Office of the Commissioner of
Sales Tax,
8th floor, Vikrikar Bhavan,
Mazgaon, Mumbai — 400 010.
TRADE CIRCULAR
To,
………………………….
………………………….
No.: JC/EIU/CDA1213/2015-16 Mumbai.
Dt.- 14/08/2015.
Trade Circular No.12T of 2015
Subject: The Computerized Desk Audit (CDA) for the period 2012-13.
Reference: Trade Circular No.
14T of 2014 dated 06-08-2014.
The department
has now generated Computerized Desk
Audit (CDA) reports for the period 2012-2013 after analyzing electronic
data pertaining to e-Returns, audit reports in form e-704 and annexures thereof
uploaded by all the dealers. The CDA for this period has resulted into findings
of likely tax liability in respect of some of the dealers. The CDA findings for
this period are available through dealers’ access on the web site www.mahavat.gov.in
and also dealers can submit compliance electronically. The dealer will not be
required to visit the sales tax office for audit period if he agrees with the
findings of the CDA and pays tax as per CDA along with applicable interests.
2. Selection of cases for the regular
assessment for the period 2012-2013:
The department
has selected the cases for comprehensive assessment for the year 2012-2013. The
facility of CDA will not be available to these Assessees. Assessees, in these
cases, will be required to attend before the assessing authority for the
complete verification of their books of accounts. The list of assesses selected
for assessment is displayed on the web site www.mahavat.gov.in .
3. The CDA parameters and the cases
selected for the CDA for the period 2012-2013:
The CDA findings
have been generated on 11 parameters as shown in the table below.
Sr. No. Audit
Parameter Description
1 Tax Credit (set-off)
from non-genuine suppliers
2 Tax
Credit (set-off) from TINS not existing in MAHAVIKAS registration database
3 Tax
Credit (set-off) from Registration Cancelled Suppliers
4 Tax
Credit (set-off) from suppliers who are return non-filers for the complete year
5 Tax credits (set-off) from suppliers who are
composition dealers filing only Form 232
6 Tax
credits (set-off) from suppliers not showing taxable sales in returns
7 Excess
tax credits (set-off) in annexure J2 of buyer where supplier has filed
complete
annexure 11 but has shown no sale to the buyer
8 Excess tax credits
(set-off) in annexure 12 of buyer where supplier has filed
complete annexure A.
but has shown less sales to the buyer
9 Asked
to pay amount in Part I of Form e-704 under MVAT Act
10 Asked
to pay amount in Part I of Form e-704 under CST Act
11 Excess tax credit
(set-off) in annexure J2 claimed by buyer where Gross purchase
amount matches
with Gross Sales amount shown by seller in annexure J1
The dealers, in
whose cases, discrepancies have been found in any or all of the parameters as
above, and whose names appear in CDA
Dealer List -2012-2013 on the web site www.mahavat.in may opt for
compliance to the CDA through the online system.
4. The CDA compliance system available on
the web site:
The Computerized
Desk Audit compliance system consists of;
a) The communication of the CDA findings in Form 604 A followed by the Annexure
wherein the dealer can see the details
of the transactions pertaining to the CDA parameters.
b) The CDA Web Compliance Form in which the
dealer can accept or reject the parameter-wise tax liability
c) The Interest Utility for calculation of interest
under section 30(2)
d) The dealer can fill Payment details & Return
details and submit online compliance.
5. Communication of findings of CDA through
a notice in form 604 A i.e. an intimation u/s, 63(7) of the MVAT Act:
The
communication of the CDA findings shall be in notice in form 604 A, It shall be available to the
concerned dealer on the web site
www.mahavat.gov.in. The dealer will be required to login with his user id
and password.
After log in,
the dealer will open the link “Computerized Desk Audit” and select
the relevant financial year to download CDA findings. After clicking the link
for download, CDA findings in form 604 A
will be downloaded in zipped file and can be saved by the dealer as HTML file.
At the same time an acknowledgment will be generated for the department
regarding successful delivery of CDA
findings in form 604 A. The said acknowledgment will also be available to
the dealer on the web-site.
The CDA findings in form 604 A (HTML file)
will be available to the dealers from 20th
August 2015 through their log in IDs on MAHAVAT website as stated above.
The dealers will also receive the CDA
findings in form 604 A (zipped HTML file) through e-mails on the e-mail IDs
which are available with the department. An intimation about selection of case
under CDA category will also be intimated to the dealer through customized SMS.
After
compulsorily downloading CDA findings in
form 604 A, the link for CDA compliance web-form will be available to the
dealer for compliance. It may be noted that unless the CDA findings in form 604 A is downloaded, the dealer will not be
able to access the CDA Compliance Form.
6. Compliance to the CDA and Payment of due
Tax and Interest
The compliance
to the CDA is required to be made directly on the website. For this purpose,
the dealer would be required to access the “CDA
Compliance Form” for the relevant year in the link “Computerized
Desk Audit” on the web site
www.mahavat.gov.in through his login ld and the password. This report shows
the audit parameters and the related tax liability in a tabular form. The
facility of acceptance or denial of any of the audit parameters and also the
facility for entering interest payments u/s 30(2) and 30(4) have also been made
available to the dealer through a button on the same web page. Also a button is
provided for accessing Interest calculation utility.
a. The dealer shall go through the
information provided in CDA so as to arrive at a decision as to whether the
additional tax liability for each audit parameter is acceptable to him or not.
For this purpose he may go through the details as mentioned in CDA findings in form 604 A (html file)
where the tax liability against each audit parameter in CDA is supported by
party-wise sale / purchase transactions.
b. The dealer may accept the audit
parameter and the tax liability thereof in terms of any or all of the audit
parameters. For his acceptance, he will select ‘YES’ from the drop down menu against the relevant parameter. The
dealer may not accept the audit parameter and the tax liability thereof. For
his non-acceptance he will select ‘NO’
from the drop down menu against the relevant parameter. Partial acceptance of tax liability against any parameter is not
provided for. However, the dealer may accept liability on account of some
parameters and may deny the tax liability on some other parameters. The dealer
should select ‘NO’ if the parameter
risk is zero.
c. in case of accepted tax liability
the dealer would calculate the interest payable under section 30(2) using the
utility provided under the button “Calculate Interest”. The dealer
has to distribute the admitted tax liability across all return periods
applicable as per the periodicity if the payments are made before 1st
April 2015 e.g. asked to pay category payment. If the payments are made on or
after 1st April 2015, then the dealer has to calculate interest applicable
for Annual revised return as per the amendment in section 30(2) applicable for
such periods. Depending upon the applicable due dates, the system will
calculate interest for relevant return periods. The dealer is required to
calculate interest on the total tax admitted in Compliance web-form excluding
any interest amount if included in asked to pay parameters. The dealer would
also calculate the interest payable under section 30(4), as may be applicable,
and first pay the net tax and the interest so calculated. Necessary validations
have been provided so that the CDA Compliance Report gets accepted only if the
tax liability and the applicable interests are fully paid in relation to the
accepted parameters.
d. If the dealer had already made tax
payments for the audit parameter now communicated to him, then such chalan
details can be entered in the Chalan form available by clicking “Payment
button” provided in the CDA Compliance web-form. The details about balance
additional tax, if any, paid after receipt of CDA report can be entered in
another chalan added by clicking the “Payment button”. The facility
of entering multiple chalan details under MVAT and CST Acts is provided the
“Payment button”.
e. As per the Explanation to section
30(4), if the additional tax liability is less than 10 percent of ‘Taxes paid’ as per the admitted tax liability in
returns / revised returns (after adjusting tax credits) filed before receipt of
CDA intimation, then interest u/s 30(4)
is not payable. Similarly, if the additional liability is on account of CST
declarations not received by the dealer, then also interest under section 30(4)
is not payable. If a dealer admits some or all of the audit parameters and the
admitted tax liability is below 10% of the taxes paid along with returns filed
before delivery of CDA intimation, then he will not be required to pay interest
under section 30(4).
It may be noted that without the payment of
applicable interests, the CDA Compliance will not be accepted on the web-site.
It may also be noted that the physical submission of the CDA Compliance will
not be accepted.
f. Once the tax and interests are paid
the dealer would then file the annual
revised return as contemplated u/s
20(4) (c) showing the revised details appropriately.
g. The dealer would then fill in the
details of tax and interest payment in the CDA compliance report and confirm
the same by clicking the “Submit
Compliance” button on the web page of the “CDA Compliance
Report”. The compliance to the CDA is to be made on or before 18.09.2015. It is therefore in the
interest of the dealer to download the “CDA Report” and the
intimation in form 604 A as soon as possible. The online submission of the CDA
Compliance Report will be treated as full compliance in relation to admitted
audit parameters’ additional tax liability. Full compliance related to a parameter will result in closure of the
parameter.
h. The dealer is at liberty to disagree
with the CDA, However, all the cases where parameters have not been accepted
will be taken up for scrutiny, by way of Issue Based Assessment or
comprehensive assessment, for the confirmation of facts through the personal
hearing of the dealer in which case the penalty under section 29(3), in
addition to interests, shall also be payable. As stated above the partial
acceptance against a particular parameter will not be accepted.
i. The facility of CDA Compliance will
not be available to LTU dealers or PSI cases or refund claiming dealers or the
cases pending for investigation or the cases specifically selected for
comprehensive audits or assessments for the period 2012-13. As stated earlier,
the cases selected for comprehensive audits or assessments pertaining to period
2012-13 is displayed on the MAHAVAT web-site.
7. Benefits of the online CDA Compliance:
The dealer will
not be required to come to the department for verification of the books of
accounts. The audit parameters selected are clear and generated from the
dealer’s own submissions. In most of the cases, there is a single audit parameter
which is easy to comply. The dealer will be saved from the cost of compliance
through the online compliance mechanism.
8. Communication of case closure in form
605:
The department
will separately inform the closure of the CDA cases in which full compliance is
received and the due taxes and interests have been paid. Such a communication
will be in form 605.
9. The dealers are requested to
positively respond to the contents of this circular. This Circular cannot be
made use of for legal interpretation of provisions of law, as it is
clarificatory in nature. In case of any doubt, the dealer may contact the
designated officer on the telephone number provided in Form 604 (A) or
mentioned in CDA Cases list on Mahavat website.
You are
requested to bring the contents of this circular to the notice of all the
members of your
association.
(Rajiv Jalota)
Commissioner of Sales Tax,
Maharashtra State, Mumbai.
No. JC/EIU/CDA/2015-16 Mumbai. Dt. 14/08/2015
14/08/2015.
Trade Circular No. 12T of 2015.
Copy forwarded to:-
a) Special Commissioner of Sales
Tax, MS, Mumbai.
b) All the Addl. Commissioners of
Sales Tax in the State.
c) All the Joint Commissioners of Sales Tax in
the State.
d) All the Deputy Commissioners of Sales Tax
in the State.
e) The Sales Tax Revenue Audit, Mumbai and
Nagpur.
Copy forwarded with compliments and for information to :-
a) The Principal Secretary,
Finance Department. Mantralay, Mumbai.
b) The officer on special duty, Finance
Department, Mantralay, Mumbai.
(G. V. Bilolikar)
Joint Commissioner of Sales Tax,
Economic Intelligence Unit,
Mumbai.
