Office of the
Commissioner of Sales Tax,
Maharashtra State,
8th Floor, Vikrikar Bhavan
Mumbai – 400 010.
Tel.No.2376 0975/0976/0963/0986
E-mail-
SERVICE CELL
No:-Service Cell / CST / HQ-IV/Adm-15/ Meeting minutes/181109/B- 360 Mumbai, Date 30/12/2009
MINUTES OF THE SERVICE CELL MEETING HELD ON
18H NOVEMBER 2009
1. The meeting of Service Cell was held on 18/11/2009 at Conference Hall, 7th Floor, Vikrikar Bhavan, Mazgaon Mumbai 400 010. Shri.Pramod Nalawade, Additional Commissioner of Sales Tax, Maharashtra State, presided over the meeting. Trade representatives, Tax consultants, dealers and concerned officials were present at the meeting.
2. Additional Commissioner and the Chairman welcomed the delegates and informed that the top most priority of the Department is implementation of E- services. He complimented trade & industries and practitioner fraternity for successful and effective implementation of e-return drive in the State. The voluntary contribution of various trade associations and practitioners in various working groups related to e-services for troubleshooting is highly appreciated by the Chairman. The members expressed gratitude’s in this regard and assured full cooperation. Mr. Nitin Shah STP Pune expressed that the representations made shall be construed positively as mere suggestions and not grievances against the organisation or individual per se.
3. The minutes of earlier meeting held on 18th December 2008 were read and confirmed.
4. The Action Taken Report on Decisions of Previous Meeting is as follows :-
ACTION TAKEN REPORT
Sr. No. / Issues / Organi-sation / Status1 / Issue of E-filing of Returns along with annexures / BCCI / The e-return is successfully implemented. The issue of introduction of e-annexures will be resolved shortly.
2 / Issue of pending Assessments under BST Act: / BCCI / The priority assessments are targeted to be completed by March 2010. The necessary redeploying of manpower is already done.
3 / Clarification on Rate of CST on Interstate sales of Motor Vehicles from 1-4-2005 to 16-10-2005: / BCCI / The matter will be looked into.
4 / Clarification in respect of Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002. / BCCI / The issue is under examination.
5 / Issue of I’ card to STPs / Mr.Bharat Shah / The issue is under consideration.
6 / Request for Central Repository function at Bandra Location / Mr.Bharat Shah / Since 2nd February 2009 all the declaration are issued online. Hence issue become redundant
7 / Automated acknowledgement for e-return / Mr.P.V. Surte, STPAM / The issue is resolved. Acknowledgement can be saved and can be viewed in the DI.
8 / Amendment to Section 8 of CST Act – / Mr.Deepak Bapat, President, STPAM / The issue is pending with GOI.
9 / Deduction of Service Tax from WCT turnover in case of composite contracts. / Mr. Deepak Bapat, President, STPAM / No such deduction is admissible as per the provisions of Law.
10 / Set-off u/r.53 on Fuel, Plant & Machinery and other capital assets for electrical under takings. / BCCI / The issue is under consideration.
11 / (a) It may be clarified that the said Amendment to Rule 53(6) (b) is applicable to the new units and existing units, both retrospectively with effect from 8th September, 2006. It may also be clarified how the period of three years from 8th September, 2006 is to be computed.
(b) The members of Bombay Chamber suggest that the time limit of 3 years limit should be waived so that all manufacturers / job workers are able to claim setoff without any period limit considering that such units are facing serious problems due to slow down in the economy / BCCI / The proviso to clause (b) is amended and the three years period is to be calculated from the date of effect of registration. A Trade Circular is being issued on the subject.
12 / (a) The above rule should be amended immediately w.e.f. 01/04/05 and not from 08/09/06 (i.e. with retrospective effect). There is no clarity whether it is applicable for new industries being set up after 23/10/08 or after 08/09/06.
(b) It should be amended for all industries whether old or new and not for next 3 years but forever. Guidelines should be given whether it is applicable for all industries and if it is restricted to 3 years then how this period will be calculated. / CII, Mumbai. / This rule will be applicable to the new units established on or after 8th Sept. 2006. The issue will be examined further.
13 / Since the manufacturing units having their own sale and also doing job work consume Fuel, stores and spare-parts and other consumables for both i.e. own sale and job work, the dealer should be entitled to claim set-off on all these items as Vat is paid by dealer on their whole sale and by Principals on such job work & therefore there is no loss of revenue to government. Hence if set-off is allowed on corresponding goods only, there will be double taxation.
Since manufacturing units having their own sale and doing job work in Mumbai and in Maharashtra are facing financial crisis due to recession/slow down etc., they may get some relief if set off on fuel, spare parts and consumables is allowed to them same as being allowed to new units for 3 years (vide notification dt.23/12/2008). / CII, Mumbai / The issue is being examined
Reduction in set-off was a conscious decision of the Govt. It was decided to allow set-off to units in erction stage, which normally have no sales during this period. In the light of representation now made the issue will be examined further.
14 / Stop harassment to dealers / tax professionals by taking simple steps. Change the colour of the receipt to black to get better printable / copiable print out. Make provision for designation of the officer of return branch / B.A. department to verify their track. / Bharat Shah, STP / Acknowledgement for return can be downloaded in PDF format from Dealer Information System ( DIS) through Mahavikas.
15 / Non mention of details of overseas supplier on Purchase Order / S.A. Anajwala, STP / Issued internal circular no.18A of 2009 dt.18/08/2009.
16 / Granting set off on packing goods for traders. The request is made to grant full set off on packing goods for traders who exports goods out of India. / Mr.Janak Waghani, CA. / The Rule 53(2) (b) is amended with effect from 1.07.2009.
17 / Set-off on foundation of Wind Mill / Mr.Janak Waghani, CA. / The issue is being examined.
5. The table given below shows the gist of discussion held in the meeting.
Sr. No. / Subject / Issues Raised / Comments/ RemarksA) Bombay Chambers of Commerce & Industry
i) / Early completion of old BST / CST Assessments: / Issues:
The Companies are facing problems of maintenance of old record pertaining to the pending Assessments under the BST Act & the CST Act. Many other issues are also involved due to such non completion of old Assessments.
Suggestions:
(a) The Commissioner should direct the Assessing Officers to complete the pending Assessments immediately within a specific time frame.
(b) The commissioner should issue a Trade Circular asking the Companies / dealers who are ready with the old Assessments. The department can complete such Assessments on priority basis. / The priority assessments are targeted to complete by end of March 2010 on priority basis. The suitable redeploying of necessary manpower is already done.
B) / M/s.The Sales Tax Practitioners’ Association of Maharashtra.
Mr. Mayur Parekh President & Mr. Dilip Parekh General Secretary
ii) / Points regarding Form 704 / Activity Code – Activity Code does not match with the classes of goods in which dealer deals in – How to bifurcate the Turn over of sales qua rate of tax?
Annexure E- The amount of set-off does not get transferred automatically into schedule of form no.704.
Acknowledgement – Acknowledgement of e-704 audit report does not appear on website.
Annexure – J – Since it is cumbersome as well as time consuming we request you to remove annexure-J from form 704.
New Template – Since E-704 is not fully compatible in all respect for filling up as well as uploading it should be first correct it, test it and than after should be put on MAHAVAT website so that dealers will be saved from hardship which they are facing in filling up and uploading various versions of e-704. / For now tax rate field is blocked. Broader classification of goods is provided in Activity Codes. Help desk for Activity code is being provided.
This is a conscious decision. The set off calculated in schedule automatically appears in Part I of Form 704. Validation is provided in Part I that the set off appearing in Part I is not in excess of set off as per Annexure-E
The utility will be re-modified accordingly.
This is intended for the purpose of verification of ITC Claim.
The revised templates are functioning and uploading of Form F- 704 has already started however further modifications are being carried out to make it more user friendly. The working group is already working on the same.
iii) / Filing of audit report prior to the period 2008-09 / We request your honor to issue the necessary direction in respect of filing of audit report for the period prior to 2008-09. / The dealer can file Form F-704 electronically in new latest e-version or manually in old version relevant at the respective Financial Year for the periods prior to 2008-09. The instructions will be issued in this regard.
iv) / No Business Audit Division at Sales Tax Office at Nallasopara / Consequently, the dealers situated between Mira Road to Virar have to visit at Sales Tax Office of Palghar. We request you to have Business Audit wing at Sales Tax Office of Nalasopara. / The issue will be looked into.
v) / Quick disposal of refund claim – less than Rs. 5 lakh. / As per Trade Circular the applications for refund claim for Rs. 5 lakhs or less shall be disposed off within six months but the Sales Tax Department takes time more than six months for disposal of such refund applications. Hence request you to dispose off such refund claims at the shortest possible time. / The issue is under consideration for introduction of modified VRS scheme with relaxation of existing conditions. The concerned JC will be authorized accordingly.
vi) / Extension of date for issuance of statutory declaration under CST Act prior to 01/04/08. / Many dealers have requested us to extend the date which was expired on 31/10/09 for issuance of declarations under the CST Act prior to 01/04/2008.
/ The time-limit is extended twice previously on request. Hence request can not be considered further. However individual cases referred to the department will be resolved on merits.
vii) / Penalty u/s. 61(2) – late filing of Audit Report / We request you to issue the scheme like Amnesty Scheme for late filers and non filers of audit report for all the periods up to and including the period 2007-08. This shall be treated as last opportunity for such dealers.
It has been requested by representatives that auditors had finalized audit reports for 3 financial years in a single year and as a special case the penalty proceedings can be compounded to prefixed token amount. / In case of delay of one month no penalty is levied. However for delay beyond one month the penalty will be levied after granting opportunity of being heard to the dealer.
In this case the issue will be examined.
viii) / ‘C’ form pertaining to the left out purchase bill. / When a dealer approaches to the sales tax department for obtaining C form pertaining to the left out purchase bill and if the said dealer has already obtained C form previously for the same supplier & period then the sales tax department cancels the previous C form obtained and subsequently issues new C form including left out purchase bill. We request you not to cancel the ‘C form previously obtained but issue fresh C form for left out purchase bill only. / The request will be examined with context to TINXYS.
ix) / E-Registration Frm 101. / (a) Various types of complaints have been received from the dealers about e-registration form 101. We request you to have twenty five help desks at Registration Branch, Mazgaon or alternatively, form 101 please be accepted manually by the department until e-registration system is settled.
(b) Suppose at the time of online application for e-registration if after filling up the application and after uploading the same, if dealer has forgotten to save that file than how a dealer can take print out of the application which he has to submit to the assessing officer. / The centralized help desk at Mazgaon will serve the purpose. Besides, all the mofussil officials have been instructed to assist in case of problems therein.
The facility of reprint will be provided. Mr. S.A. Anajwalla STP to refer two sample cases for trouble shooting in this regard.
C) / All India Consumer Forum, Sangali Mr. Kishor Lulla
x) / Non Levy of Penalty at 100% u/s.29(3) of the MVAT Act, 2002. / Your honour has issued circular in which in para no.4 sub-clause (viii), it is stated that “in case a dealer who files revised return and pays 25% interest u/s 30(4), then penalty u/s 29(3) shall not be levied”. In spite of these clear instructions, it is observed that in many cases the dealers are threatened for levy of penalty at 100% u/s 29(3) on the ground that the dealer has not knowingly paid the tax while filing the returns.
We are therefore requesting your honour to clarify us whether the business audit authorities can levy such penalty on the ground that the dealer has not knowingly paid the tax while filing the returns.