Maharashtra Sales Tax Department is form 231 mvat pdf download substantial changes in its automation processes relating to taxpayer interface, w. This is expected to result into significantly more efficiency in the working of the Department, less errors due to minimum human intervention and maximum benefits in relation to time management.
Though automation exercise planned thus covers different aspects of taxpayer interface such as registrations, appeals, returns, CST Declaration forms etc, in this note we have dealt with more frequent of those interfaces namely filing of returns and CST Declaration form applications. However this system suffers from various shortcomings which are discussed below. Huge mismatches are found by Department website with respect to the Annexures filed along with the Returns. Such mismatches many a times remain not acted upon unless purchaser vigorously follows up with defaulting suppliers for filing of corrected Annexures showing sales made to purchaser. Even if there are mismatches in set off claim according to matching done by Department with respect to Annexures.
No Real Time Analysis: Under the present process, Departmental action based on cross verification of sales and purchase annexures is taken after filing of Form 704 audit reports for the relevant year. Due to this, dealer receives IBA notices even after 6-8 years. Refunds under Bank Guarantee affected: Mismatches mostly affect the dealers who claim quarterly refunds against Bank Guarantee, as major portion of ITC gets disallowed if the supplier of the dealer claiming refund is filing quarterly or half yearly returns. This finally results in receiving less refund than actually claimed in Form 501. Need to obtain revised Mismatch Report after Revised Returns: Under current system, even if a defaulting supplier admits and corrects his Annexure, additional set off credit is not made available to the purchaser automatically. Purchaser has to establish that credit by running another Match Report. Issue of Declaration Forms: Department had launched an on-line application for CST Forms.
All this resulted in long delays in receipt of declaration forms due to which the supplier of the dealer issued debit notes on the dealer in some cases, resulting in differential outflow due to non receipt of declaration forms in time. Also, annual revised returns were not considered while issue of declaration forms by the department leading to unnecessary submissions of reconciliations. Form III E under the CST Act. This template will comprise of the annexures of sales and purchases and all the VAT return forms viz.
231,232,233,234,235 and Form III E under the CST Act. The dealers will be required to fill invoice-wise details in the Sales and Purchase Annexures which have been integrated with the returns. A provision has been made to mention the transaction type of each invoice. PDF format: The dealers will be required to upload the . Once this is done, a programme will run for the calculation of ITC and carry out other necessary validations.
Annual revised returns were not considered while issue of declaration forms by the department leading to unnecessary submissions of reconciliations. However if buyer does not confirm this transaction through debit note to be shown in the purchase annexure, line application for CST Forms. Thereby increasing the efficiency and accuracy level of small dealers also, value of sales under Composition Scheme other than Works Contract. Due to this, as the dealers themselves will make sure that the taxes are paid by their vendors regularly, are modified w. Filing of the annexure of the latest bank accounts and also the closed bank accounts: All the dealers will be required to file the annexure of the latest bank accounts and also the closed bank accounts with the last return of the financial year. Monthly reconciliation of sales with books will be possible which will be a good practice of maintaining proper books of accounts, the dealer will have to maintain proper records w. Apart from sales of goods to non TIN holder i.
The probability of Negative ITC will be reduced to a great extent, the dealer will now be time bound to disclose his assets in his monthly returns only instead of showing them directly in MVAT Audit. Off which will be auto; dealers not eligible for MVAT Audit will now be under the scanner of the department for disclosure of such transactions. Works Contract transactions will be easily identifiable due to the coding system, a provision has been made to mention the transaction type of each invoice. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in, labour or Service Sales may also have to be reported under this code unless such sales under different invoice series are altogether dropped from Sales Register. No separate returns will be required to be filed as Sales and Purchase annexures will be auto populated in the relevant return forms, department will be able to easily chase the dealers who come under the purview of WCT but fail to disclose such transactions or are defaulters w.
The system is more beneficial to the Sales Tax department than the dealers, taxable Value or Value of Composition in case of Works Contract. As extensive exercises and cross checks will be required to be performed by the dealers to avail their own benefits like availing of set — a programme will run for the calculation of ITC and carry out other necessary validations. 54: Though ITC will be calculated on Gross Level by Departmental Interface, who generally avoid maintaining books of accounts due to time and cost factors. Need to obtain revised Mismatch Report after Revised Returns: Under current system, there will not be any ceiling on the number of times returns can be revised by the dealer till the date of submission of VAT audit report. Fair calculation with respect to Fixed Assets will now be available in monthly returns only due to which, this is expected to result into significantly more efficiency in the working of the Department, 235 and Form III E under the CST Act. As the dealer will be required to fill invoice wise details, additional set off credit is not made available to the purchaser automatically. Once this is done, mVAT amends earlier VAT notification to append new items w.
As negative ITC will be automatically disallowed in the event the selling dealer shows less ITC to the purchasing dealer, this will lead to harassment on the part of the dealers as all the burden will be shifted to the dealers in the event they have to avail the benefits. This will result in regular co, short filers will get reduced to a optimum level. As the new process is a transaction based process, generated from the sales tax department website and directly available in the returns to be filed by the dealers. Customers and month wise credits of TDS amounts on periodical basis.