CA. ABHAY DESAIMANAGING PARTNER, M/S YAGNESH DESAI & CO.

INDIRECT TAX COMPLIANCES

CA. Abhay Desai

TYPES OF INDIRECT TAXES

VAT/CSTEXCISESERVICE TAX

CA. Abhay Desai

COMPLIANCES

PAYMENT OF TAXFILING OF RETURNS

CA. Abhay Desai

VAT/CST

Interest/PenaltiesReturnsPayment of tax

CA. Abhay Desai

INTEREST - PENALTIES

Interest on delayed payment levied @ 18% p.a. (Sec. 30(5))

Penalty for non submission of return in time - Penalty can be levied Rs.100/- per day for first 7 days thereafter Rs. 100 + Rs. 100 per day up to 30 days. Thereafter Rs. 3,000 per month of part of month with a maximum limit of Rs.10,000/- (Sec. 29(5)).

Lump sum Dealer : penalty can be levied up to ceiling of Rs.1000/- only.

Dealer submitting quarterly return: upto Rs.2000/- only.

CA. Abhay Desai

RETURNS

Frequency of returnsForms of returnsType of returnsDate for filing the returns

CA. Abhay Desai

RETURNS (Rule 19)

Sr. No. Type of dealer Frequency Forms Manual/E-fling

1 Lump sum dealer Quarterly 202, 202A, 202B, 202C Manual

2 Local Trader Quarterly 201, 201A, 201B Manual

    Half-yearly 201C Manual

3TP in PY or CY not exceeding 60000 Quarterly 201, 201A, 201B Manual

    Half-yearly 201C Manual

4 TP exceed 60000 Monthly 201, 201A, 201B Manual

    Quarterly 201C Manual

5Dealer having certificate of entitlement/deferment Monthly 203, 204 Manual

    Monthly 201, 201A, 201B Manual

    Quarterly 201C Manual

CA. Abhay Desai

RETURNS

Sr. No. Type of dealer Frequency Forms Manual/E-fling

6 Dealer who: Monthly 201, 201A, 201B Manual

  (i) Imports/Exports Quarterly 201C Manual

  (ii) Unit/Developer in SEZ      

  (iii) Claiming refund u/s 40      

  (iv) Remission u/s 41(1)      

7 Dealer of Schedule III goods Monthly 212, 213 Manual

8 NLD Monthly Depends on the business Manual

CA. Abhay Desai

RETURNS

Sr. No. Type of dealer Frequency Forms Manual/E-fling

7 TT exceed fifty lacsApplies to all from (1 to 6

above)   E-filing

  Makes zero rated sales      

  Makes imports/exports      

 Has certificate of entitlement      

 Developer/Co-developer of SEZ      

  Unit in SEZ      

  Registered under CST      

  Deals in:      

  (i) Timber      

  (ii) Ceramic Tiles      

  (iii) Scrap of Iron & Steel      

 

(iv) Tobacco and tobacco products (excluding Unmanufactured tobacco)      

 

(v) Major Minerals as may be specified by the Commissioner      

CA. Abhay Desai

DUE DATE OF FILING THE RETURNS

For E –Return If Tax Payable for the Month is 5,000 or less than

Rs.5,000 than within 60 days from the end of the respective Month.

If Tax Payable for the Month is 5,000 or more than Rs.5,000 than within 70 days from the end of the respective Month.

In case of Dealer who are liable for Quarterly E- Filing of Return than within 75 Days from the end of Quarter.

CA. Abhay Desai

DUE DATE OF FILING THE RETURNS

For Paper Return Within 30 Days from the end of the Month / QuarterRevised Return - If after furnishing a return if any

dealer discovers any error, omission , or incorrect statement therein, he may furnish a revised return before the expiry of One Month from the last date prescribed for Original Return.

CA. Abhay Desai

ANNUAL RETURN

Every Registered dealer shall furnish Annual Return by way of Self Assessment to the Commercial Tax Officer within whose jurisdiction his chief place of business is situated.

Registered dealer who is co operative society engaged in the manufacture of Sugar or Khandsari shall furnish annual return on or before 31st December after end of year to which return relates [ Form No. 205 & 205A ].

Dealer who are liable for VAT Audit shall furnish Annual return within 9 month from the end of the year to which annual Return relates.[ Form No. 205 & 205A].

Dealer to whom permission to pay Lump sum Tax has been granted U/s. 14, 14A ,14B, 14C and 14D within 3 Months [ Form No. 202 ].

Dealer who holds Incentive of Sales Tax Exemption in [ Form No.203 ] and Sales Tax deferment in [Form No. 204].

Any other dealer will have to file within 3 Month from the end of the Year to which return relates [ Form No. 205 & 205A.]

In case Turnover Exceed Rs. 1 Crore than E- Filing is also mandatory.

CA. Abhay Desai

PAYMENT OF TAX

22 days from end of the month/quarter

CA. Abhay Desai

PROCESS

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VERIFICATION OF ITC

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EXCISE

INTEREST/PENALTYRETURNSPAYMENT OF DUTY

CA. Abhay Desai

INTEREST/PENALTIES

Interest for delayed payment under section 11AA – 18%

Tax default beyond 30 days – penalty under rule 8 – daily clearance on payment of duty in cash, plus prohibition of using cenvat credit, till dues are paid up.

Penalty for non-filing of returns: Upto Rs. 10,000 (Rule 27)

No revision possible

CA. Abhay Desai

PAYMENT OF DUTY

SSI Units: 5th of succeeding quarter/6th in case of e-payment

Other: 5th of succeeding month/6th in case of e-payment

For March: 31st MarchE-payment mandatory if duty liability exceed Rs. 1 lac

in PY.

CA. Abhay Desai

RETURNS

Form of Return Description Who is required to file Time limit for filing return

ER-1 [Rule 12(1) of Central Excise Rules]

Monthly Return by large units Manufacturers not eligible for SSI concession

10th of following month

ER-2 [Rule 12(1) of Central Excise Rules]

Return by EOU EOU units 10th of following month

ER-3 [Proviso to Rule 12(1) of Central Excise Rules]

Quarterly Return by SSI Assessees availing SSI concession

10th of next month of the quarter

ER-4 [rule 12(2) of Central Excise Rules]

Annual Financial Information Statement

Assessees paying duty of Rs. one crore or more per annum through PLA or Cenvat or both together.

Annually by 30th November of succeeding year

CA. Abhay Desai

RETURNS

Form of Return Description Who is required to file Time limit for filing return

ER-5 [Rule 9A(1) and 9A(2) of Cenvat Credit Rules]

Information relating to Principal Inputs

Assessees paying duty of Rs. one crore or more per annum (either through PLA or Cenvat or both together) and manufacturing goods under specified tariff headings

Annually, by 30th April for the current year .

ER-6 [Rule 9A(3) of Cenvat Credit Rules]

Monthly return of receipt and consumption of each of Principal Inputs

Assessees required to submit ER-5 return

10th of following month

ER-7 [Rule 12(2A) of Central Excise Rules]

Annual Installed Capacity Statement

All assessees, except manufacturers of biris and matches without aid of power and, reinforced cement concrete pipes

Annually, by 30th April for the previous year

ER-8 [Sixth proviso to Rule 12(1) of CE Rules]

Quarterly return Assessees paying 1%/2% excise duty and not manufacturing any other goods

Quarterly within 10 days after close of quarter

CA. Abhay Desai

PROCESS

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SERVICE TAX

INTEREST/PENALTIESRETURNS/DUE DATEPAYMENT OF TAX

CA. Abhay Desai

INTEREST/PENALTIES

Interest: 18% p.a. (Reduced by 3% if value of taxable service less than Rs. 60 lakhs)

Penalty for late payment of tax: Rs. 100/day or 1% per month, whichever is higher (Maximum: 50% of tax)

Penalty can be waived u/s 80Fees for late filing: First 15 days: Rs. 500; 16-30 days:

Rs. 1000; 31 days or more: Rs. 1000 + 100/day (max. Rs. 20,000)

CA. Abhay Desai

RETURNS

Form ST-3To be filed on half-yearly basisDue date: 25th of month following the half-yearAll assesses to mandatorily file e-returnsRevised return: 90 days from original return

CA. Abhay Desai

PAYMENT OF TAX

Individuals/Partnership firms: 5th day of succeeding quarter/6th of paid electronically

Others: 5th day of succeeding month/6th of paid electronically

Due date for March: 31st MarchE-payment mandatory if total payment exceed Rs.

1,00,000 (including CENVAT)

CA. Abhay Desai

BUDGET CHANGES

W.e.f. 01.10.2014 every assessee has to make e-payment of excise duty. Assistant Commissioner / Deputy Commissioner of Central Excise shall have the power to allow the assessee to deposit tax by mode other than internet banking vide Notification No. 19/2014–Central Excise (N.T.) dt. July 11, 2014.

Rule 8(3A) has been substituted to provide that in case of default in payment of Excise Duty, the assessee must suo motu pay a penalty of 1% per month on the amount of Excise Duty unpaid for each month or part thereof. This change will take effect from the date of publication of the amending Rules in the Official Gazette.

CA. Abhay Desai

BUDGET CHANGES

Slab rate system for interest is proposed w.e.f. 01.10.2014.

Period of Delay Interest

Upto 6 months 18%

Beyond 6 months upto 1 year 24%

Beyond 1 year 30%

CA. Abhay Desai

REVERSE CHANGE MECHANISM

Currently under reverse charge mechanism, service tax has to be paid at the time of making the payment to service provider. It is proposed that w.e.f. 01.10.2014 service receiver will have to make payment either on the date of payment or the day after 3 months from the date of issue of invoice, whichever is earlier (First proviso to Rule 7 of Point of Taxation Rules).

CA. Abhay Desai

M/s Yagnesh desai & Co.819, Siddharth complex,Beside express hotel, Alkapuri,Vadodara – 390007M) 7874668953L) 0265-2339039

OFFICES : Vadodara, Ahmedabad & New-Delhi