1. INDIRECT TAX COMPLIANCES
CA. Abhay Desai
Managing Partner, M/s Yagnesh Desai & Co.

2. TYPES OF INDIRECT TAXES
VAT/CST
EXCISE
SERVICE TAX
CA. Abhay Desai

3. COMPLIANCES
PAYMENT OF TAX
FILING OF RETURNS
CA. Abhay Desai

4. VAT/CST
Interest/Penalties
Returns
Payment of tax
CA. Abhay Desai

5. INTEREST - PENALTIES
Interest on delayed payment 18% p.a. (Sec. 30(5))
Penalty for non submission of return in time - Penalty can be levied Rs.100/- per day for first 7 days thereafter Rs Rs. 100 per day up to 30 days. Thereafter Rs. 3,000 per month of part of month with a maximum limit of Rs.10,000/- (Sec. 29(5)).
Lump sum Dealer : penalty can be levied up to ceiling of Rs.1000/- only.
Dealer submitting quarterly return: upto Rs.2000/- only.
CA. Abhay Desai

6. RETURNS Frequency of returns Forms of returns Type of returns
Date for filing the returns
CA. Abhay Desai

7. RETURNS (Rule 19) Sr. No. Type of dealer Frequency Forms
Manual/E-fling 1
Lump sum dealer
Quarterly
202, 202A, 202B, 202C
Manual 2
Local Trader
201, 201A, 201B
Half-yearly
201C 3
TP in PY or CY not exceeding 60000 4
TP exceed 60000
Monthly 5
Dealer having certificate of entitlement/deferment
203, 204
CA. Abhay Desai

8. Depends on the business
RETURNS
Sr. No.
Type of dealer
Frequency
Forms
Manual/E-fling 6
Dealer who:
Monthly
201, 201A, 201B
Manual
(i) Imports/Exports
Quarterly
201C
(ii) Unit/Developer in SEZ
(iii) Claiming refund u/s 40
(iv) Remission u/s 41(1) 7
Dealer of Schedule III goods
212, 213 8
NLD
Depends on the business
CA. Abhay Desai

9. Applies to all from (1 to 6 above)
RETURNS
Sr. No.
Type of dealer
Frequency
Forms
Manual/E-fling 7
TT exceed fifty lacs
Applies to all from (1 to 6 above)
E-filing
Makes zero rated sales
Makes imports/exports
Has certificate of entitlement
Developer/Co-developer of SEZ
Unit in SEZ
Registered under CST
Deals in:
(i) Timber
(ii) Ceramic Tiles
(iii) Scrap of Iron & Steel
(iv) Tobacco and tobacco products (excluding Unmanufactured tobacco)
(v) Major Minerals as may be specified by the Commissioner
CA. Abhay Desai

10. DUE DATE OF FILING THE RETURNS
For E –Return
If Tax Payable for the Month is 5,000 or less than Rs.5,000 than within 60 days from the end of the respective Month.
If Tax Payable for the Month is 5,000 or more than Rs.5,000 than within 70 days from the end of the respective Month.
In case of Dealer who are liable for Quarterly E- Filing of Return than within 75 Days from the end of Quarter.
CA. Abhay Desai

11. DUE DATE OF FILING THE RETURNS
For Paper Return
Within 30 Days from the end of the Month / Quarter
Revised Return - If after furnishing a return if any dealer discovers any error, omission , or incorrect statement therein, he may furnish a revised return before the expiry of One Month from the last date prescribed for Original Return.
CA. Abhay Desai

12. ANNUAL RETURN
Every Registered dealer shall furnish Annual Return by way of Self Assessment to the Commercial Tax Officer within whose jurisdiction his chief place of business is situated.
Registered dealer who is co operative society engaged in the manufacture of Sugar or Khandsari shall furnish annual return on or before 31st December after end of year to which return relates [ Form No. 205 & 205A ].
Dealer who are liable for VAT Audit shall furnish Annual return within 9 month from the end of the year to which annual Return relates.[ Form No. 205 & 205A].
Dealer to whom permission to pay Lump sum Tax has been granted U/s. 14, 14A ,14B, 14C and 14D within 3 Months [ Form No. 202 ].
Dealer who holds Incentive of Sales Tax Exemption in [ Form No.203 ] and Sales Tax deferment in [Form No. 204].
Any other dealer will have to file within 3 Month from the end of the Year to which return relates [ Form No. 205 & 205A.]
In case Turnover Exceed Rs. 1 Crore than E- Filing is also mandatory.
CA. Abhay Desai

13. PAYMENT OF TAX
22 days from end of the month/quarter
CA. Abhay Desai

14. PROCESS
CA. Abhay Desai

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18. VERIFICATION OF ITC
CA. Abhay Desai

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21. CA. Abhay Desai

22. EXCISE
INTEREST/PENALTY
RETURNS
PAYMENT OF DUTY
CA. Abhay Desai

23. INTEREST/PENALTIES
Interest for delayed payment under section 11AA – 18%
Tax default beyond 30 days – penalty under rule 8 – daily clearance on payment of duty in cash, plus prohibition of using cenvat credit, till dues are paid up.
Penalty for non-filing of returns: Upto Rs. 10,000 (Rule 27)
No revision possible
CA. Abhay Desai

24. PAYMENT OF DUTY
SSI Units: 5th of succeeding quarter/6th in case of e-payment
Other: 5th of succeeding month/6th in case of e-payment
For March: 31st March
E-payment mandatory if duty liability exceed Rs. 1 lac in PY.
CA. Abhay Desai

25. Time limit for filing return
RETURNS
Form of Return
Description
Who is required to file
Time limit for filing return
ER-1 [Rule 12(1) of Central Excise Rules]
Monthly Return by large units
Manufacturers not eligible for SSI concession
10th of following month
ER-2 [Rule 12(1) of Central Excise Rules]
Return by EOU
EOU units
ER-3 [Proviso to Rule 12(1) of Central Excise Rules]
Quarterly Return by SSI
Assessees availing SSI concession
10th of next month of the quarter
ER-4 [rule 12(2) of Central Excise Rules]
Annual Financial Information Statement
Assessees paying duty of Rs. one crore or more per annum through PLA or Cenvat or both together.
Annually by 30th November of succeeding year
CA. Abhay Desai

26. Time limit for filing return
RETURNS
Form of Return
Description
Who is required to file
Time limit for filing return
ER-5 [Rule 9A(1) and 9A(2) of Cenvat Credit Rules]
Information relating to Principal Inputs
Assessees paying duty of Rs. one crore or more per annum (either through PLA or Cenvat or both together) and manufacturing goods under specified tariff headings
Annually, by 30th April for the current year .
ER-6 [Rule 9A(3) of Cenvat Credit Rules]
Monthly return of receipt and consumption of each of Principal Inputs
Assessees required to submit ER-5 return
10th of following month
ER-7 [Rule 12(2A) of Central Excise Rules]
Annual Installed Capacity Statement
All assessees, except manufacturers of biris and matches without aid of power and, reinforced cement concrete pipes
Annually, by 30th April for the previous year
ER-8 [Sixth proviso to Rule 12(1) of CE Rules]
Quarterly return
Assessees paying 1%/2% excise duty and not manufacturing any other goods
Quarterly within 10 days after close of quarter
CA. Abhay Desai

27. PROCESS
CA. Abhay Desai

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35. SERVICE TAX INTEREST/PENALTIES RETURNS/DUE DATE PAYMENT OF TAX
CA. Abhay Desai

36. INTEREST/PENALTIES
Interest: 18% p.a. (Reduced by 3% if value of taxable service less than Rs. 60 lakhs)
Penalty for late payment of tax: Rs. 100/day or 1% per month, whichever is higher (Maximum: 50% of tax)
Penalty can be waived u/s 80
Fees for late filing: First 15 days: Rs. 500; days: Rs. 1000; 31 days or more: Rs /day (max. Rs. 20,000)
CA. Abhay Desai

37. RETURNS Form ST-3 To be filed on half-yearly basis
Due date: 25th of month following the half-year
All assesses to mandatorily file e-returns
Revised return: 90 days from original return
CA. Abhay Desai

38. PAYMENT OF TAX
Individuals/Partnership firms: 5th day of succeeding quarter/6th of paid electronically
Others: 5th day of succeeding month/6th of paid electronically
Due date for March: 31st March
E-payment mandatory if total payment exceed Rs. 1,00,000 (including CENVAT)
CA. Abhay Desai

39. BUDGET CHANGES
W.e.f every assessee has to make e-payment of excise duty. Assistant Commissioner / Deputy Commissioner of Central Excise shall have the power to allow the assessee to deposit tax by mode other than internet banking vide Notification No. 19/2014–Central Excise (N.T.) dt. July 11, 2014.
Rule 8(3A) has been substituted to provide that in case of default in payment of Excise Duty, the assessee must suo motu pay a penalty of 1% per month on the amount of Excise Duty unpaid for each month or part thereof. This change will take effect from the date of publication of the amending Rules in the Official Gazette.
CA. Abhay Desai

40. Beyond 6 months upto 1 year
BUDGET CHANGES
Slab rate system for interest is proposed w.e.f
Period of Delay
Interest
Upto 6 months
18%
Beyond 6 months upto 1 year
24%
Beyond 1 year
30%
CA. Abhay Desai

41. REVERSE CHANGE MECHANISM
Currently under reverse charge mechanism, service tax has to be paid at the time of making the payment to service provider. It is proposed that w.e.f service receiver will have to make payment either on the date of payment or the day after 3 months from the date of issue of invoice, whichever is earlier (First proviso to Rule 7 of Point of Taxation Rules).
CA. Abhay Desai

42. OFFICES : Vadodara, Ahmedabad & New-Delhi
M/s Yagnesh desai & Co. 819, Siddharth complex, Beside express hotel, Alkapuri, Vadodara – M) L)
OFFICES : Vadodara, Ahmedabad & New-Delhi
CA. Abhay Desai