Date of Vat Audit extended

The Hon’ble High Court has directed the Sales Tax Department to extend the date of filing the audit report in Form 704 for the year 2005-06, up to 30th June 2007.  Accordingly, the date for filing of Form 704 in respect of the year 2005-06 is administratively extended to 30th June, 2007.

Consequently the date of filling revised return, if any to be filed as a result of Audit Report, is now extended to 31st July 2007.  No legal action will be taken against the dealers who abide by the abovementioned revised deadlines.

It is also clarified by the Commissioner of Sales Tax in Cir. 36T/07 dt.28-04-07 that to facilitate the department to update the dealer’s data in the report, TIN should also be shown in the right hand top corner of the front page the form in bold letters with borders in red ink as shown below: 

The dealers are also requested to submit their e-mail addresses at the time of filing the audit report in form-704. In areas other than Mumbai, Form 704 will be accepted in the office of the respective Joint Commissioner of Sales Tax (Adm).  In the places where the office of the Joint Commissioner of Sales Tax is not located, it will be accepted in the office of the Deputy Commissioner of Sales Tax (Adm) or Assistant Commissioner of Sales Tax (Adm), as the case may be.

Some Notifications

1. By a Notification dated 14th March, 2007 in the list of organizations namely Consulate General of the countries mentioned in the original Notification dated 24th February, 2006 an amendment is made. This organizations are eligible for exemption from payment of tax subject to conditions mentioned in the notification. In place of the country Serial Arab republic the name “The Federative Republic of Brazil". Is substituted.

2. By a Notification dated 17th January 2007 the original notification delegating the power under various sections to Jt. Commissioner is amended. The original notification was 23rd November, 2006.

3. By a notification dated 12 January, 2007 in entry relating to notified goods of intangible or incorporeal nature (C-39) one more entry is added. No. 13 entry now is Credits of Duty Free Replenishment Certificate. Therefore with effect from 12th January, 2007 DFRC would be subject to 4% tax.

4. Kindly refer to Circular No. 25T dated 15-3-2007 reoported earlier. The said notification dated 1-1-2007 is replaced by yet another notification dated 26-4-2007. The contents of the same as given in Circular No. 35T of 2007 dated 26-4-2007 are as follows:-

   Sr.No.	Class or Classes of Sales	Conditions
   1)	Sales by a registered dealer excluding the sale of motor spirits covered by entry Nos. 5 to 10 of Schedule–D appended to the  Act. a) to a registered  dealer being  an electric power  generating company as defined in the  Electricity Act, 2003, orv b) to a registered dealer  holding a  licence for transmission  of electricity under the  Electricity Act, 2003, or c) to a registered dealer  holding a licence for distribution of electricity under the  Electricity Act, 2003.	i) The goods purchased shall be  used in the generation, transmission  or distribution of electricity. ii) The authorized officer of the organisation referred to in column  (2) shall, by the end of April, furnish to the  Commissioner, a Statement of accounts of purchases effected in the immediate preceding financial year, in theproforma appended to this notification. iii) The purchasing organisations referred to in column (2) shall be certified by the Commissioner on application and the said certificate shall be liable for cancellation on breach of any of the  conditions.
   2)	Sales by a registered dealer, to the Mahanagar Telephone Nigam Limited or Bharat Sanchar Nigam Limited, or any other telephone service provider holding a licence granted under the Indian Telegraph Act, 1885 (13 of 1885) or Indian Wireless Telegraphy Act, 1933 (17 of 1933) to establish, maintain and operate telephone services upto the subscriber’s terminal connection, except the motor spirits covered by entry Nos. 5 to 10 of Schedule-D appended to the Act.	(i) The goods  purchased shall be used by the purchaser in the generation, transmission,  distribution or reception of telecommunication signals (ii) The authorized officer of the organisation  referred to in column (2) shall, by the end of April, furnish to the Commissioner, a Statement of accounts of purchases effected in the immediate preceding financial year, in the proforma appended to this notification. (iii) The purchasing organisations referred to in column (2) shall be certified by the Comissioner on application and the said certificate shall be liable for cancella- tion on  breach of any of the conditions.

5. By a circular No. 34T of 2007 dated 24-04-2007 the Hon’ble Commissioner has corrected yet one more circular issued earlier i.e. ? circular A No. 13T of 2007 dated 7-2-2007.The original circular reads as follows: 

2. The dealer should enclose the incorrect TIN registration certificates in original and a photo copy of the original TIN application in Form 108, if available, along with the said application. This will facilitate expeditious corrective action.”
   
   This paragraph is now modified and substituted as follows:–

3. The application shall be accepted and an acknowledgment (as per Annexure B)  shall be issued to the dealer across the counter.”

6. Two more detailed circulars are issued one is circular No. 30T of 2007 dated 30-04-2007 regarding grant of Administrative Relief to Un Registered Dealer and the other one is regarding – Administrative relief in respect of sale and lease of “Copyright” of Cinematographic films including vide of films” under The Bombay Sales Tax Act, 1959 and The Lease Tax Act, 1985. Both shall be discussed in the next issue.