Whether CST Return to file ? if OMS Sale of Retailer is NIL

Mahavat 13748 views 7 replies

Sanjay Agarwal

MANAGER

165 Points Joined March 2009

Our Retailer has MVAT and CST Registration. The Retailer has OMS Purchase against C-Form.

The Sales are purely within Maharashtra. OMS Sales are=NIL.

We have been filing MVAT Quarterly Return regularly. But we did not file CST Return due to NIL OMS Sales.

However, our MVAT Auditor insist that since we are holding CST Registration and having OMS Purchase against C-Form, we have to file NIL CST Return.

Also, he says that in MVAT Audit Report = Form 704, Schedule VI= relating Computation of tax laibility under CST is applicable and to be filled.

Dear Experts, kindly give adivce.

Replies (7)

Jinesh Shah

freelancing industry

105 Points Joined September 2010

Yes. the position taken by your VAT Auditor is absolutely correct. Since you have a CST registration no. you should be submitting the E-CST returns even if your OMS sales are NIL.

jinita

Learner

113 Points Joined November 2009

IT IS NOT COMPULSORY UNDER MVAT ACT BUT YOU MAY FILE AS PREVENTION IS BETTER THAN CURE.

In the Trade Circular No 52T of 2007 dated 31-7-2007, it had been clarified that where there are no inter state sales in any return period, no return is required to be filed under the CST Act, 1956, provided the return filed under the MVAT Act, 2002 for the same period shows NIL turnover of inter state sales.

When a dealer has OMS purchase against Form C. Then in case of non-submission of Form C, Seller will face the sale tax liab and subsequent he may raise that liab from OMS purchaser. In eye of law When OMS purchaser file the return never mention the CST turn-over even incase of default ,

hence in my opinion OMs purchaser is not required to file Return.

C.A. Sandeep Wawhal

CA PGDFM BCom

1831 Points Joined June 2010

Yes. If you have obtain CST Registration No. then you have to file CST return whatever it "NIL"or not.

S L DESHPANDE

prop

21 Points Joined July 2010

Originally posted by : Sanjay Agarwal

Our Retailer has MVAT and CST Registration. The Retailer has OMS Purchase against C-Form.

The Sales are purely within Maharashtra. OMS Sales are=NIL.

We have been filing MVAT Quarterly Return regularly. But we did not file CST Return due to NIL OMS Sales.

However, our MVAT Auditor insist that since we are holding CST Registration and having OMS Purchase against C-Form, we have to file NIL CST Return.

Also, he says that in MVAT Audit Report = Form 704, Schedule VI= relating Computation of tax laibility under CST is applicable and to be filled.

Dear Experts, kindly give adivce.

dear sir i have already received penalty of rs 10000 for same case

not to file cst returns...

how i can solve it

r n bhawar

PARTHA P CHATTOPADHYAY

EXPERT

29 Points Joined October 2009

Yes. If you have obtain CST Registration No. then you have to file CST return whatever it "NIL"or not.

AJAY BAGADE

Artical Assistant

21 Points Joined March 2015

Trade Circular No. 20 T of 2014 Dated 25th November, 2014)

in case there are

no interState sales in any return period , no return was required to be filed under the Central Sales Tax Act, 1956(CST Act) provided that the Maharashtra Value Added Tax Act, 2002 (MVAT Act) return for the same period shows

'NIL' turnover of inter-State sales