DVAT LATEST AMENDMENTS Lunawat & Co. CA Rajesh Saluja Latest - - PowerPoint PPT Presentation

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DVAT LATEST AMENDMENTS Lunawat & Co. CA Rajesh Saluja Latest - - PowerPoint PPT Presentation

Nov 24, 2023 148 likes •413 views

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

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CA Rajesh Saluja Lunawat & Co.

DVAT LATEST AMENDMENTS

SNSC 13/06/2014

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CA Rajesh Saluja Lunawat & Co.

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
  • rders 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

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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 4th Qtr. To be filed in

  • ld format.
  • For Quarter ending June’14, new Format of Form I, is

available, wherein you are not required to file R10 and R11 details.

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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.

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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

  • f 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”?

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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

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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

  • f 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.

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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

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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

  • f 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.

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CA Rajesh Saluja Lunawat & Co.

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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 ?

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CA Rajesh Saluja Lunawat & Co.

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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 ?
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CA Rajesh Saluja Lunawat & Co.

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Form T-2 ?

  • An unregistered dealer who wants to make first inter-

state purchase. Is he required to file Form T-2?

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CA Rajesh Saluja Lunawat & Co.

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CA Rajesh Saluja Lunawat & Co.

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CA Rajesh Saluja Lunawat & Co.

Banquet Halls

  • What

hat are e the e con

  • ndit

itions ions when en ret eturn rn (B (BE- 2) 2) nee eed to

  • 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

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CA Rajesh Saluja Lunawat & Co.

Banquet Halls

  • When

en ret eturn rn to b

  • be

e filed ed and d for

  • r 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.

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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:

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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

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CA Rajesh Saluja Lunawat & Co.

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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?

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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

  • win

ing: g:

  • 1. Surrender of RC - Central Form 10 not available online
  • 2. Filing of amendments – Central Form 11, not available
  • nline
  • 3. Registration Process
  • 4. Form T-2
  • 5. Form 9 - Central Form 9, not available online
  • 6. Filing of objections (optional)

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CA Rajesh Saluja Lunawat & Co.

Downloading Forms

  • Downl

nloading

  • ading 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

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Filing Objection U/s 74

  • Obj

bjection ction can an be be mad made ag agai ains nst: t:

  • An assessment made under this Act
  • Any other order or decision made under this Act
  • Imp

mportant rtant Poin ints ts:

  • Before filing an objection, the amount of Tax,

interest or penalty assessed that is not in dispute must be paid, otherwise the objection shall be deemed to have not been filed

  • Only one objection can be made against any

assessment, decision or order

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CA Rajesh Saluja Lunawat & Co.

Filing Objection U/s 74

  • Commissioner may direct the dealer to deposit a

part of the disputed demand – stay of demand.

  • The objection shall be made within 2 months of the

date of service of the assessment of the assessment, decision or order, as the case may be.

  • The objection shall be made in DVAT 38 (New

Form)

  • Condonation of delay can be made in DVAT 39

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CA Rajesh Saluja Lunawat & Co.

Filing Objection U/s 74

  • Three Sets including:
  • Photocopy of Forms
  • Copy of Order against which objection is being made
  • Payment proof of agreed tax
  • POA (one)
  • Grounds of Appeal
  • Facts of case
  • Covering letter
  • Fees of Rs. 50/- court fees stamp

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CA Rajesh Saluja Lunawat & Co.

Challenging Issues

  • Even if there is no mismatch showing in the dealer’s

login, still demands are being raised.

  • Refunds are being cancelled suo-moto by VATO,

without giving opportunity of being heard.

  • In some cases the refund cancellation orders are not

available with the department.

  • In case of on-line registration process, a provisional

registration no. is generated, which is subject to VATI visit and report, to be done within 15days of

  • application. Dependency on VATI and practically very

difficult to get this done in the given time.

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CA Rajesh Saluja Lunawat & Co.

  • Thank you!