To, <\/p>\n
\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.<\/p>\n
\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026….<\/p>\n
No.: JC\/EIU\/CDA1213\/2015-16 <\/span> Mumbai. Trade Circular No.12T of 2015 <\/p>\n <\/p>\n Subject<\/strong>: The Computerized Desk Audit<\/strong> (CDA)<\/strong> for the period 2012-13. <\/strong><\/p>\n Reference<\/strong>: Trade Circular No. The department 2. Selection of cases for the regular The department 3. The CDA parameters and the cases The CDA findings <\/strong><\/p>\n Sr. No. Audit 1 Tax Credit (set-off) 2 Tax 3 Tax 4 Tax 5 Tax credits (set-off) from suppliers who are 6 Tax 7 Excess <\/span> complete 8 Excess tax credits <\/span>complete annexure A. 9 Asked 10 Asked 11 Excess tax credit <\/span> amount matches The dealers, in 4. The CDA compliance system available on The Computerized a) The communication of the CDA findings in Form 604 A <\/strong>followed by the Annexure b) The CDA Web Compliance Form<\/strong> in which the c) The Interest Utility for calculation of interest d) The dealer can fill Payment details & Return 5. Communication of findings of CDA through The After log in, The CDA findings in form 604 A<\/strong> (HTML file) After 6. Compliance to the CDA and Payment of due The compliance a.<\/strong> The dealer shall go through the b.<\/strong> The dealer may accept the audit c.<\/strong> in case of accepted tax liability d.<\/strong> If the dealer had already made tax e.<\/strong> As per the Explanation to section It may be noted that without the payment of f.<\/strong> Once the tax and interests are paid g.<\/strong> The dealer would then fill in the h.<\/strong> The dealer is at liberty to disagree i.<\/strong> The facility of CDA Compliance will 7. Benefits of the online CDA Compliance: <\/strong><\/p>\n The dealer will 8. Communication of case closure in form The department 9.<\/strong> The dealers are requested to You are association. <\/p>\n (Rajiv Jalota)<\/p>\n Commissioner of Sales Tax, <\/p>\n Maharashtra State, Mumbai. <\/p>\n <\/p>\n
\nDt.- 14\/08\/2015.<\/p>\n![](\"file:\/\/\/C:\/Users\/Admin\/AppData\/Local\/Temp\/msohtmlclip1\/01\/clip_image001.gif\")
<\/p>\n
\n14T of 2014 dated 06-08-2014. <\/p>\n
\nhas now generated Computerized Desk
\nAudit (CDA)<\/strong> reports for the period 2012-2013 after analyzing electronic
\ndata pertaining to e-Returns, audit reports in form e-704 and annexures thereof
\nuploaded by all the dealers. The CDA for this period has resulted into findings
\nof likely tax liability in respect of some of the dealers. The CDA findings for
\nthis period are available through dealers’ access on the web site www.mahavat.gov.in
\nand also dealers can submit compliance electronically. The dealer will not be
\nrequired to visit the sales tax office for audit period if he agrees with the
\nfindings of the CDA and pays tax as per CDA along with applicable interests. <\/p>\n
\nassessment for the period 2012-2013: <\/strong><\/p>\n
\nhas selected the cases for comprehensive assessment for the year 2012-2013. The
\nfacility of CDA will not be available to these Assessees. Assessees, in these
\ncases, will be required to attend before the assessing authority for the
\ncomplete verification of their books of accounts. The list of assesses selected
\nfor assessment is displayed on the web site www.mahavat.gov.in . <\/p>\n
\nselected for the CDA for the period 2012-2013: <\/strong><\/p>\n
\nhave been generated on 11 parameters as shown in the table below. <\/p>\n
\nParameter Description<\/strong><\/p>\n
\nfrom non-genuine suppliers <\/p>\n
\nCredit (set-off) from TINS not existing in MAHAVIKAS registration database <\/p>\n
\nCredit (set-off) from Registration Cancelled Suppliers <\/p>\n
\nCredit (set-off) from suppliers who are return non-filers for the complete year\n<\/p>\n
\ncomposition dealers filing only Form 232 <\/p>\n
\ncredits (set-off) from suppliers not showing taxable sales in returns<\/p>\n
\ntax credits (set-off) in annexure J2 of buyer where supplier has filed <\/p>\n
\nannexure 11 but has shown no sale to the buyer <\/p>\n
\n(set-off) in annexure 12 of buyer where supplier has filed <\/p>\n
\nbut has shown less sales to the buyer <\/p>\n
\nto pay amount in Part I of Form e-704 under MVAT Act <\/p>\n
\nto pay amount in Part I of Form e-704 under CST Act <\/p>\n
\n(set-off) in annexure J2 claimed by buyer where Gross purchase <\/p>\n
\nwith Gross Sales amount shown by seller in annexure J1<\/p>\n
\nwhose cases, discrepancies have been found in any or all of the parameters as
\nabove, and whose names appear in CDA
\nDealer List -2012-2013<\/strong> on the web site www.mahavat.in may opt for
\ncompliance to the CDA through the online system.<\/p>\n
\nthe web site: <\/strong><\/p>\n
\nDesk Audit compliance system consists of; <\/p>\n
\nwherein the dealer can see the details
\nof the transactions pertaining to the CDA parameters.<\/p>\n
\ndealer can accept or reject the parameter-wise tax liability <\/p>\n
\nunder section 30(2) <\/p>\n
\ndetails and submit online compliance. <\/p>\n
\na notice in form 604 A i.e. an intimation u\/s, 63(7) of the MVAT Act:<\/strong><\/p>\n
\ncommunication of the CDA findings shall be in notice in form 604 A<\/strong>, It shall be available to the
\nconcerned dealer on the web site
\nwww.mahavat.gov.in.<\/strong> The dealer will be required to login with his user id
\nand password. <\/strong><\/p>\n
\nthe dealer will open the link “Computerized Desk Audit” and select
\nthe relevant financial year to download CDA findings. After clicking the link
\nfor download, CDA findings in form 604 A<\/strong>
\nwill be downloaded in zipped file and can be saved by the dealer as HTML file.
\nAt the same time an acknowledgment will be generated for the department
\nregarding successful delivery of CDA
\nfindings in form 604 A.<\/strong> The said acknowledgment will also be available to
\nthe dealer on the web-site. <\/p>\n
\nwill be available to the dealers from 20th
\nAugust 2015 <\/strong>through their log in IDs on MAHAVAT website as stated above.
\nThe dealers will also receive the CDA
\nfindings in form 604 A<\/strong> (zipped HTML file) through e-mails on the e-mail IDs
\nwhich are available with the department. An intimation about selection of case
\nunder CDA category will also be intimated to the dealer through customized SMS.<\/p>\n
\ncompulsorily downloading CDA findings in
\nform 604 A<\/strong>, the link for CDA compliance web-form will be available to the
\ndealer for compliance. It may be noted that unless the CDA findings in form 604 A<\/strong> is downloaded, the dealer will not be
\nable to access the CDA Compliance Form.<\/p>\n
\nTax and Interest<\/strong><\/p>\n
\nto the CDA is required to be made directly on the website. For this purpose,
\nthe dealer would be required to access the “CDA
\nCompliance Form” <\/strong>for the relevant year in the link “Computerized
\nDesk Audit” on the web site
\nwww.mahavat.gov.in<\/strong> through his login ld and the password. This report shows
\nthe audit parameters and the related tax liability in a tabular form. The
\nfacility of acceptance or denial of any of the audit parameters and also the
\nfacility for entering interest payments u\/s 30(2) and 30(4) have also been made
\navailable to the dealer through a button on the same web page. Also a button is
\nprovided for accessing Interest calculation utility. <\/p>\n
\ninformation provided in CDA so as to arrive at a decision as to whether the
\nadditional tax liability for each audit parameter is acceptable to him or not.
\nFor this purpose he may go through the details as mentioned in CDA findings in form 604 A<\/strong> (html file)
\nwhere the tax liability against each audit parameter in CDA is supported by
\nparty-wise sale \/ purchase transactions. <\/p>\n
\nparameter and the tax liability thereof in terms of any or all of the audit
\nparameters. For his acceptance, he will select ‘YES’<\/strong> from the drop down menu against the relevant parameter. The
\ndealer may not accept the audit parameter and the tax liability thereof. For
\nhis non-acceptance he will select ‘NO’<\/strong>
\nfrom the drop down menu against the relevant parameter. Partial acceptance of tax liability against any parameter is not
\nprovided for.<\/strong> However, the dealer may accept liability on account of some
\nparameters and may deny the tax liability on some other parameters. The dealer
\nshould select ‘NO’<\/strong> if the parameter
\nrisk is zero. <\/p>\n
\nthe dealer would calculate the interest payable under section 30(2) using the
\nutility provided under the button “Calculate Interest”. The dealer
\nhas to distribute the admitted tax liability across all return periods
\napplicable as per the periodicity if the payments are made before 1st<\/sup>
\nApril 2015 e.g. asked to pay category payment. If the payments are made on or
\nafter 1st<\/sup> April 2015, then the dealer has to calculate interest applicable
\nfor Annual revised return as per the amendment in section 30(2) applicable for
\nsuch periods. Depending upon the applicable due dates, the system will
\ncalculate interest for relevant return periods. The dealer is required to
\ncalculate interest on the total tax admitted in Compliance web-form excluding
\nany interest amount if included in asked to pay parameters. The dealer would
\nalso calculate the interest payable under section 30(4), as may be applicable,
\nand first pay the net tax and the interest so calculated. Necessary validations
\nhave been provided so that the CDA Compliance Report gets accepted only if the
\ntax liability and the applicable interests are fully paid in relation to the
\naccepted parameters. <\/p>\n
\npayments for the audit parameter now communicated to him, then such chalan
\ndetails can be entered in the Chalan form available by clicking “Payment
\nbutton” provided in the CDA Compliance web-form. The details about balance
\nadditional tax, if any, paid after receipt of CDA report can be entered in
\nanother chalan added by clicking the “Payment button”. The facility
\nof entering multiple chalan details under MVAT and CST Acts is provided the
\n“Payment button”. <\/p>\n
\n30(4), if the additional tax liability is less than 10 percent<\/strong> of ‘Taxes paid’ as per the admitted tax liability in
\nreturns \/ revised returns (after adjusting tax credits) filed before receipt of
\nCDA intimation, then interest u\/s 30(4)<\/strong>
\nis not payable. Similarly, if the additional liability is on account of CST
\ndeclarations not received by the dealer, then also interest under section 30(4)
\nis not payable. If a dealer admits some or all of the audit parameters and the
\nadmitted tax liability is below 10% of the taxes paid along with returns filed
\nbefore delivery of CDA intimation, then he will not be required to pay interest
\nunder section 30(4). <\/p>\n
\napplicable interests, the CDA Compliance will not be accepted on the web-site.
\nIt may also be noted that the physical submission of the CDA Compliance will
\nnot be accepted. <\/strong><\/p>\n
\nthe dealer would then file the annual
\nrevised return<\/strong> as contemplated u\/s
\n20(4) (c)<\/strong> showing the revised details appropriately. <\/p>\n
\ndetails of tax and interest payment in the CDA compliance report and confirm
\nthe same by clicking the “Submit
\nCompliance”<\/strong> button on the web page of the “CDA Compliance
\nReport”. The compliance to the CDA is to be made on or before 18.09.2015.<\/strong> It is therefore in the
\ninterest of the dealer to download the “CDA Report” and the
\nintimation in form 604 A as soon as possible. The online submission of the CDA
\nCompliance Report will be treated as full compliance in relation to admitted
\naudit parameters’ additional tax liability. Full compliance related to a parameter will result in closure of the
\nparameter. <\/strong><\/p>\n
\nwith the CDA, However, all the cases where parameters have not been accepted
\nwill be taken up for scrutiny, by way of Issue Based Assessment or
\ncomprehensive assessment, for the confirmation of facts through the personal
\nhearing of the dealer in which case the penalty under section 29(3), in
\naddition to interests, shall also be payable. As stated above the partial
\nacceptance against a particular parameter will not be accepted. <\/p>\n
\nnot be available to LTU dealers or PSI cases or refund claiming dealers or the
\ncases pending for investigation or the cases specifically selected for
\ncomprehensive audits or assessments for the period 2012-13. As stated earlier,
\nthe cases selected for comprehensive audits or assessments pertaining to period
\n2012-13 is displayed on the MAHAVAT web-site. <\/p>\n
\nnot be required to come to the department for verification of the books of
\naccounts. The audit parameters selected are clear and generated from the
\ndealer’s own submissions. In most of the cases, there is a single audit parameter
\nwhich is easy to comply. The dealer will be saved from the cost of compliance
\nthrough the online compliance mechanism. <\/p>\n
\n605: <\/strong><\/p>\n
\nwill separately inform the closure of the CDA cases in which full compliance is
\nreceived and the due taxes and interests have been paid. Such a communication
\nwill be in form 605. <\/p>\n
\npositively respond to the contents of this circular. This Circular cannot be
\nmade use of for legal interpretation of provisions of law, as it is
\nclarificatory in nature. In case of any doubt, the dealer may contact the
\ndesignated officer on the telephone number provided in Form 604 (A) or
\nmentioned in CDA Cases list on Mahavat website. <\/p>\n
\nrequested to bring the contents of this circular to the notice of all the
\nmembers of your <\/p>\n