Transcript INDIRECT TAX COMPLIANCES

INDIRECT TAX COMPLIANCES
C A . A B H AY D E S A I
M A N A G I N G PA R T N E R , M / S YA G N E S H D E S A I & C O .
TYPES OF INDIRECT TAXES
 VAT/CST
 EXCISE
 SERVICE TAX
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COMPLIANCES
 PAYMENT OF TAX
 FILING OF RETURNS
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VAT/CST
 Interest/Penalties
 Returns
 Payment 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 returns
 Forms of returns
 Type of returns
 Date 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
Quarterly
201, 201A, 201B
Manual
Half-yearly
201C
Manual
Monthly
201, 201A, 201B
Manual
Quarterly
201C
Manual
Monthly
203, 204
Manual
Monthly
201, 201A, 201B
Manual
Quarterly
201C
Manual
3
4
5
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TP in PY or CY not
exceeding 60000
TP exceed 60000
Dealer having certificate of
entitlement/deferment
RETURNS
Sr. No.
6
Type of dealer
Frequency
Forms
Manual/E-fling
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.
7
Type of dealer
TT exceed fifty lacs
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
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(iii) Scrap of Iron & Steel
(iv) Tobacco and tobacco
products (excluding
Unmanufactured tobacco)
(v) Major Minerals as may
be specified by the
Commissioner
Frequency
Applies to all from (1 to 6
above)
Forms
Manual/E-fling
E-filing
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 / Quarter
 Revised 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
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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/PENALTY
 RETURNS
 PAYMENT 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 epayment
 For March: 31st March
 E-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 Annually by 30th November of
crore or more per annum
succeeding year
through PLA or Cenvat or both
together.
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RETURNS
Form of Return
ER-5 [Rule 9A(1) and 9A(2) of
Cenvat Credit Rules]
Description
Who is required to file
Time limit for filing return
Information relating to Principal Assessees paying duty of Rs. one Annually, by 30th April for the
Inputs
crore or more per annum (either current year .
through PLA or Cenvat or both
together) and manufacturing
goods under specified tariff
headings
ER-6 [Rule 9A(3) of Cenvat Credit Monthly return of receipt and
Assessees required to submit ER- 10th of following month
Rules]
consumption of each of Principal 5 return
Inputs
ER-7 [Rule 12(2A) of Central
Excise Rules]
Annual Installed Capacity
Statement
ER-8 [Sixth proviso to Rule 12(1) Quarterly return
of CE Rules]
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All assessees, except
Annually, by 30th April for the
manufacturers of biris and
previous year
matches without aid of power
and, reinforced cement concrete
pipes
Assessees paying 1%/2% excise Quarterly within 10 days after
duty and not manufacturing any close of quarter
other goods
PROCESS
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SERVICE TAX
 INTEREST/PENALTIES
 RETURNS/DUE DATE
 PAYMENT 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 80
 Fees 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-3
 To be filed on half-yearly basis
 Due date: 25th of month following the half-year
 All assesses to mandatorily file e-returns
 Revised 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 March
 E-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.
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Period of Delay
Interest
Upto 6 months
18%
Beyond 6 months upto 1 year
24%
Beyond 1 year
30%
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 – 390007
M) 7874668953
L) 0265-2339039
OFFICES : Vadodara, Ahmedabad & New-Delhi
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