Training on new VAT e-services system.

Dear Member,

Invitation letter received from The Joint Commissioner (CT), Tirupur for training on new VAT e-services system.

All members are requested to attend the training compulsorily as it is our life issue and without the training it will be difficult to file monthly returns in the new system.

Secretary.
_________________________________________________________________________________

COMMERCIAL TAXES DEPARTMENT

From                                                                                                  To

Dr.K.C.S.Arunabharthi, B.V.Sc.,                                                        The Joint Commissioner (CS),
Deputy Commissioner (CT),                                                                Computer System,
Tiruppur.                                                                                              Greams Road, Chennai.

Ref.No. 9167/2014/Al dated 12.12.14

Sir,
                        Sub: Providing Training to dealers, auditors, STP's regarding E-services
                                provided by Commercial Taxes Department (Total Solution Project).

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        Commercial Taxes Department will conduct a training program for Dealers, Exporters, Sales Tax Practioners and Auditors regarding Following E-services.

          1) Online filling of application Form for Registration

          2) Online filling of returns

          3) E-Payment for Taxes

          4) Auto generation of statutory forms.

          5) Online application and generation of pass

          6) Offline entry at check post.

          7) SMS and e-mail notification and alerts.

          8) System generated 'Self assessment' order

          9) Electronic remittance facility for e-refund.

         10) System generated acknowledgement for refund.

         11) Online application for Form-S.

         12) Online submission of appeal.

         13) Online submission of grievances.

Date of Training: 18.12.2014 and 19.12.2014
                              Time: 10.30 AM to 01.00 PM and 02.00 PM to 05.00 PM

Venue of Training:  Tiruppur Export Association, (TEA)(Conference Hall)
                                 66, Appachi Nagar Main Road,
                                 Kongu Nagar, Tiruppur - 641 607.
                                                                                                                       Yours faithfully,

                                                                                                                 (K.C.S.Arunabharthi),
                                                                                                             Deputy Commissioner (CT),
                                                                                                                         Tiruppur.
Copy Submitted to
1) The Joint Commissioner (CT), Coimbatore
2) Tiruppur Export Association, Tiruppur.
3) The South India Hosiery Manufactures' Association(SIHMA), Tiruppur
4) Tirupur Branch of SIRC of ICAI, Tirupur

PRESENTATION ON TALLY ERP-9

Dear Member, 

Greetings from TPA, Tirupur and Prem Infotech Solutions India Pvt Ltd!

It gives us immense pleasure to invite you to an exclusive presentation -

"Using the Right Technology to Manage Your Business Challenges!"

Over the years while working with different businesses across the world we have identified certain business challenges which are common for all Sales Tax Consultants. We want to share our experience and acquired knowledge with you through this platform.

We request you to be a part of this and assure you that by the end of this seminar your take-away would be worth your time. You will be prepared to step up to the next level with the right solution!

Register now to confirm your Participation. 

The details of the seminar are:

Date : 22th November 2014, Saturday Time : 06:00 pm to 08.00 pm Venue : Vidya Mandir Matriculation School

Looking forward to meet you soon and forging a stronger future for the Prem Infotech family.

Secretary- TPA Tirupur

Tally Team- Prem Infotech Solutions India Pvt Ltd

IT TDS - AVOID DEFAULTS

We can easily avoid Defaults in TDS statements, by way of adherence to the following basic principles:

· Timely Payment of total taxes deducted/ collected
· Correct Reporting with regard to PANs, Tax Rate and Challans
· Complete Reporting for all Deductees
· Timely filing of TDS Statements

Following are some important facts to be adhered to, while submitting TDS statements, to avoid each type of Default:

· Late Payment Defaults:

o The taxes deducted must be deposited within the due dates, as prescribed by Rule 30 of the Income Tax Rules 1962.

o Please also refer to our communication on Important Guidelines for payment towards liability on account of Tax Deducted / Collected at Source

· Short Payment Defaults:

o All the taxes deducted must be deposited with challan 281 quoting correct TAN, Assessment Year, Minor Head etc.

o Challan details/BIN details quoted in the statement should be correct. Challans can be validated by using Challan Status Inquiry(CSI) file. Correct details can also be verified at TRACES in “Challan Status” menu under “Statement Status” after login.

o There should not be any difference in the amounts quoted in “Deducted” and “Deposited” columns of the deductee rows.

o Challans quoted in the statement must have balance available for consumption against specified deductee rows. Available balance can be verified at TRACES in “View Consumption Details” under “Statements/ Payments” menu after login.

o Government Deductors need to report Book entry flag as “Y” in challan details.

· Short Deduction Defaults:

o Taxes must be deducted at correct rates specified in the Act.

o Correct flags (A, B, C, T and Y) must be raised for no deduction/ lower deduction/ higher deduction, as appropriate.

o The PAN for deductees must be valid and correct. TAN-PAN Master can be downloaded from TRACES and be used to file statement to avoid quoting of incorrect and invalid PANs.

o Correct and valid 197 Certificates must be specified.

o For 24Q statements, correct flags should be raised for Woman/ Man/ Senior Citizen/ SuperSenior Citizen deductees, as may be appropriate.

o DTAA flag “B” must be raised under section 195 of the Act, at the time of filing 27Q  statements.

· Late Deduction Defaults:

o Taxes must be deducted at the time of Payment or Credit, whichever is earlier.

· Late Filing Defaults:

o Quarterly TDS/TCS statements must be filed within due dates of filing statements as prescribed by Rule 31A of the Income Tax Rules, 1962. The due date to file TDS statements for Q4, FY 2013-14 is 15th May, 2014.

Forwarded by S.Ramakrishnan

CIRCULAR No. 1/2014-2015                                                                 01.05.2014

MEETING

 Date                                     : 03.05.14 - Saturday

             Venue                                   : Vidya Mandir Matriculation School

             Time                                     :  6.00 PM

             Subject                                 : Recent GOs and Circulars – General Discussion            

.                         

                                                                                                                         Secretary.

Note:

Members may update their email-Id by sending test email-Id with address and phone no.

Hereafter you will receive meeting notices via email only.

Send your views and articles in advance to our association’s email

Members may forward other author’s articles to our blog

TURNOVER MORE THAN 2 CRORES? e-PAYMENT COMPULSORY

In G.O (Ms).30 dt 25.03.14, Rule 23 of the TNVAT Rules 2007 has been amended and the dealers , whose taxable turnover exceeds Rupees 2 Crores in the previous year, should compulsorly pay only by means of Electronic Payment (e-Payment).  Visit www.tnvat.gov.in to download the GO.

URGENT MEETING

CIRCULAR No. 7/2013-2014                                                                           19.12.2013

URGENT MEETING

   

          Date                                    : 19/12/2013 - Thursday

 

                     Venue                                  : Vidya Mandir Matriculation School

                     Time                                    :  5.30 PM to 6.30 PM

                     Subject                                : General discussion on Annexure V and Form-WW

             

       Meeting will be over at 6.30 pm.  So please be present @ 5.30 pm sharp.                          

                                                                                                                         Secretary.

Dear Members,

Greetings,

Members are informed that hereafter all communications will be sent only through email and there will be no postal communication. 

Hence members are requested to update their data name, address, phone no and email-Id by sending a mail to tpatirupur@gmail.com

TNVAT rl;lj;jpy; g[jpa khw;w';fs; (jkpHpy;)

1. With ‘C’ Form Sales-f;F ITC Reversal

            cs; khepyj;jpy; VAT tpjpf;fg;gl;l cs;sPl;Lg; bghUl;fis btspkhepyj;jpw;F mg;gona  my;yJ ntW bghUshf jahhpj;J with ‘C’ Form sales bra;jhy; 3% ITC Reverse bra;a ntz;Lk.;

Without ‘C’ Form sales-f;F KG ITC-a[k; Reverse bra;a ntz;Lk.;  ,Jtiu ,Ug;gJ bjhlh]fpwJ.  With ‘C’ Form sales-f;F 3% Reversal bra;a ntz;oaJ vg;go? xU cjhuzj;jpd;  \yk; ghh;g;nghk;.

Input goods purchase                                      Rs.60/-

mjw;fhd ITC 5%                                          Rs.3/-

With ‘C’ Form Sales                                       Rs.100.00

ITC Reverse bra;a ntz;oaJ                     Rs.1.80

        (3% on Rs.60/-)

fHpj;Jf; bfhs;sf; Toa ITC (3.00-1.08)     Rs.1.20

,e;j Rs.1.20I tHf;fk; nghy; cs; khepy my;yJ btspkhepy Tax due-f;F fHpj;Jf; bfhs;syhk.;

bfhs;Kjy; bra;ag;gl;l Input goods-f;F 14.5% tax fl;oapUe;jhy; 14.5% - 3% nghf kPjk; cs;s 11.5% fHpj;Jf; bfhs;syhk.;

gdpadhf ,Ue;jhy;

          nkny fz;l cjhuzj;jpy;/ gdpad; CST tpw;gidf;F fl;l ntz;oa 1% thpia/ fHpj;Jf; bfhs;sf; Toa Rs.1.20-apy; fHpj;jJ nghf kPjp 0.20 igrhit  local VAT-f;F fHpj;Jf; bfhs;syhk.;

2. Consignment Sales

            ,Jtiu  Consignment kw;Wk;  Stock Transfer bra;jhy; ITC-apy; 3% reverse bra;jJ nghf kPjp cs;sij kw;w due-f;F adjust bra;a Koe;jJ.  ,dpnky; ITC KGtJk;  reverse bra;a ntz;Lk;.  Adjustment fpilahJ.

3. Transit Pass

            rikay; vz;bza;fs; kw;Wk; ,Uk;g[ btspkhepyj;jpw;F tpw;gth]fs;/ Consignment or Branch Transfer bra;gth;fs;/ kw;Wk; gpw khepy';fspypUj;J jkpH; ehL tHpahf ntW khepy';fSf;F bfhz;L bry;gth;fs;  Transit Pass th';f ntz;Lk;;.

            1.11.2011  Kjy;  jkpH; ehl;oy;  ,Ue;J 6^th Schedule goods fis neuo tpw;gid bra;jhYk; Transit Pass  th';f ntz;Lk;;.  jw;nghJ 6^th Schedule-y; rikay; vz;bza;fs; kw;Wk; ,Uk;g[ nrh;f;fg;gl;Ls;sJ.

Important Amendments in TNVAT Act

1.     A proviso has been inserted to Sec.19(2) of the TNVAT Act, 2006 by Tamil Nadu Value Added Tax (5^th Amendment) Act, 2013 (Act No.28 of 2013).  The effect of the said proviso is that in respect of inter-state sales of goods that are purchased within the State from a registered dealer and sold in the course of inter-state trade or commerce falling u/s.8(1) of the CST Act, 1956), input tax credit shall be allowed in excess of 3% of tax.  In other words, if goods have been purchased locally within the State on payment of tax @5% and sold on inter-state sale basis and such sale is supported by “C” declaration forms, then Input Tax credit shall be allowed to the extent of 2% only.  Reversal of ITC has to be made on such sales to the extent of 3%. 

For example:

Purchase value of input material is                                 Rs.  60.00                 

     ITC at 5%                                                                      Rs.    3.00

            (Finished) CST Sale of output goods is                         Rs.100.00 

     ITC to be reversed                                                       Rs.    1.80

     (3% on Rs.60/-).

                        Eligible ITC that can be adjusted (Rs.3.00 – Rs.1.80) =Rs.   1.20

                            for other local sales or CST sales

i) If the output goods is hosiery then the CST rate of tax is 1%.  So on the sale value of Rs.100/-, tax to be collected is Re.1/-.  This tax amount of Re.1 can be adjusted from the eligible ITC of Rs.1.20 and the balance 0.20 Ps can be adjusted for other liabilities

ii) For other goods the rate of CST is @ 2% then, on CST sales value of Rs.100/-, Rs.2/- has to be collected and 0.80 Ps ( i.e Rs.2.00 – Rs.1.20 = Rs.0.80 Ps) has to be paid.

iii) If the goods purchased are used in manufacturing of both local and CST sales then, proportimate reversal has to be made.

2.  Sec.19(4) of the TNVAT Act, 2006 has been amended and ITC shall be allowed in excess of 5% in respect of stock transfer of goods.  In other words the rate of ITC to be reversed has been increased from 3% to 5%.

3.    The time limit for filing of Form WW has been extended from seven month to nine months from the end of the assessment year vide G.O.Ms. No.136 dt.31.10.2013.  In other words Form WW has to be filed on or before the 31^st of December.

4.    A new annexure, Annexure V has been added to the monthly Form I return to give details of the closing stock inventory if Input Tax Credit is carried forward to the next month.

5.     Rate of tax in respect of sale of alcoholic liquors has been enhanced.

6.    Sixth schedule to the TNVAT Act, 2006 has been amended and the following two entries have been added to the sixth schedule and hence transit pass is necessary for the following two goods also:

a.    Vegetable oils including refined vegetable oils

b.    Iron and steel as specified in clause (iv) of Sec.14 of the CST Act, 1956

ANNEXURE-V from 1.11.13

ANNEXURE-V

Dear Member,

The above Annexure-V is notified in GO.Ms. 137 dt.31.10.13.  In this Annexure-V details, regarding closing stock value of each commodity held at the end of the month and the ITC carried down from the previous month and carried forward for the month, are required to be furnished every month.  This GO is effective from 1.11.13.  Therefore, the above details are to be filed for the month of November-2013 on 20.12.13.  However it has to be furnished, if e-filing pages are modified in the website including Annexure-V even for the month of October-13. Until today 5.11.13, website is not modified.  

HAPPY NEWS AND HAPPY DIWALI!

Dear Members,

As expected the last date for filing Form WW Audit Report has been extended till 31.12.2013 vide GO.Ms.136 dated 31.12.2013.

Really it is a happy news to enjoy Diwali happpily.

HAPPY DIWALI!

-A.KRISHNAMOORTHY
Secretary

Same activity cannot be considered as manufacturing and service at a time - Sent by S.Ramakrishnan

We are sharing with you an important judgement of the Hon’ble CESTAT, New Delhi, in the case of Jubilant Industries Limited Versus CCE, Ghaziabad[2013 (9) TMI 358 - CESTAT NEW DELHI] on following issue:

Issue:

Whether the same activity can be considered as manufacturing and subjected to excise duty and at the same time considered to be aservice and subjected to service tax?

Facts & Background:

Jubilant Industries Limited (“the Appellant”) is successor in interest of a company by name Pace Marketing Specialties Ltd. (“PMSL”). The Appellant entered into an agreement with Jubilant Life Sciences Ltd. (“JLSL”) under which they agreed to manufacture excisable goods from raw materials to be supplied by JLSL. The terms of the agreement entered into between JLSL and the Appellant clearly show that the Appellant was processing goods for JLSL and the manufacturing activity was entirety carried out by the Appellant in the presence of the managerial staff of JLSL. All the materials required for carrying out the processing activity were supplied by JLSL. The products once processed were either supplied to JLSL’s depot or directly to the customers of JLSL on payment of excise duty.

As a consideration for carrying out the aforesaid activities, the Appellant recovered processing charges from JLSL which had a fixed and a variable component. Since their entire factory was to be used for manufacturing activity and JLSL was willing to clear the goods on payment of excise dutyfrom the Appellant’s factory, the Appellant consulted the Excise Department as to who should be registered for discharging excise duty liability. With the advice and consent of the Department officials, the Excise registration in the name of the Appellant was surrendered and new registrationtaken in the name of JLSL and they were paying excise duty on goods manufactured and cleared from the Appellant’s factory.

Revenue was of the view that the Appellant was providing “Business Support Services” as defined under 65(104c) of the Finance Act, 1994 (“the Finance Act”) made taxable under Section 65(105)(zzzq) of the Finance Act. Accordingly two Show Cause Notices (“SCN”) were issued – SCN dated October 28,-2010 related to the period April 2007 to March 2010 and SCN dated March 18, 2011 related to April 2010 to 14-11-2011 demanding service tax amounting to Rs. 1,31,93,416/- on account of first SCN and Rs. 29,02,873/- on account of second SCN, which were confirmed by the Department along with interest and penalties.

Being aggrieved by the aforesaid Order, the Appellant preferred an appeal before the Hon’ble CESTAT, New Delhi.

Held:

It was held by the Hon’ble CESTAT that the same activity cannot be considered as manufacturing and subjected to excise duty and at the same time considered to be a service and subjected to service tax. This principle is also recognized under “Business Auxiliary Services” defined under Section 65(19) and excluded from the scope of service tax levy and therefore, Process amounting to manufacture is kept specifically out of the scope of service tax. Thus, in the instant case manufacturing activities undertaken by the Appellant are not exigible to service tax even under “Business Support Service” instead chargeable to excise duty.

The Hon’ble CESTAT held that as per the contract, JLSL was supplying all the raw materialsrequired for manufacturing final products, supervising the manufacturing process and was taking steps to ensure the quality of the products. All activities like handling the raw materials, its accounting and processing were done by the Appellant. This means that both the parties were involved in the manufacturing activity. In such situation legal provisions exist in Central Excise laws for considering either of the two parties as manufacturer. In most cases, the person doing the job-work claims to be the manufacturer and pays excise duty as applicable in his hands. There are situations where the person supplying raw materials undertakes to pay excise duty and for that reason excise duty is not charged in the hands of the person doing the manufacturing activity videNotification 214/86-C.E. (“the Notification”) is applicable in such cases.

However, the Notification only provides a mechanism by which the duty liability is fixed on the person supplying raw material (JLSL in this case) and enables the clearance of the goods from the factory of actual manufacturer subject to undertaking for payment of duty by the other party or its further use in the manufacture of excisable goods. In a situation, where the other party (JLSL in this case) was willing to pay excise duty at the time of clearance of the goods from the factory ofmanufacture, there was no need to adopt the procedure laid down in the Notification. Therefore, the fact that JLSL was paying excise duty does not lead to a legal position that the Appellant was not doing manufacturing activity.

Furthermore, the Hon’ble CESTAT held that the Appellant was charging two components towards job-charges separated as fixed cost and variable cost cannot alter this situation so long as goods were manufactured. However, in a situation where goods were not manufactured but charges were collected under the fixed component, it could have been considered as a service.

Therefore, on the basis of the above judgment, the Hon’ble CESTAT allowed the appeal in favour of the Appellant.

Important to Note:

Post Negative list regime effective from  July 1, 2012, “any process amounting to manufacture or production of goods” is also falling under one of the Negative list of Services under Section 66D(f) of the Finance Act.

Further, “process amounting to manufacture or production of goods” means a process on which duties of excise are leviable under Section 3 of the Central Excise Act, 1944 or the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 or any process amounting to manufacture of alcoholic liquors for human consumption, opium, Indian hemp and other narcotic drugs and narcotics on which duties of excise are leviable under any State Act for the time being in force.

————————-
Bimal Jain
FCA, FCS, LLB, B.Com (Hons)
Mobile: +91 9810604563

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