under the M.V.A.T. Act, in spite of being liable to do so. If such type of the dealers are required to pay the taxes for the periods for which they remained unregistered.

ii) As the banks shall not be accepting returns or the corresponding tax payments from such dealers and as they shall not be able to get themselves registered for e-services, their physical returns shall be accepted by the Sales Tax Department.

iii) On administrative ground, it has now been decided that the aforesaid categories of dealers should approach the Sales Tax Department along with Demand Drafts (‘D.D.s‘) towards their tax liabilities, instead of paying the tax/ interest/ penalty etc. directly into the authorised banks. The procedure shall be as follows:-

a) In Mumbai, such dealers should approach the Establishment Officer of the Joint Commissioner of Returns Branch of Mumbai location along with the respective returns/challans and D.D.s of the total amount of tax, interest, penalty due as per the said returns/challans. His Office address is- 6th floor, G wing, Cabin No.1 (6G1), Vikrikar Bhavan, Mazgaon, Mumbai-10. He may be contacted on 022-23760677.

b) For rest of the Maharashtra locations, the Sales Tax Officer, Returns Branch of each location having jurisdiction over dealer, shall be the designated Officer. In case of any difficulty, the dealers may contact the concerned Joint Commissioner.

c) For Mumbai location, the dealers should draw D. D.s in favour of the Bank of Maharashtra A/c M.V.A.T. or as the case may be A/c C.S.T. payable at Mumbai. For rest of the Maharashtra , the dealers should draw D.D.s in favour of the S.B.I. A/c M.V.A.T. or as the case may be A/c C.S.T. payable at the respective locations.

d) The designated Officer shall give a duly signed and serially numbered receipt to the dealers of having received D. D.s. The designated Officer shall also give a duly signed acknowledgment to the dealers of having received the respective returns/challans.

e) The designated Officer shall deposit the D.D.s being received, in the Govt. treasuries. Once the tax payment is realized, he shall send the copies of the Challans to the concerned dealers.

3. It is hereby clarified that if the registered dealers holding TINs are required to pay their taxes under the M.V.A.T. Act or as the case may be under the C.S.T. Act for any periods ending on or before 31.03.06, into the Government Treasuries, they should quote their TINs on their challans.

4. It has also come to notice that some dealers liable to file electronic returns, after filing the electronic returns, are submitting hard copies of the returns to the banks. This is unwarranted and would not serve any purpose as such returns are no longer valid.

5. The dealers who were earlier registered under the repealed act viz. the Bombay Sales Tax Act ,1959, the Maharashtra Sales Tax on the Transfer of property in goods involved in the execution of Works Contracts (Re-enacted) Act, 1989, the Maharashtra Sales Tax on the Transfer of the Right to use any goods for any Purpose Act, 1985 and the Bombay Sales of Motor Spirit Taxation Act,1958, shall pay their taxes under the said acts, for the periods ending on 31.03.05, into the Government Treasuries by quoting their Registration Certificate Numbers granted under the respective acts, in the Challans prescribed under the respective acts. For example, the dealer registered under the the Bombay Sales Tax Act ,1959 shall make the payment of tax in challan in Form No. 25 by quoting the Registration Certificate Number granted to him under that act.

6. The dealers registered under the allied acts shall pay the taxes under the respective acts into the Government Treasuries in following Return cum challan/challan Forms by quoting the Registration Certificate Numbers granted to them under the respective acts. These shall continue to be accepted by the authorised banks in physical forms:-

7. The dealers paying the taxes in the banks under the acts being administered by the Sales Tax Department are advised to quote their telephone numbers and contact person’s names on the challans or as the case may be return-cum-challan, so that in case of any discrepancies being notified in respect of their TINs/ Registration Certificate Numbers, the banks would be able to contact them.

8. This circular cannot be made use of for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification. You are requested to bring the contents of this circular to the notice of all the members of your association.

Yours faithfully,

(SANJAY BHATIA)

Commissioner of Sales Tax,

Maharashtra State, Mumbai.