VAT updates on notifications and circulars issued during the month of May 2010 in the States of –Delhi, Kerala, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh

Delhi

Amendment in the Return Form¹

Return Form DVAT – 16 has been amended to include the following annexure:

• Annexure 2A: Month-wise summary of purchase / inward branch transfer.
• Annexure 2B: Month-wise summary of sale / outward branch transfer.

Kerala

Extension in due date for submission of annual return²

The due date for submission of annual return for the year 2009-10 has been extended up to 30 June, 2010.

Maharashtra

Enhancement of threshold for audit³

With effect from financial year 2010-11, the threshold of gross turnover for getting the accounts audited has been enhanced from Rs. 40 lakhs to Rs. 60 lakhs. Further, dealers covered under the Package Scheme of Incentives are required to get their accounts audited irrespective of turnover limit.

Mandatory requirement to mention TIN of the purchasing dealer³

With effect from 1 May, 2010, selling dealers are mandatorily required to mention the TIN of the purchasing dealer on the tax invoice, failing which, the invoice shall not be treated as a tax invoice and the purchasing dealer shall not be entitled to claim set off in respect of such invoice.

Transaction-wise assessment³

With effect from 1 May, 2010, the sales tax authorities are empowered to undertake transaction-wise assessment under certain situations. Below is an indicative list of circumstances in respect of which the provision can be invoked:

• Claim of excess set-off
• Incorrect recording of transactions of sale or purchase
• Incorrect classification of transactions of sale or purchase
• Payment of tax at a lower rate
• Sales or transfers of goods outside the State, not supported by declarations forms

Tamilnadu

Introduction of provision for submission of revised return⁴

Dealers finding errors or omission in the returns submitted earlier are now entitled to submit a revised return within six months from the last day of the period to which return relates. However, dealers are not entitled to revise return in respect of errors or omission arising out of an inspection or audit or receipt of information or evidence by the assessing authorities.

Further, the revised return is required to be accompanied by proof of payment of tax and interest, in case the revision results in an increase in tax liability.

Intimation of status of statutory forms⁵

Dealers are required to submit by prescribed due date a periodical extract of the Central Sales Tax declaration forms issued by them to other States as well as such forms received by them from other States, in prescribed formats.

Uttar Pradesh

Benefits to Power Projects Industrial Units⁶

With effect from 13 May, 2010, Power Project Industrial Unit engaged in generation (New Capacity and Renovation and Modernization), transmission and distribution of power under the Uttar Pradesh Power Policy, 2003, and having aggregate capital investment of Rs. One Thousand crore or more up to March 31, 2009, are permitted to own the liability of payment of tax of other dealers on sale or purchase of goods, if such goods are ultimately sold to such Power Project Industrial Units. The permission is, however, subject to issuance of prescribed declaration form by the Power Project Industrial Unit to the dealer.

Source
1. Notification No: F. 3(27)/Fin.(T&E)/2009-10/ASF/99 dated 7 May, 2010

2. Circular No.10/2010 No.C1 18265/10/CT dated 29 May, 2010

3. Maharashtra Act No. XII of 2010 dated 29th April 2010 read with Circular No 17 T of 2010 dated 17 May, 2010

4. Notification No. SRO A-15(a)/2010. G.O. Ms. No. 62, Commercial Taxes and Registration (B1), dated 6 May, 2010

5. Notification No. V- G. O. Ms. No.70 dated: 25 May, 2010

6. Notification No. KA.NI.-2-485/XI-9(1)/08-U.P.Act-5-2008-Order-(60)-2010 dated 13 May , 2010