INDIRECT TAX COMPLIANCES
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Transcript of INDIRECT TAX COMPLIANCES
CA. ABHAY DESAIMANAGING PARTNER, M/S YAGNESH DESAI & CO.
INDIRECT TAX COMPLIANCES
CA. Abhay Desai
TYPES OF INDIRECT TAXES
VAT/CSTEXCISESERVICE TAX
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COMPLIANCES
PAYMENT OF TAXFILING OF RETURNS
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VAT/CST
Interest/PenaltiesReturnsPayment of tax
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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.
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RETURNS
Frequency of returnsForms of returnsType of returnsDate for filing the returns
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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
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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
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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
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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.
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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.
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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.
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PAYMENT OF TAX
22 days from end of the month/quarter
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PROCESS
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VERIFICATION OF ITC
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EXCISE
INTEREST/PENALTYRETURNSPAYMENT OF DUTY
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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
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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.
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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
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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
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PROCESS
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SERVICE TAX
INTEREST/PENALTIESRETURNS/DUE DATEPAYMENT OF TAX
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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)
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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
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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)
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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.
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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%
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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).
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M/s Yagnesh desai & Co.819, Siddharth complex,Beside express hotel, Alkapuri,Vadodara – 390007M) 7874668953L) 0265-2339039
OFFICES : Vadodara, Ahmedabad & New-Delhi