SNSC 13/06/2014 DVAT LATEST AMENDMENTS Lunawat & Co. CA Rajesh Saluja
Latest Circulars • Circular Dt. 02/06/2014 – Summer break from 02/06/2014 to 30/06/2014. • During this period the AOs will not pass any Ex-parte orders for non-appearance of Counsels. • If a counsel upon an earlier fixation of case decides to attend, he may do so. • This exemption will not apply to: • Remand Assessment cases • Registration cases • Any other case which is getting time barred 1-1 CA Rajesh Saluja Lunawat & Co.
Latest Circulars • No.F(420)/VAT/Policy/2011/PF/02-08 Dt. 15/04/2014 • Although Notification No.F.3(27)Fin.(Rev-I)2013- 14/DSVI/292 was applicable w.e.f 05/03/2014, but department allowed the return of 4 th Qtr. To be filed in old format. • For Quarter ending June’14, new Format of Form I, is available, wherein you are not required to file R10 and R11 details. 1-2 CA Rajesh Saluja Lunawat & Co.
Latest Circulars • Now Reconciliation return in Form 9 is to be filed online, within six months from the end of a Financial Year. • A dealer can also file return for one or more quarters during the financial year, subject to the limit mentioned above • This return can be revised before the end of the financial year next to which it relates. • Commissioner has the power to further extend the revision period by 3 months. 1-3 CA Rajesh Saluja Lunawat & Co.
Interesting Case Law • M/s /s KONE Ele leva vato tors s Ind ndia ia Pvt vt. Ltd td. Vs. s. St Stat ate of Tam amil il Nad adu SC explains distinction between “Contract for sale of goods” and “Works contract” • Iss ssue: Whether supply, erection, installation and commissioning of lift at customer’s premises constitute “Contract for sale of goods” or “Works contract”? 1-4 CA Rajesh Saluja Lunawat & Co.
Interesting Case Law • Hon’ble Sales Tax Appellate Tribunal, Andhra Pradesh opined that the nature of work is a “Works contract”, for the erection and commissioning of lift cannot be treated as “Sale” • On a revision being filed, the Hon’ble High Court of Andhra Pradesh (“the Hon’ble HC”) affirmed the view of the Tribunal • the State of Andhra Pradesh filed a SLP with Hon’ble Supreme Court of India 1-5 CA Rajesh Saluja Lunawat & Co.
Interesting Case Law • By judgment dated February 17, 2005 in St Stat ate of A.P. . Vs. s. Kone ne Ele leva vato tors s (Ind ndia ia) Ltd td. [(2005 05) 3 SC SCC 389 9 = 2005 05-TIO IOL-30 30-SC SC-CT CT-LB LB] , the view of the High Court was overruled. • The three Judge Bench of the Hon’ble Supreme Court applied the “Dominant nature test” • Being aggrieved by the aforesaid order of Hon’ble Supreme Court, the Petitioner preferred a petition before the Hon’ble Supreme Court of India under Article 32 of the Constitution. 1-6 CA Rajesh Saluja Lunawat & Co.
Interesting Case Law It is held by the five Judge Constitution Bench of the Hon’ble Supreme Court of India that four concepts have emerged from various SC judgments, which are: 1. The Works contract is an indivisible contract but, by legal fiction, is divided into two parts, one for sale of goods, and the other for supply of labour and services; 2. The concept of “Dominant nature test” or for that matter, the “Degree of intention test” or “Overwhelming component test” for treating a contract as a Works contract is not applicable 1-7 CA Rajesh Saluja Lunawat & Co.
Interesting Case Law 3. The term “Works contract” as used in Clause (29A) of Article 366 of the Constitution takes in its sweep all genre of Works contract and is not to be narrowly construed to cover one species of contract to provide for labour and service alone; and 4. Once the characteristics of Works contract are met with in a contract entered into between the parties, any additional obligation incorporated in the contract would not change the nature of the contract. 1-8 CA Rajesh Saluja Lunawat & Co.
Form T-2 ? • A consignment agent is receiving goods from another state and selling them in Delhi. He only receives commission on these sales. Is he liable to file Form T-2 ? • An Exporter based in Delhi, purchased goods from Mumbai against ‘H’ Forms and without bringing it to Delhi it is transferred to Mumbai port. Is he required to file Form T-2 ? • A dealer purchased goods from Kerela against ‘C’ form and on the way more than one vehicle is used to bring the goods to Delhi. Which Truck no. would you fill in T- 2 ? 1-9 CA Rajesh Saluja Lunawat & Co.
Form T-2 ? • A registered dealer has sent goods to other state for Job work and he is receiving back the goods. Is he liable to file Form T-2 ? • A registered dealer is receiving back goods in the form of Sales Return. Is he required to file Form T-2 ? • A registered dealer making E-I and E-II Sales. Is he required to file Form T-2 ? • A dealer has sent details through SMS which subsequently change while the goods were being dispatched. What should the Delhi dealer do? • A user imports goods from outside Delhi for personal use. Is he required to file Form T-2 ? 1-10 CA Rajesh Saluja Lunawat & Co.
Form T-2 ? • An unregistered dealer who wants to make first inter- state purchase. Is he required to file Form T-2? 1-11 CA Rajesh Saluja Lunawat & Co.
1-12 Lunawat & Co. CA Rajesh Saluja CA Rajesh Saluja Lunawat & Co.
Banquet Halls • What hat are e the e con ondit itions ions when en ret eturn rn (B (BE- 2) nee 2) eed to o be e filed ed (i) a programme/ function to be organised in a banquet hall, Farm house, Marriage/Party hall, Hotel, Open ground etc.; and (ii) food and/or liquor items are to be supplied/ provided; and (iii) cost of booking exceeds rupees one lakh per function 1-13 CA Rajesh Saluja Lunawat & Co.
Banquet Halls • When en ret eturn rn to b o be e filed ed and d for or which ch per eriod iod • Return to be filed 3 days before the fortnight. For example return for the period 01.02.2014 to 15.02.2014 to be filed till 28.01.2014 and for the period 16.02.2014 to 28.02.2014 be filed till 12.02.2014 . 1-14 CA Rajesh Saluja Lunawat & Co.
Provisions under DVAT regarding Food & Beverages served in restaurant, banquet etc • As per Rule 4A of DVAT Rules in case of "residential hotels charging a composite sum for lodging and boarding with breakfast/lunch/dinner" if the dealer do not have sufficient documentary evidence to prove component of taxable turnover of sales in composite sum then taxable turnover will as follows: 1-15 CA Rajesh Saluja Lunawat & Co.
Provisions under DVAT regarding Food & Beverages served in restaurant, banquet etc • a) Where the composite charges include the 5% of composite charges charges for breakfast. • (b) Where the composite charges include the 10% of composite charges charges for lunch. • (c) Where the composite charges include the 15% of composite charges charges for dinner • (d) Where the composite charges include the 15% of composite charges charges for breakfast and lunch • (e) Where the composite charges include the 20% of composite charges charges for breakfast and dinner • (f) Where the composite charges include the 25% of composite charges charges for lunch and dinner • (g) Where the composite charges include the 30% of composite charges charges for breakfast, lunch and dinner 1-16 CA Rajesh Saluja Lunawat & Co.
Goods sent on Job work Do you need a form for sending/receiving goods on job work? Cas ase – I Goods sent to Haryana for job work and the Haryana party does some value addition in terms of materials. What forms should be used for sending the goods to Haryana and thereafter receiving them back? Cas ase – II II Goods sent to Haryana for job work and the Haryana party only does some value addition in terms of labour. What forms should be used for sending the goods to Haryana and thereafter receiving them back? 1-17 CA Rajesh Saluja Lunawat & Co.
Challenges of Online Filing • Onl nlin ine Fil ilin ing has as been n ma made ma mand ndat atory y for th the foll llow owin ing: g: 1. Surrender of RC - Central Form 10 not available online 2. Filing of amendments – Central Form 11, not available online 3. Registration Process 4. Form T-2 5. Form 9 - Central Form 9, not available online 6. Filing of objections (optional) 1-18 CA Rajesh Saluja Lunawat & Co.
Downloading Forms • Downl nloading oading Forms ms li link nked to to pend ndin ing g ta tax dema mands nds • Dema mand nds s on ac n account nt of : • Mismatch in claiming input credit • Non-filing of central forms 1-19 CA Rajesh Saluja Lunawat & Co.
Recommend
More recommend
