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Changes in Rajasthan VAT at a glance - 2016-17

PAWAN KUMAR KEDIA 
on 11 March 2016

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Changes in requirements of VAT-47A/ VAT -47A required:

• Non-ferrous metals, alloys and wires thereof substituted in place of Copper in all its forms including wires.

• Tobacco and Tobacco products, cigarette, pan masala, & churi replaced for Pan Masala, Gutkha and Churi

• All kinds of plastics and plastic goods except PVC granules when imported by manufacturer of the State for being used as raw material for production of plastic goods substituted for Plastic goods, PVC granules except when used as raw material for production of plastic goods.

• Rice deleted from this list, hence no form required.

• Cotton seed added

• Readymade garments and semi stitched garments added

VAT-49A

• Now in case of inter-state sale VAT49A is not required

o for Jeera ; and
o for Gram(Chana) and its Dal

• No change for items dispatched for branch transfer, depot transfer, stock transfer 

Entry Tax (with immediate effect)
Levied

• All kinds of yarns other than cotton and silk yarn in hank, earlier it was only on Polyester Filament Yarn (3)

• CDM and ATVM also added with ATM (25)

Deleted

• ACSR conductors (6)
• All kinds of telephone and parts thereof (8)
• Insulators (14)
• Photocopiers (17)
• Stay wire (18)
• Television sets, washing machine, microwave oven (20)
• Tin Containers (33)
• Areated water (41)
• Mineral water and water sold in sealed containers (43)

Entry Tax Exemption Extended / entries deleted from exemption consequent to deletion of entries in tax imposition notification: with immediate effect

• Exemption extended to All kinds of yarn, other than cotton & silk yarn in hank. (2)
• Exemption extended to CDM & ATVM along with ATM (24)
• Exemption withdrawn on following items as no tax is there any more-

o ACSR conductors (5), All kinds of Telephone and parts thereof (7), Insulators (13), Photocopiers (16), Stay wires (17), Tin Containers (31), Areated water (39) and Mineral water and water sold in sealed containers (41)

Builders & Developers

• Now have to opt for lump sum scheme project wise within 30 days of commencement of project

• Once opted cannot exit from the scheme

• Separate application for each project

• Builders who has already taken Option prior to 01-04-16 may opt out till 30.04.16, otherwise the certificate already issued shall remain in force for all the projects already undertaken by him (R.-17A) 

• The builders/ Developer covered u/s 5 (lump sum scheme) makes any payment to unregistered person shall deduct TDS of an amount as may be notified. (R-22A).

• Builders and developers freed from deducting TDS on payment to registered sub-contractors.

Contractors

• EC Notification-

o Template of WT-2 changed to display description of work order, WNo., Date of WO

o If AO is not satisfied with the category of Works Contract, he shall issue notice to the applicant of EC to revise the application.

o If the applicant revise the application the AO will issue the EC accordingly

o If EC application is not revised and the AO is satisfied with the category then will issue EC accordingly

o If EC Application is not revised and the AO is not satisfied will reject the EC by passing appropriate order.

• The contractors covered u/s 8(3) shall give details of purchase in VAT-10 in the like manner it was required in VAT-11

• Now the facility has been given to the contractors to furnish details of sale of any left over goods in respect of works covered by EC inVAT-11 itself and will not be required to furnish VAT-10 and thus they have been saved from penalty for not furnishing vat 10 in such cases, as earlier they were liable.

TDS

• TDS rate in case of payment to registered contractor reduced from 6% to 3% . But TDS of unregistered contractor shall continue to be 7%.

• Now, time for issuing NO TDS certificate extended from 15 days to 30 days from the date of application. [R-40(7)]

Returns (R-19)

• The contractor covered by section 8(3) and who files return in VAT-11 sells any leftover goods shall also furnish details of sale in VAT-8A within 60 days of the quarter in which sale is made. Earlier the contractor had to file VAT-10 for such transaction and would attract penalty for earlier quarters, but now relief has been given to him.

• Dealer opting out from section 3(2) or Section 5 before the end of year, shall file VAT-10 from the quarter in which he opted out and shall submit the details of turnover from beginning till opting out in VAT-10 and he shall not be required to file VAT-10 for earlier quarters.

Declaration forms (R-21)

• If a dealer having generated a declaration form finds any errors and wants to rectify the same he may make an application to his AO within 6 months, but the DC may allow the dealer to file such application upto period of one year from the date of generation or upto 30.09.16 which ever is later.

Audit of Dealer (R-47]

• The dealer shall be given an online intimation regarding audit of his business.

• The dealer will be required to choose online the place of audit either at his business place or office of auditor, within 15 days to have the audit done

• If the dealer does not choose any option then the audit will be done at his business place.

General changes

• Unified refund application

• Unified appeal form

• Form VAT-69A inserted for application by builders and developer for opting for lump sum payment project wise

• Time period for filing of application under Amnesty Scheme extended till 31st March 2016 from 15th March 2016

• The Amnesty Scheme extended to other taxes also.

• The facility of tax payment shall be extended to 35 banks

• The facility of Mobile App will be extended for other facilities like, dealer search, payment, PAN, forms and Certificates verification, to check status of all applications filed on Any Time Any where basis.

• Proposed to give suggestion and redress problems on departmental web site or on mobile app

• Online refund facility extended to other taxes also

• Waiver of late fee is proposed

• For adjustment or refund of wrong deposit of challan or wrong period mentioned in challan , authorized authority shall give direction to the AO

• At present online refunds were given through DC but now refunds shall be given directly by Central Refund Officer

• At present the contractor was required to collect VAT-41 and furnish the same to his AO but now by filing of online 40E by the awarder, the VAT-41 will automatically appear in dealers profile

• Dealers given choice to opt place of audit either his business place or office of auditor.

• Generating sets included in the definition of Capital Goods

• E-transit pass for goods transported through the state of Raj is proposed w.e.f. 01.08.16 and it can be generated on Mobile App.

Casual Commodity

• Used motor vehicle inserted
• Casual dealers will pay tax through e-Grass w.e.f. 01.04.16 Schedule I Exempted Goods
• Added

o Ghunghru (22),
o Unbranded tost and unbranded rusk (34)
o Khakhra (37)
o Articles of marbles upto Rs. 1000/- per item from Rs. 300/- per item
o The condition of ISI mark removed from Kerosene Stove and it also extended to Kerosene lamp, hurricane lantern, kerosene pressure stove, parts and accessories thereof (92). Earlier these items were taxable @ 5.5% in Entry No. 74 Sch-IV. 

o Solar energy tourch also added with solar energy equipments (107)
o Bio-mass stove (149)
o Lai (150)
o Pattu (151)
o Camphor (152)
o Saw Dust (153)
o Sugarcan (154)
o Sattu (155)
o Sewing needle other than needle used in sewing machine (156)
o Earthen roofing tile (Kelu) (157)
o Animal shoe and its nails (158)
o Rubber play balls and balloon (159)
o Hand Pump, its parts and accessories (160)
o Safty matches (161)
o Gangajal and Ganga Arghya packed in sealed containers, not meant for drinking purposes

Deleted

o Guwar Refined Daal or split, Guwar Gum powder deleted (77)
o All types of handmade carpets (120)

Schedule II
o Rajasthan Prisons Department added

Schedule IV

o All kind of bricks except specified in Schedule –I taxable @ 5.5% and asphaltic roofing refractory monolithic (4)

o Only sewing thread kept in this entry (6), cotton and silk yarn in hank already exempt in entry No. (9) Sch- I, All other type of yarns and waste thereof other than cotton and silk yarn in hank shifted in Sch-VI @ 2%. Earlier 2% in Sch-VI was only in respect of Polyester Filament Yarn.

o Bio-fertilizers removed from entry (21)- but it is not inserted either in Sch-I or Sch-V, or Sch-VI

o Redesigned to cover all disposal items made of paper or Thermocol. Earlier it was item specific (41)

o (57) deleted , hand pumps and spare parts exempted and shifted to Sch-I

o (74) Kerosene lamp/ hurricane lantern, kerosene wick stove, kerosene pressure stove and accessories and parts thereof shifted in E.No. 92, Sch-I.

o (78) Deleted. Lai shifted in E.No. 150 of Sch-I

o (86) Dental implants also included in this entry. Earlier it was taxable @ 14.5%

o (98) Deleted. Pattu exempted and shifted in E.No. 151 of Sch-I.

o (107) the expression “pickle” changed to “unbranded pickle whether sold in sealed containers or otherwise. Meaning thereby only unbranded pickle is taxable @ 5.5% and branded pickle taxable @ 14.5% as it is inserted in Sr. No. 16 of Sch-V.

o (112) Semi stitched readymade garments also inserted with readymade garments

o (117) deleted. Safty matches exempted and shifted in E.No. 161 of Sch-I

o (118) deleted. Sattu exempted and shifted in E.No. 155 of Sch-I CA Pawan Kedia

o (159) redesigned. Earlier it was item specific with limit upto Rs. 200/- per item only covered in this entry. But now All plastic goods including plastic grills and unbranded plastic moulded furniture will be taxable @ 5.5% except the plastic goods specified in any other schedule.

o (198) the word Sattu mentioned after Panjiri deleted.

o (223) inserted- Measuring taps and vernier calipers

o (224) Inserted. Electric Switch Gear

o (225) Inserted. Thermal massager, fat losing belts, body vibrating items, accupressure machines, morning walker. Health fitness and gymnastics equipments are already there in tis entry.

o (226) Inserted. All type of Carpets

o (227) Inserted . Guwar Gum and Guwar Powder. Earlier it was exempt.

o (228) Inserted. Processed Betel Leaf (Paan)

Schedule IV- Part- A

o (10) Substituted. Data storage and recording devices including Compact Disc (CD), Digital Versatile Disc DVD), Pen Drive, SD card, Memory Card etc.

Schedule IV Part- B

o (180) Deleted Camphor. Exempted and shifted in E.No. 152 of Sch-I.
o (264) Deleted Saw Dust. Exempted and shifted in E.No. 153 of Sch.- I.
o (276) Deleted. Sugarcane exempted and shifted inE.No. 154 of Sch-I

Schedule V

o (16)(xviii) Inserted Branded Pickle. Earlier it was taxable @ 5.5% in E.No. 107 of Sch-IV

o (27) now branded plastic moulded furnitures only be taxable @ 14.5% and unbranded will fall in E.No. 159 of Sch-IV and would be taxable @ 5.5%

o (33) Deleted and the items such as Health fitness and gymnastics equipmens, fat losing belts, body vibrating items, acupresue machine, morning walker shifted in E.No. 225 of Sch-IV and would be taxable @ 5.5%.

o (34) carry bags and other items used for the convenience of the customers at the time of sale deleted from this entry and only insulated wares kept.

o (41)(i) substituted. The item vernier Calipers, Measuring Taps excluded from this entry and shifted in

E.No. 223 of Sch-IV.

o (52) substituted. Plastic carry Bags and disposal items made of plastic would be taxable @ 14.5% but unbranded plastic goods even if more than Rs. 200/- would be taxable @ 5.5% in E.No. 159 of Sch-IV.

Schedule VI

o (8) Heavy commercial vehicles having gross vehicle weight above 12000 kilograms shifted, from 15% to 13%, in new entry NO. 23

o (11) Rate of tax on aerated water increased to 20% from 15%.

o (16) Now all type of yarns and waste thereof will be taxable @ 2%, instead of Polyester filament Yarn, other than cotton and silk yarn in hank which are exempt under E.No. 9 of Sch-I.

o (19) Parts and accessories of Tablet, I-pads, e-book reader, Phablet, slate etc also included in this entry of 8%. CA Pawan Kedia

o (23) Heavy commercial vehicle having gross vehicle weight above 12000KG separated from E.No. 8 and would be taxable @ 13% instead of 15%.

Tax on weight basis
o The notification regarding fixing of tax on weight basis on cigarettes amended.

Amendment in Act

1. [Sec. 13(3)] - If a dealer wants to change his place of business from outside the territorial jurisdiction of the present AO, he shall have to seek permission for change of AO. The prescribed authority shall take decision within 30 days (earlier it was 60 days) otherwise the permission for change of AO shall be deemed to have been given. [S-13(3)]. If no permission is sought for change of AO, then the present AO will continue.

2. [Sec-24(5)- The period for completion of assessment for the year 13-14 extended upto 31.07.16.

3. [Sec-33(3)]- Rectification Application-

a. disposal of rectification application within 6 month (earlier it was one year) , otherwise it shall be deemed to have been accepted.

b. Application filed prior to 01-04-16 shall be disposed off till 30.09.16 or within one year from the date of application which ever is earlier.

4. [Sec-51A]- Waiver of late fee: Now Govt taken powers to waive late fee also along with interest and penalty. But no road map has been given to waive the late fee.

5. [Sec.53(3A)]- Refund of wrong deposit – New provision added to grant refund in case of wrong or excess deposit in the manner to be prescribed.

Amendment in Rules

1. Rule 17A- Builders & Developers

• Sub-Rule (1A) - Project wise option allowed

• Sub- Rule (8A) - once the option for lumpsum is taken, cannot opt out

- However, for option already taken prior to 01.04.16 the dealer has option to opt out till 30.04.16 otherwise the certificate already issued for payment of tax shall continue to remain in force in respect of all projects already undertaken by him.

2. Rule 19- Filing of Return

• Sub-Rule (4) - Earlier the Works contractor had to file VAT-10 in case he would sale any scrap or left over goods in respect of works covered under EC and had to pay penalty for earlier returns. But now they are not required to file vat-10 because of this reason but will continue to file VAT-11 and shall furnish the details of sale of left over goods in VAT-8A within 60 days of the end of quarter in which left over goods was sold.

• Sub-Rule (11) - where a dealer opts out of section 3(2) or section 5 before the end of the year, he shall file VAT-10 from the quarter in which he switched over. No returns will be required for earlier quarters.

3. Rule 21- Declaration Forms - where after generation of any declaration form any error is found the dealer can make an application for correction in that within 6 month but the DC may extend the time for filing such application upto one year or upto 30.09.16, which ever is later.

4. Rule -22A(7)- Builders/Developers / TDS - W.e.f. 08.01.16 sub-rule (7) was inserted and the builder or developer covered u/s 5 was required to deduct TDS on payments made to any person, now TDS is required only if payment is made to unregistered person.

- in the sub-rule as inserted w.e.f. 08.01.16 it was mentioned that the turnover of works contract awarded by him shall be deducted from his turnover and now this line has been deleted , what will be its implication has to be checked.

5. Rule 27(6)- Refund process eased - Now the AO will directly send the VAT-23 to the Central Refund Officer instead of DC

6. Rule 38 – Issue of Invoice - the word signature replaced with the word “signature or digital signature”.

7. Rule 40 TDS -

o Sub-Rule (6) - Now the awarder is not required to issue VAT- 41

o Sub-Rule (7) - The time limit for issue of No TDS certificate extended from 15 days to 30 days

o Sub-rule (8) - The requirement of awarder to furnish particulars of works contact in VAT-40E electronically and penalty regarding thereto shifted from this sub-rule to sub-rule 8A.

o Sub-rule (8A) - Awarder shall furnish statement in VAT-40E within 30 days. If not furnished shall pay penalty.

o Sub-rule (8B) - If there is any error in VAT-40E, revised 40E can be filed within 3 months from the close of the relevant year.

o Sub-rule (11) - Now VAT-41 shall be generated by the department and shall be sent to the contractor as well as to the AO.

o Sub-rule (12), (13), (14), (15) & (16) deleted - The provisions relating to issue of VAT-41 removed.

8. Rule 47 - Audit of dealer - Now dealer will have option to choose where he wants to get audit of his business, either at his business place or at the office of auditor.

- he shall inform the department of his option online within 15 days of intimation received from deptt.
- if he does not intimate the department of his option then the audit will be conducted at his business place.

9. Amendment in Forms

• VAT-03 RC Certificate - the expression opted u/s 5(1) removed
• VAT-6B Application for opting for 3(2) if not opted at the time of RC
• VAT-10 Quarterly Return form - amended and incorporated columns for furnishing details of purchase for works contractors covered under EC in line with VAT-11 and works contractor who sold left over goods.
• VAT-11 Return Form - amended to incorporate details of sale of left
over goods by contractor and to make it compatible to builders and developers.
• VAT-20 Unified Refund Application for all taxes
• VAT-20A Early Refund Application - Bank details incorporated
• VAT-27 Unified Appeal Form substituted
• VAT-40 Application for Awarder Identification Certificate changed
• VAT40C Application for No TDS to contractor substituted
• VAT40D Application for No TDS on particular work order
• VAT40E Statement of works contract and tax deposited by awarder substituted CA Pawan Kedia
• VAT-41 TDS certificate substituted
• VAT-42 deleted- details of TDS and deposits
• VAT-69A New form added for application for lump sum tax by Builders/Developers
• VAT-70 Substituted – Certificate for payment of tax in lump sum


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