TNVAT - Interest for belated payment of tax under TNVAT 1959 In Tamil Nadu

INTEREST FOR BELATED PAYMENT OF TAX

            Belated submission of TNVAT Return will attract interest at one and a quarter per cent (1.25%) of the tax payable for every month or part thereof under section 42(4) of the Tamil Nadu Value Added Tax Act 2006, from 1.1.2007 to 28.5.2013 in addition to the tax amount for the entire period of default.

        Belated submission of TNVAT Return will attract interest at two per cent (2%) of the tax payable for every month or part thereof under section 42(4) of the Tamil Nadu Value Added Tax Act 2006, from 29.5.2013 onwards in addition to the tax amount due for the entire period of default.

        Provided  that  if  the  amount  remaining  unpaid  is  less than  one hundred rupees and the period of default is not more than a month, no interest shall be paid. [Section 42(3)]

        Provided  further  that  where  a  dealer  or  person  has  preferred  an appeal      or revision against any order of assessment or revision of assessment under this Act, the interest payable under this sub section, in respect of the amount in dispute in the appeal or revision, shall be postponed till the disposal of the appeal or revision, as the case may be, and shall be calculated on the amount that becomes due in accordance with the final order passed on the appeal or revision as if such amount had been specified in the order of assessment or revision of assessment as the case may be.[Section 42(3)]

IF SELLING DEALER’S REGISTRATION CANCELLED AND ITC AVAILED BY PURCHASING DEALER

        Similarly if a selling dealer’s registration cancelled and if the input tax credit availed by the purchasing dealer, the input tax credit already availed shall be paid from the date from which the order of cancellation of selling dealer’s registration certificate takes effect, with interest for belated payment of tax at the rate of one and quarter per cent from 1.1.2007 to 28.5.2013 per month and at the rate of two per cent from 29.5.2013 onwards per month from the date of cancellation to the date of ultimate payment.  In simple Tax and interest amount has to be paid by the purchasing dealer from the date of cancellation of selling dealer’s registration certificate. [Section 19 (15)].

TDS UNDER TNVAT - Persons doing works contract and persons making tax deduction should apply for Tax Deduction Identification (TDIN)

PERSONS DOING WORKS CONTRACT AND MAKING

TAX DEDUCTION SHOULD APPLY FOR

TAX DEDUCTION IDENTIFICATION NUMBER (TDIN)

        Under Section 13 of the Tamil Nadu Value Added Tax Act, 2006, i.e. Deduction of tax at source in works contract, every person responsible for paying any sum to any dealer for execution of works contract shall at the time of payment of such sum, deduct an amount calculated at the following rate, namely:--

(i)	Civil Works Contract	Two percent of the total amount payable to such dealer
(ii)	Civil Maintenance Contract	Two per cent of the total amount payable to such deler
(iii)	All other works contracts	Four percent of the total amount payable to such dealers: (From 1.1.2007 to 9.3.2012) Five per cent of the total contract value contracts  of the works executed. (From 10.3.2012 onwards)

Now Section 13-A. Tax Deductor Identification Number (TDIN) has been introduced under the Tamil Nadu Value Added Tax Act, 2006 and hence new TDIN has to be applied in addition to TIN.

Newly introduction Section:

        13-A. Tax Deductor Identification number:-- Any person liable to make deduction of tax under Section 13 shall apply to such authority in such manner as may be prescribed and shall obtain a tax deduction identification number.

        For this purpose new Form YY has been prescribed which is available in ctd.tn.gov.in new portal under Tamil Nadu Value Added Tax Act Forms.

        The Tax Deduction at source adjustment details and Tax due, adjustment made and payable details were to be disclosed in Part E and Part F of Form K Monthly return.

https://ctd.tn.gov.in/documents/10184/10943/217+%28Act+No.13%29/5c4ced0a-6170-4f1e-b1ba-741f5f596885?version=1.1

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CST ACT 1956 - Consignment Sales or Stock Transfer under CST Act 1956 against Form F in Tamil Nadu

CONSIGNMENT SALES OR STOCK TRANSFER

UNDER CST ACT 1956 AGAINST FORM F

        Under Section 6-A (1) of the Central Sales Tax Act, 1956 a dealer may transfer his goods to his agent or depots in other states other than by way of sale which is called consignment sales or stock transfer.

        Similarly goods may be sent from head office to their branches in other States and from branches to head office in other States.

      Similarly goods may be sent from the head office to their manufacturing units in other states and from manufacturing units to the head office in other State.

       In all above cases goods were moved from one State to another State and delivered in another State without a Sale.  This transaction is called consignment sale or stock transfer.    

    As there is no sale involved, the transaction is eligible for exemption under the Central Sales Tax Act, 1956. 

        For that purpose Form F has to be produced to the Department each month.

        Form F is to be issued by transferee of goods to transferor.

        The transferor of goods can claim exemption from CST on submitting the Form to the department.

        This Form F is compulsory for claiming exemptions on the   Stock Transfer or Branch Transfer i.e. for consignment sales.

        In the absence of Form F, all such transfers will be treated as normal interstate sales and CST will be levied.

        Single Form F may cover transfer of goods by a dealer, to any other place of his business or to his agent or principal, as the case may be, effected during a period of one calendar month.

       

     If the space provided in Form F is not sufficient of making the entries, the particulars specified in Form F may be given in separate annexures attached to that form so as it indicated in the form that the annexures form part and every such annexure is signed by the person signing the declaration in Form F.    

       The above inward transactions which requires Form F  should be disclosed in Annexure 10 of the Form I Monthly return as List of Inter-State Branch Transfer and Consignment Transfer Inward with types of transfers

i)                  Value of Inward Transferred by Branch Transfer

ii)               Value of goods Inward Transferred by Consignment Transfer

iii)           Value of goods Inward Transferred either by Branch Transfer or Consignment Transfer.

When the particulars in Annexure 10 is filled, Form I Return will be filled automatically in Sub-Column A-Inter-State Stock Receipts, B-Inter-State Consignment Transfer Receipts and C-Total Inter-State Stock Inward and Receipts of Column 3  of Section A i.e. Details of Total Inter-State Branch Stock Inward.

        As per Rule 4 (3-A) of the Central Sales Tax (Tamil Nadu) Rules, 1957 every principal, who claims exemption on the sale of goods on consignment account through agents outside the State, shall maintain the following records, namely:--

(a)     a register showing the name and full address of the agent to whom goods were consigned together with description of the goods so despatched for sale, on each occasion and their quantity and value;

(b)     the originals of authorisation sent to the agent for sale of the goods

(c)    the originals of the written contract, if any entered into between the principal and the agent;

(d)     copies of bills issued by the agents to the purchasers;

(e)      pattials, i.e. accounts rendered by the agents to the principals from time to time showing the gross amount of bill and deduction on account of commission and incidental charges;

(f)      extract of ledger account of the principal maintained in the books of the agents duly signed by such agents;

(g)    copies of railway or lorry receipts under which the goods were so despatched; and

(h)  A register showing the date and mode of remittance of the amount to the principal.

The outward transactions for which requires Form F is to be received from the person to whom the goods were sent should be disclosed in Annexure 24 of the Form I Monthly return as List of Inter-State Branch Transfer and Consignment Transfer Outward with types of transfers

i)                  Value of Outward Transferred by Branch Transfer

ii)               Value of goods Outward Transferred by either by Consignment Transfer.

When the particulars in Annexure 24 are filled Form I Return will be filled automatically in Sub-Column B of Column 4 of Section B i.e. Inter-State Consignment Transfer (Annexure 24) under Details of Inter-State Branch Transfer and Export.

TNVAT - Clearing and Forwarding Agents (C & F Agents) to submit Transit Passes at the Check Posts in Tamil Nadu

CLEARING AND FORWARDING AGENTS (C & F AGENTS) ALSO TO SUBMIT TRANSIT PASSES FOR THE GOODS SPECIFIED IN THE SIXTH SCHEDULE AT THE CHECK POSTS.

        Under Section 2 new sub-section (12-A) has been added.

        As per the Tamil Nadu Value Added Tax Act, 2006, Section 2 (12-A) which came into force with effect from 29.1.2016 as per Act No. 13 of 2015, “clearing and forwarding agent” means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding of goods in any manner to any other person;

        Similarly Section 70 (2) has also been modified:

        Under Section 70 (2) of the Tamil Nadu Value Added Tax Act, 2006 “seller or consignor or transferor” has been substituted with “seller or consignor or transferor or clearing and forwarding agents” and hence the “clearing and forwarding agents” should obtain a transit pass as shown below:

Section 70 (2) (a): When any goods specified in the Sixth Schedule, are sold or consigned or transferred by any goods vehicle to another State from any place within the State, the seller or consignor or transferor or clearing and forwarding agent of the goods shall obtain a transit pass in the prescribed form and in the prescribed manner, from the assessing authority having jurisdiction over the place from where the goods are consigned or transferred to other State.

(b) The consignor or transferor or clearing and forwarding agent of the goods shall deliver or cause to be delivered, within the prescribed period, the transit pass to the officer in- charge of the last check post or barrier, before the exit of the goods vehicle from the State.

(c) If  the seller or consignor or transferor or clearing and forwarding agent of the goods fails to comply with clause (b), it shall be deemed that the goods carried thereby have been sold within the State by the consignor or transferor or clearing and forwarding agent and such seller or consignor or transferor or clearing and forwarding agent shall, notwithstanding anything contained  in  section  3,  be  liable  to  pay  tax  in  accordance  with  the provisions of this Act, irrespective of the quantum of turnover and also penalty which shall be one hundred and fifty per cent of such tax.

https://ctd.tn.gov.in/documents/10184/10943/217+%28Act+No.13%29/5c4ced0a-6170-4f1e-b1ba-741f5f596885?version=1.1

E-C TAX NEW PORTAL - Persons to sign up in the new Portal of ctd.tn.gov.in

HOW TO SIGN UP IN THE NEW PORTAL OF

COMMERCIAL TAXES DEPARTMENT

       In the newly introduced e-C Tax Project all communications will be only through Email.  Hence a valid or active Email ID is compulsory for communication purpose.  Some dealers may have created Email IDs at the time of registration and they may not use the Email ID or   forgotten the password for the Email ID created at the time of registration.  Hence before signing in the new portal verify existence of Email ID (through website free Email verifier) and belongs to you. After ascertaining the Email ID belongs to you, enter your Email with correct password and if you have forgotten the password recover the password or create a new password by entering the details and then proceed further.

       Similarly SMS messages will be sent to the Mobile Number furnished for communication and hence furnish Mobile Number which is active.

SIGN-UP PROCESS

v   Click any browser.

v   Type ctd.tn.gov.in and enter.

v   Click Commercial Taxes Department – Tamil Nadu.

v   Click e-Services link on the left side of the Portal.

v   Click New User? Sign Up under Sign in link.

v   For the first time in ctd.tn.gov.in website click New User? Sign up.

v   In User Type there are 7 categories:

·       C & F Agent / Courier / Consignor / Custodian / LSP / Postal Agency

·       Chartered Accountants (CA) / Cost and Work Accountants (CWA)

·       Foreign Diplomatic Mission / Consulates (FDMC)

·       Government Department (Entry with TIN if registered)

·       New Applicant / Existing Dealer (Entry with TIN if registered)

·       VAT Practitioner

·       Works Contractee (WC)

v   Choose the category and fill the details without any omission.

v   On submit, sign up agreement screen TNCDT Web Portal is shown. Please read them and tick in I agree checkbox provided at the end of the screen and click on Submit.

v   Immediately the page will be displayed specifying that Verification link has been successfully sent to your Email ID. At the same time OTP (one time pass code) will be sent to the Mobile Number through SMS.

v   Open your e-mail account and there will be a message as shown below:

Tamil Nadu Portal : Sign Up Verification process

Dear User,

Please click on the below link to get your Email ID verified.
Click Here

Verification Code ****484 is generated and sent to your registered mobile number ******8351

Kindly use this details to complete Sign Up process.

Regards,
Commercial Taxes Department
Government of Tamil Nadu

v    The above Email message is called verification link message. Please click on the verification link shown as Click Here.

v    Once Click Here in the Email is clicked the dealer will be redirected to a new page (called Code Verification Details) where the dealer has to enter Email ID, Mobile Number and Verification Code containing 7 digits received to Mobile through SMS.

v    Kindly note that the Email ID and Mobile Number must be used for only one TIN. Same Email ID and Same Mobile Number will not be accepted for another TIN.

v    After verification of Email ID a system generated Password will be received to the Email ID of the Dealer.

v    The existing dealers may change the Password for the first time.

v    There will be another Email to the Email address showing  Login Credentials as shown below:

Tamil Nadu Portal : Login Credentials

Dear User,

Your Tamil Nadu CTD Web Portal credentials has been created. Your login id and default password are :

Login Id:-33123456789 

Password:- AbVdvisk

And your Transaction Password for Tax Type :-VAT , is : vatTngst

Use these credentials, to log into Tamil Nadu CTD Web Portal and complete the registration process.


Regards,
Commercial Taxes department
Government of Tamil Nadu

v   Now click e-Services in ctd.tn.gov.in. Home Page and enter your TIN (in Login ID) and Password and enter arithmetical calculation result and click login.

v   Then Login on the portal with the default credentials generated and enter TIN (in Login ID) and Transaction Password received for Tax Type VAT and enter arithmetical calculation result and click Login Button. Now Login with the Default Credentials were generated.

v   On first Login, change the default password and security question and answer in password change screen. Success page on password change will appear with Re Login Button. Click on re-login and login again with the Email ID / Tin and new password. Now you have been successfully logged in and you can access other e-services.

E-filing method and change of tnvat.gov.in website to ctd.tn.gov.in - e-C Tax Portal with effect from 29.1.2016 in Tamil Nadu

E-FILING METHOD AND CHANGE OF WEBSITE IN TAMIL NADU

        The Government of Tamil Nadu has introduced e-C Tax Project on 29.1.2016 from the existing old system to a new system,      

                                  Old System:     www.tnvat.gov.in

                                  New System:    www.ctd.tn.gov.in

DIFFERENCES BETWEEN OLD SYSTEM AND NEW SYSTEM

DETAILS	OLD SYSTEM	NEW SYSTEM
Entering address	www.tnvat.gov.in	www.ctd.tn.gov.in
New Dealer Signup	After making sign-up passwords will be sent to the dealer’s e-mail ID	After making sign-up passwords will be sent to the dealer’s e-mail ID or the Mobile number (The OTP i.e. One time password sent to Mobile should be entered within three minutes) The e-mail-ID and mobile number linked with one TIN cannot be used for other TIN.
PAN Details	Invalid PAN details to be modified by giving details manually	The dealer will be prompted to update PAN details as per CBDT, if it is invalid. Existing PAN details and details as per CBDT are shown to the dealer for verification and will be updated into system once submitted. Dealer can use data correction functionality only once and before amendment.  After doing amendment, dealer cannot use data correction functionality.
Payment	Cash / Cheque / Demand Drafts accepted for payment and also e-Payment	No Cheque / Cash payments will be accepted at Assessment Circles for all remittances including Registration Fees. Only E-payment will be allowed for all payments. In order to make payment against old demand, dealer can select the option of “Against Order for Past Period” in Payment Type under e-Payment menu.
Digital Signature	….	Facility for filing of returns using Digital Signature has been introduced. The dealers who filed E-returns need not file hard copy of returns filed.  But the dealers having no digital signature facility should file hard copy of returns or documents filed by affixing the signature of the dealer or the person authorized within the stipulated period, Failure to submit the signed hard copy of such electronic form or document, along with such enclosures, within the period prescribed shall invalidate such electronic submission. All persons registered under the Companies Act, 1956 (Central Act 1 of 1956) or the Companies Act, 2013 (Central Act 18 of 2013) as the case may be, shall submit the application and connected documents in electronic form with digital signature certificate only.
Filing of returns	Only TNVAT and CST returns are filed electronically.	Monthly Returns under TNVAT Act, CST Act, Entertainment Tax Act and Tamil Nadu Tax on Motor Vehicles Act were to be filed from the month of March 2016 (February 2016 returns) along with payment.
C Form and F Form generation	Filing of monthly returns along with payment and online generation of C Form and F forms can be done only upto the month of January 2016 returns	From March 2016 (February 2016 return) monthly returns along with payment and online generation of C Form and F Form can be done.
Form LL	…	E-Transit pass (Form LL) shall be generated from 1.3.2016.
Form JJ, MM, KK	…	Online generation of Form JJ, Form MM, and Form KK has to be generated only electronically from 1.3.2016 onwards.
TDN and TDS payments	…	Generation of TDN by Contractors and online TDS payment has to be done from 1.3.2016
Signup by Chartered Accountants, Cost Accountants and VAT Practitioners and others.	Any one can enter into the website and file returns.	Only registered dealers or person with valid TIN and other Registration can enter into the website. New Facility has been introduced for Chartered Accountants, Cost Accountants, VAT Practitioners and Others i.e. Government Departments, Foreign Diplomatic Mission, Consulates (FDMC) CA and CMA Logistic Service Provider (Transporter, C and F agent, Custodian, postal agency etc., registered with the Commercial Taxes Department to enter into the Website and for that purpose they should signup in the new system and get   authorised to do certain activities otherwise they cannot enter into the website
Filing of Revised Returns	Any revised return to be filed manually upto the month of January, 2016	Revised return from February 2016 to be filed through E-returns>File my return only

If there are more doubts follow the following procedure.

1.   Go to the Browser and type www.ctd.tn.gov.in and enter into Commercial Taxes Department’s new portal website.

2.   On the right side bottom Getting Started window will appear and go through the system requirements and update your system if necessary. Updating of system requirements will be possible only to the registered users of this portal.

3.   In Serial No.1 of Sign Up For Existing Dealer and Sign Up for New User, Click the Click here menu available. The following details will be available for download.

·        How to File E-Return for Unregistered dealers

·        How to File Works Contractor Form S

·        How to Proceed E-Payment

·        How to Generate Online Statutory Forms through Returns

·        How to Use Digital Signature

·        How to Apply E-Refund

·        How to apply E-appeal

·        How to Sign up for Web Portal

·        How to E-Register

·        How to File E-Return

·        How to Declare Check post e-Forms and Transit Pass

https://ctd.tn.gov.in/documents/10184/188169/Taxpayer+Guidelines/56390f96-ab31-43b4-bc84-de6f7aacf537

https://ctd.tn.gov.in/documents/10184/21783/TSP+-+TN+Commercial+Taxes+Department%27s+Photos+2/90791451-9b0f-4062-9148-e137efa66325?version=1.0&t=1455207366062