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TAXMANTRA PART 22 Now CST Forms in PDF format from 1st Feb. 2014 in Maharashtra State.

Arjuna (Fictional Character): Krishna, Now Maharashtra Sales Tax Department will give Central Sales Tax Forms like C, F, E Form online. Why a businessman needs to take or give these Forms?

Krishna (Fictional Character): Arjuna, when any businessman purchases goods from outside Maharashtra State i.e. in interstate transactions, for levying less tax or no tax Forms are required to be given to the seller. As "C Form" is given for goods purchase, "F Form" for branch transfers, etc. For e.g. if "A" in Maharashtra purchases goods from "B" in Gujarat then for leaving lower rate i.e. 2% CST "A" has to give C Form to "B". Similarly, a dealer is required to take C Form, for interstate sale made from the other dealer.

Arjuna: Krishna, Please explain what are the changes made in procedure of issuing new Forms from 1st February 2014.

Krishna: Earlier Sales Tax Department used to issue printouts manually to the businessman. But now onwards, Forms will be issued in PDF format i.e. e- file of the Forms will be emailed to the dealer. This file can be sent to others and number of copies can be taken out by dealer, these will be digitally singed by Department Officials. They cannot be tampered or forged; hence it's a full proof system.

Arjuna: From 1st February 2014 what businessman will have to do for this?

Krishna: Arjuna, as per Central Sales Tax Act for applying Form, dealer will have to apply online but there are changes in new application Form. In new Form detailed information is required to be given for e.g. TIN of Supplier, bill number, date of bill, net amount of bill, tax on it and gross amount of bill, quantity of goods and whether the purchase is for manufacturing or resale purpose. This information will be checked online.

Arjuna: Krishna, giving of above detailed information will be troublesome and also increase work load.

Krishna: Arjuna, to get something you need to lose something. Like this, earlier for getting Form one had to wait for a month but now it will be received in two days. Above changes will help dealer, as he will not be required to keep physical copy of Forms and issues of missing, misplacing, etc. of forms will be solved.

Arjuna: Oh Great! Now, declaration Forms will be received in just two days. What will happen if incorrect application is made or if any bill is left to be entered in the application Form?

Krishna: If incorrect application is made or bill is left, then application is required to be canceled on that same day before 6 P.M. and afterwards new application is required to be filed. Dealer may file additional application for the bills left in earlier application. Further two applications can be made in a quarter. Further, Department makes communication with the dealer on the email, mobile number etc. provided in the application form, so it should be mentioned carefully.

Arjuna: Krishna, after filing application how Forms will be received?

Krishna: Arjuna, after filing application concerned officer will verify the same and inform dealer through email about acceptance or rejection of application. If accepted, the dealer needs to download the declaration Form from mahavat.gov.in website or through email. If rejected, application will have to be corrected within 15 days from the date of rejection. Application can be rejected if the dealer has not paid earlier dues to the department.

Arjuna: It seems that Maharashtra Sales Tax Department although late, but started to provide good facilities to dealers.

Krishna: Arjuna, In Gujarat, Andhra Pradesh, etc. states this facility of electronic form was started long back. In that sense Maharashtra state is too late to bring this facility. Sales tax Department has also invited tenders for computer systems and new technology. In case of Mahalaxmi Cotton, department has promised High Court for giving set off and reforms in dealers information system, etc. Department is trying hard to fulfill these promises. Due to computerization, department has succeeded in catching Hawala dealers but it has increased difficulties for law abiders. Computerization in sales tax department will help every buyer and seller to pay accurate tax and save him from penalties. In this era of information, if department also provides required information to its dealer, in real sense tax system will improve. Due to this, time of taxpayers and department officers will be saved and also all work will be done in time.

Dear Karniti Lovers, yours comments please.

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