FILING OF RETURNS, ASSESSMENT AND COLLECTION OF TAX, REFUND

FILING OF RETURNS, ASSESSMENT AND COLLECTION OF TAX, REFUND

7.4         Approval of refund

The amount refundable to any person shall be subject to the approval from the following authorities who may, by order in writing passed after providing opportunity of being heard to the affected person, change the amount of refund or order that no refund is due. The following authorities shall be competent to allow refund, arising from a single order, of the amount mentioned against each:

1.	Commissioner	Any amount
2.	Officer incharge of the range	Rs. 10,00,000/-
3.	Officer incharge of the district	Rs. 5,00,000/-
4.	Excise and Taxation Officer or Assistant Excise and Taxation Officer	Rs. 50,000/-

The lower authority/authorities shall submit the record of the case along with his/their recommendation(s) to the competent authority at the appropriate level at least 30 days before the time prescribed for issuing refund without interest lapses and the competent authority shall intimate its decision to the lower authority/authorities well in time. It may, by order in writing, increase or decrease the amount of refund or may order that no refund is due but no adverse order shall be passed without giving the affected person a reasonable opportunity of being heard.

7.5         Refund adjustment against any dues

Before any refund is given to any person under this Act it shall be first adjusted with any amount due from him under this Act or the Central Act for any period and the balance, if any, only shall be refunded to him.

(a) If the dealer desires payment by adjustment against any amount subsequently payable by him, he shall be issued a refund adjustment order in Form VAT-G9 authorising him to deduct the sum to be refunded from the amount payable by him in respect of the subsequent return period or periods following that in which the refund adjustment order is issued or for any amount determined to be payable by him subsequently.
(b) In support of any claim for deduction the dealer, shall attach the refund adjustment order to the subsequent return(s) to be furnished by him under the Act or to the treasury receipt showing the credit into the appropriate Government treasury of the amount in respect of which a demand notice has been issued to him.
(c) After allowing such deductions, the assessing authority shall cause the refund adjustment order to be cancelled.
(d) The refund adjustment order shall be transferable and the transferee shall have the same rights as the transferor had in respect of the refund adjustment order before its transfer. The credit of payment against a refund adjustment order shall be allowed after due verification.

7.6         Final Payment of refund with interest

(i) Any amount ultimately found due to any person, which he paid as a result of an order passed under this Act, shall be refunded to him with simple interest at the rate of one per cent per month for the period from the date of payment to the date when refund is given to him.

(ii) Any amount, not falling within the above part, refunded after a period of 60 days from the date of making an application under section 20 (5) shall carry with it simple interest at the rate of one per cent per month for the period from the date of making the application to the date when the refund is made.

(iii)Any amount due to a dealer under section 12 (4) but not refunded to him within 60 days from the date of order of approval of the refund by the prescribed authority shall carry with it simple interest at the rate of one per cent per month for the period from the date of order of approval of the refund by the prescribed authority to the date when the refund is made.

7.7         Order sanctioning interest on delayed refunds

• Where a refund payment order or a refund adjustment order is issued in respect of an amount ultimately found due to a person which he paid as a result of an order passed under the Act, the authority issuing the refund shall simultaneously record an order sanctioning the interest payable on such refund, specifying therein, the amount of refund, the period for which such interest is payable and t he amount of interest payable by the State Government, and shall communicate the same to the person to whom the interest is payable and also to the Commissioner.
• Where a refund payment order or a refund adjustment order is issued, the authority issuing such order shall simultaneously record an order sanctioning the interest payable, if any, on such refund, specifying therein, the amount of refund, the payment of which was delayed, the period of delay for which such interest is payable and the amount of interest payable by the State Government, and shall communicate the same to the dealer to whom the interest is payable and also to the Commissioner stating briefly the reasons for the delay in allowing the refund.
• In respect of the above points, where an order for the payment of interest on refunds or delayed refunds as the case may be, has been made, the sanctioning authority shall issue to the dealer interest payment order in Form VAT-G10.

7.8         Power to withhold refund

• Where an order giving rise to a refund is the subject matter of further proceedings and the taxing authority interested in the success of such proceedings is of the opinion that the grant of the refund is likely to adversely affect the recovery in the event of success of such proceedings, he may, for reasons to be recorded in writing, withhold the refund and shall, if such authority is below the rank of Commissioner, refer the case, within 30 days of the application for the refund, to the Commissioner for order.
• If a reference has been made to the Commissioner under section 21(1) in time, he may either pass an order withholding refund or direct that refund be made on furnishing of security except cash security of the like amount or decline to withhold the refund: However, if no order withholding the refund is received within 90 days of making the reference to the Commissioner, the refund shall be given forthwith.
• Indian needs GST a paperless refund mechanism similar to the system prevailing in the Income Tax. A lot is expected from GST.

7.9         Miscellaneous

• Where the dealer is unable to identify the goods purchased with the goods sold, or used in manufacturing and sold, it shall be presumed that the goods purchased have been sold, or they have been used in manufacturing and sold, as the case may be, in the chronological order in which they were acquired.
  (ii) The assessing authority shall enter in a register in Form VAT-G11 particulars of all the refunds allowed in pursuance of assessment orders, all applications for refunds and of the order passed thereon.

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FILING OF RETURNS, ASSESSMENT AND COLLECTION OF TAX, REFUND

FILING OF RETURNS, ASSESSMENT AND COLLECTION OF TAX, REFUND

5. PERIOD OF COMPLETION OF ASSESSMENT OR ASSESSMENT OR REASSESSMENT NOT TO APPLY IN CERTAIN CASES

Notwithstanding the provisions relating to the period limitation for of limitation contained in sections 15, 16 and 17, as the case may be, may be reassessment mad:

• in consequence of, or to give effect to, any order made by any court, or any authority under this Act within a period of 2 years of receipt of copy of such order by the assessing authority;
• before the expiry of 5 years following the close of the year, which any book, account, register or document seized under section 29 relates to, provided the proceedings do not extend after the expiry of the period specified in third proviso of section 29 (4).

Where the assessment or reassessment proceedings relating to any dealer remained stayed including stay of passing the final order for any period, by order of any court, or any authority under this Act, such period shall be excluded in computing the period of limitation for assessment or reassessment specified in section 15, section 16 or section 17, as the case may be.

6. RECTIFICATION OF CLERICAL MISTAKES.

Any taxing authority or appellate authority, may, at any time, within a period of 2 years from the date of supply of copy of the order passed by it in any case, rectify any clerical or arithmetical mistake apparent from the record of the case, However, no order shall be passed under section 19 without giving the person adversely affected thereby a reasonable opportunity of being heard.

7. REFUND

Introduction: If any person has charged any amount purported to be tax in excess of the tax leviable, no order allowing refund of the excess amount shall be passed in his favour by any authority under this Act or by any court unless he refunds such amount to those from whom it was charged, and where charged from a VAT dealer, the input tax shall be duly adjusted.

7.1         Conditions for Refund

Refund of input tax shall be admissible to a VAT dealer in accordance with the formula provided under section 8 (1) of this Act-

• in respect of input tax relating to the goods which have been sold in the course of export of goods out of the territory of India or have been used in manufacture and the manufactured goads have been sold in the course of export of goods out of the territory of India, in full; and
• in respect of input tax relating to the goods which have been sold in the State or in the course of inter-State trade or commerce or have been used in manufacture and the manufactured goods have been sold in the State or in the course of inter-State trade or commerce, shall be refundable to the extent the input tax exceeds the tax calculated on sale of goods on account of difference in rate of tax between the input tax and the tax calculated on sales, and the balance input tax after reducing therefrom the tax including the central sale tax levied on the sale or purchase of goods, as the case may be, shall be carried over for adjustment with future tax liability.

In continuation of the above discussion, it is confirmed that GST in India filing of refund claim has always been a tedious job in indirect taxes.

7.2         Application for Refund

A VAT dealer may on quarterly basis seek refund of input tax by making an application to the appropriate assessing authority in Form VAT-A4 and appending thereto the following documents:-

• copy of the returns in Form VAT-R1 under these rules and in Form I under the Central Sales Tax (Punjab) Rules , 1957, as applicable to the State of Haryana, for the quarter if not already filed,
• original copies of tax invoices relating to the claim of input tax in respect of the purchase of the goods;
• invoices showing the sale of the goods in the State or in the course of inter-State trade and commerce along with the documents of dispatch and delivery of the goods in other State(s);
• invoices showing the sale of the goods in the course of export out of the territory of India along with the custom clearance certificates and shipping documents;
• such other documents or evidence as the assessing authority may require for its satisfaction relating to the payment of the input tax and the tax leviable on the sale of the goods, wherever applicable.

The assessing authority shall, on receiving an application, examine the same and pass an order within 30 days of receiving the application either to allow the refund in full or in part or to disallow the same for reasons to be communicated in writing and where the refund is allowed, it shall issue to him at his option a refund payment order in form S.T.R.34 prescribed under the Punjab Subsidiary Treasury Rules or refund adjustment order in Form VAT-G9 and where it fails to do so within 60 days of the date of the assessment order allowing the refund, there shall be paid interest to the claimant at the rate of one per cent per month from the date of the order to the date when the refund payment order or refund adjustment order, as the case may be, is issued to him.

7.3         Grant of refund by assessment or by an order

 (a) Where the assessing authority finds on assessment of a dealer that he has paid any amount in excess of tax, interest or penalty assessed or imposed on him under this Act, it shall allow refund of the excess amount or allow the same to be carried forward for adjustment with future tax liability, as the case may be.

(b) Any amount refundable to any person as a result of an order passed by any court, appellate authority or revising authority, shall be refunded to him on an application containing the prescribed particulars accompanied with the following documents:-

(i) copy of the returns in Form VAT-R1 under these rules and in Form I under the Central Sales Tax (Punjab) Rules , 1957, as applicable to the State of Haryana, for the quarter if not already filed,

(ii) original copies of tax invoices relating to the claim of input tax in respect of the purchase of the goods;

(iii) invoices showing the sale of the goods in the State or in the course of inter-State trade and commerce along with the documents of dispatch and delivery of the goods in other State(s);

(iv) invoices showing the sale of the goods in the course of export out of the territory of India along with the custom clearance certificates and shipping documents;

(v) such other documents or evidence as the assessing authority may require for its satisfaction relating to the payment of the input tax and the tax leviable on the sale of the goods, wherever applicable.

The assessing authority shall, on receiving an application, examine the same and pass an order within 30 days of receiving the application either to allow the refund in full or in part or to disallow the same for reasons to be communicated in writing and where the refund is allowed, it shall issue to him at his option a refund payment order in form S.T.R.34 prescribed under the Punjab Subsidiary Treasury Rules or refund adjustment order in Form VAT-G9 and where it fails to do so within 60 days of the date of the assessment order allowing the refund, there shall be paid interest to the claimant at the rate of one per cent per month from the date of the order to the date when the refund payment order or refund adjustment order, as the case may be, is issued to him.

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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.
• india GST all tax related compliances are more effective & efficient in GST.

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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FILING OF RETURNS, ASSESSMENT AND COLLECTION OF TAX, REFUND

FILING OF RETURNS, ASSESSMENT AND COLLECTION OF TAX, REFUND

1             SUBMISSION OF RETURNS AND PAYMENT OF TAX

1.1         Filing of return by different class of dealers.

Tax payable under this Act shall be paid in the manner and at such intervals as hereinafter provided.

 The class of dealers or the assessees of the description specified in column 2 of the Table below shall for such period and at such intervals as mentioned in column 3 there against furnish to the appropriate assessing authority on or before the last day of the month following the said period, a return in such form as is specified in the corresponding entry in column 4.

<a href="http://gstsms.in">Goods and service tax in India</a>the essential ingredients are supply of goods & services, consideration, taxable person.

Table

Serial No.	Description of class or classes of dealers	Return period and interval	Return Form
(1)	(2)	(3)	(4)
1.	Dealers who are required by the assessing authority to file returns by serving upon them a notice in Form VAT-N1 under section 14(2)(b) so long as they are not covered by entry 3 below	Quarter	VAT-R12
2.	Registered dealers in whose case composition of tax under section 9 is made and is in force	As specified in the relevant rule relating to payment of lump sum for the specified class of dealers	As specified in the relevant rule relating to payment of lump sum for the specified class of dealers
3.	Registered dealers holding registration certificate or whose application for registration is pending and who are not covered under entry 2 above	Quarter	VAT-R1
4.	Government agencies, public sector undertakings or corporations procuring food grains in the State at the minimum support price who are liable to deduct tax in advance under rule 33(1)	Quarter	VAT-R4
5.	Contractees who are liable to deduct tax in advance under rule 33(2)	Quarter	VAT-R4A

1.2         Additional filing of Annual return by dealers mentioned below

 Every dealer of the description specified in column 2 of entry against serial No. 3 in Table above under section 14(1) shall in addition furnish an annual return for the last preceding year in Form VAT-R2 on or before   31st October next. The annual return shall be accompanied with:-

(i) a copy of final accounts including balance sheet as at the end of the year, profit and loss cum trading/manufacturing account for the year and

(ii) a statement reconciling the difference, if any, between such accounts and the turnover reported in the annual return verified in the following manner -

"I/We, ... ... ... ... ... ... son of S/Shri ... ... .... ... ... hereby declare that the above statement of accounts for the year ended at 31st March, .... ... in respect of M/s ... ... ... ... ... .... ... ... ... ... ... is true and correct and is based on the regular books of account maintained for the year and nothing has been concealed therein.

Date: ... ... ... ...

Place: ... ... ... ..."

Signature of dealer with status

1.3         Dealers having tax liability exceeding Rs.1 lacs

 Every dealer whose aggregate liability to pay tax under Haryana General Sales Tax Act, 1973 and Central Act for the last year or part thereof according to the returns filed by him is equal to or more than Rs. 1,00,000/- or such other sum, shall, in the manner prescribed, pay on or before the fifteenth day of each month the full amount of tax payable by him for the previous month, computed by him in accordance with the provisions of this Act and the rules made thereunder,

However, if he is not able to quantify his tax liability accurately by that time, he shall pay an amount equal to monthly average of his tax liability in the last year (or such shorter period for which he has been liable to pay tax in that year) as tax provisionally, and he shall pay the balance, if any, on or before the 25th day of the month, and the excess, if any, he may adjust with his future tax liability.

1.4         Annual commodity tax return filing is mandatory

Every VAT dealer shall furnish on or before 31st October every year an annual commodity tax return in Form VAT-R3 declaring his turnover of sales and rate of tax charged during the last preceding year in respect of each goods or class of goods of the description specified in Schedule II appended to these rules which he sold for the first time in the State.

However the return shall not be required to be filed by a VAT dealer whose tax liability including under the Central Act according to the returns filed by him in respect of the period(s) relating to the last preceding year did not exceed Rs. 100,000.
'Goods sold for the first time' means sale of goods, which have not been purchased from VAT dealers in the State.

1.5         Dealers having tax liability not exceeding Rs.1 lacs

Every dealer on whom section 14(3) does not apply, shall, in the prescribed manner, pay in the month immediately following each quarter, the full amount of tax payable by him for the quarter, computed by him in accordance with the provisions of this Act and the rules made thereunder.

1.6         Filing of Revised return due to omission or other type of error

If a dealer discovers in any return furnished by him, any omission or other error, which he could not have rectified after the exercise of due diligence before furnishing the return, he may at any time before the date prescribed for furnishing of return for the next period by him, furnish a revised return, and if the revised return shows a greater amount of tax to be due than was shown in the original return, it shall be accompanied by a receipt showing payment of the extra amount along with simple interest thereon for the period the amount remained unpaid calculated in accordance with the provisions of section14 (6), in the State Government treasury in such manner, as may be prescribed.

• Incompleteness of return due to following reasons

 Each return, which is required to be furnished under these rules, shall be incomplete unless accompanied with lists, statements, declarations, certificates and documents mentioned therein or which are required to be filed with the return under these rules. The return shall be signed by

(i) Karta in case of an HUF,

(ii) proprietor in case of a proprietorship concern,

(iii) a partner in case of a partnership firm, or

(iv) a whole time employee authorised by Karta, proprietor or partner, as the case may be, in writing in this behalf,

(v) head of the department or an officer authorised by him in case of a Government department

(vi) chairman, director, secretary or principal officer in case of a society or a company.

 A return which is unsigned or is signed by any other person, shall be treated as no return. An authorised signatory alone shall sign each list and statement accompanying the return. Any list or statement, which is unsigned or is not signed by an authorised signatory, shall be treated as no list or statement.

1.8         Failure to pay tax by a dealer

If any dealer fails to make payment of tax in accordance with the provisions of this Act and the rules made thereunder, he shall be liable to pay in addition to the tax payable by him, simple interest at 1% per month if the payment is made within 90 days from the last date specified for the payment of tax, but if the default continues thereafter, he shall be liable to pay simple interest at 2% per month for the whole of the period from the last date specified for the payment of tax to the date he makes the payment:

However the interest leviable under this Act shall not exceed the amount of tax or penalty on the non payment or late payment of tax on which such interest is charged.

CGST the filing of return, interest calculation, levy of penalty have been simplified under GST.

1.9         Adequate Proofs along with the Return

Any return furnished under these rules showing payment of any tax, tax deducted at source, lump sum, interest or any other amount due under the Act, shall be accompanied with the treasury receipts, crossed bank drafts, pay orders, refund vouchers or interest payment order in proof of the payment in full, unless such proof is already furnished to the assessing authority.

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