Finology
Finology

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


Arjuna (Fictional Character):  Krishna, What major changes took place in the Maharashtra Vat Act from 1st April 2014?

Krishna (Fictional Character): Yes Arjuna, the Taxpayers who are registered under Maharashtra VAT Act, while filing returns (Monthly or Quarterly or Half yearly) will have to submit details of TIN number wise purchases and sales. Previously this information was submitted once in the year after completing financial year.    

Arjuna:  What is this new form called and what information is required to be given in this form?

Krishna: Arjuna, this form is called as Form J 1, J2. In this form according to the periodicity of the VAT returns, the details of every transaction during the period of return are required to be given in the following manner:

1. J 1: In this annexure the details of customer wise sales made during the period of return in the form of TIN, Total Sales and VAT will have to be given.

2. J 2:  In this annexure the details of supplier wise purchases made during the period of return in the form of TIN, Total purchases and VAT will have to be given.

Arjuna: Krishna, When and How this information is required to be given to the VAT Department?

Krishna: Listen Arjuna, Taxpayer will have to download form J1 and J2 from the website www.mahavat.gov.in. An excel file will be downloaded in which all the details will have to be filled. Taxpayers should firstly, pay the vat liability within due date and then file J1 and J2 and lastly file the Vat returns.

Arjuna: Krishna what precautions taxpayers should take for this new change?

Krishna: Arjuna from 1st April 2014, businessman should take the details of customer and supplier at the time of transaction itself. He should maintain the same in a separate register or update the details in accounting software, so as to avoid confusion and chaos while filling Form J1 and J2. Similarly the taxpayer should match the details provided in Form J1 and J2 with the information provided in the VAT returns.

Arjuna: Krishna, If taxpayer is registered under Composition scheme then what he should do?

Krishna: Arjuna, taxpayer registered under Composition scheme need to give information in annexure J2 only, i.e. to say they need to provide details of purchases made during the period.

Arjuna: Krishna, what if incorrect information is filed in Form J1 and J2?

Krishna: Arjuna, as returns filed can be revised similarly taxpayers can revise the Form J1 and J2. If taxpayers come across any mistake then he should first revise Form J1 and J2 and thereafter file the revised return.

Arjuna:  What should the Taxpayer learn from the changes made in VAT Act?

Krishna: As per the new amendment the taxpayers are required to keep the information of customers and suppliers from the date of transaction itself. The Taxpayer needs to reconcile his accounts on monthly, Quarterly or Half yearly basis. Due to which correctness and transparency in the accounts will increase and also Hawala and False transactions will reduce, as the Taxpayer need to provide the information related to the purchases and sales to the VAT Department on time to time basis. The Taxpayer should take care while filing returns. If care is not taken then Vat department may issue notices of match, unmatch, short filler. As in life we make good people our Friends and maintain relation with them, similarly Taxpayer should transact with good people so as to avoid problems in future. Also one should inculcate the habit of completing the work in time and   reconciling the accounts on time to time basis, otherwise laziness and procrastination will give them no option other than to regret.


 

Published by

CA Umesh Sharma
(Partner)
Category VAT   Report

7 Likes   58 Shares   15612 Views

Comments


Follow


Popular Articles




Follow taxation Exam20 Book Book Book caclubindia books


CCI Articles

submit article

Stay updated with latest Articles!




update