FILING OF RETURNS, ASSESSMENT AND COLLECTION OF TAX, REFUND

FILING OF RETURNS, ASSESSMENT AND COLLECTION OF TAX, REFUND

2. ASSESSMENT OF REGISTERED DEALER

2.1         Selection of cases for scrutiny and deemed assessment 

 The following categories of cases may be taken up for scrutiny:-

• gross turnover exceeding Rs. 5,00,00,000 rupees in a year;
• claim of input tax exceeding Rs. 10,00,000 in a year;
• claim of refund exceeding Rs. 3,00,000 in a year;
• claim of sales made in the course of inter -State trade and commerce or in the course of export of goods out of the territory of India or in the course of import of goods into the territory of India exceeding Rs. 25,00,000 in a year;
• cases of industrial units availing any tax concession under section 61(2)(d) till such units are subject to the relevant provisions in the 1975 Rules;
• fall in gross turnover or payment of tax compared to last year;
• claim of sale, purchase or consignment of goods not matching with the accounts of the other party to the transaction;
• exception cases in which ratio between purchases and sales or between input tax and output tax or between stocks and sales is way out of the general trend in the trade or industry;
• cases based on definite intelligence about evasion of tax;
• cases selected at random;
• cases of any particular trade or trades which the Commissioner may select; and
• cases in which the dealer fails to complete the return(s) in material particulars after being given an opportunity for the same.
• cases of cancellation of Registration Certificates.

Note: The Commissioner may, with the approval of the State Government, change the criteria as mentioned above for selection of cases for scrutiny.
2.2         Returns which are complete in material particulars                        

The returns relating to an assessment year have been filed and are complete in material particulars, the dealer shall, subject to the provisions of section 15(2), be deemed to have been assessed for that year:

However, where the returns are not complete in material particulars, the dealer shall be given an opportunity to complete them.

Explanation:- A return is complete in material particulars if it contains the information required to be furnished therein, is correct arithmetically, accompanied with the statutory lists, documents and proof of payment of tax due according to the return in full and is duly signed by the dealer.

2.3         Serving of Notice

 Subject to the rules which the State Government may frame for selection of cases for scrutiny in respect of dealers required to file returns under section 14 (2), the assessing authority shall, in respect of each selected case, serve on the dealer concerned, a notice in Form VAT-N2;

(a) calling upon him to produce his books of accounts and other documents which such authority wishes to examine together with any objection which the dealer may wish to prefer and any evidence which he may wish to produce in support thereof; and
(b) stating the period or the return periods in respect of which assessment or re-assessment is proposed, and he shall fix a date ordinarily not less than 10 days after the date of the service of the notice for producing such accounts and documents and for considering any objection which the dealer may prefer. on a date and at a place specified therein, either to attend in person or to produce or to cause to be produced any evidence on which such dealer may rely in support of the returns filed by him relating to the period under assessment (hereinafter referred to in this section as 'assessment period1):

However, the assessment period covered by a notice referred to in the foregoing provision shall not exceed one year and such notice shall be served on the dealer before the expiry of one year from, the last date prescribed for filing the last return relating to the assessment period or, the actual date when any return relating to the assessment period has been filed last, whichever is later.

2.4         Hearing of the evidence

On the day specified in the notice or as soon afterwards as may be, the assessing authority shall, after hearing such evidence as the dealer may produce and such other evidence as it may require on specified points, assess the amount of tax due from him:

However, no order under the above provision shall be passed after the expiry of three years from the close of the year to which the assessment relates.

2.5         Failure to comply with terms of notice

If a dealer, having furnished returns in respect of a period, fails to comply with the terms of a notice issued under section 15(2) or section 15(3), the assessing authority shall, before the expiry of 3 years from the close of the year to which such returns relate, assess to the best of its judgment the amount of tax due from him.

2.6         Failure to furnish returns

If a dealer fails to furnish return in respect of any period by the prescribed date, the assessing authority may, at any time before the expiry of three years from the close of the year to which such return relate, after giving the dealer a reasonable opportunity of being heard, assess, to the best of its judgement, the amount of tax, if any, due from him and for this purpose he may presume that his gross turnover for the assessment period is the same as for the corresponding period of the last year and input tax is nil.

However, if the return is filed in the mean time the assessing authority may consider the same.

2.7         Visit by the Assessing Authority

 The assessing authority may, for the purpose of complying with the requirements of this section, visit after prior notice any or all place(s) of business of a dealer whose gross turnover for the period under assessment exceeds Rs. 5,00,00,000 and it may inspect and examine with the assistance of such persons as it considers necessary all business activities, processes, accounts, records, documents and other things relevant to the proceedings, and the dealer shall render all the necessary assistance in carrying out such inspection and examination for as long a period as such authority considers necessary.

2.8         Miscellaneous

• The list of cases selected for scrutiny for any year shall be publicised by uploading on the website www.haryanatax.com before the expiry of the next one and a half year but non -inclusion of any case in the list shall not prevent the assessing authority to make assessment subject to limitation.
• Any assessment made under this section shall be without prejudice to any penalty imposed under this Act.
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Note - An assessment relating to a part of a year shall, for the purpose of computing time limitation under this section, be deemed to relate to the year.

 

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