Filing Return under State Value added Tax (VAT) - Indirect tax laws | Indirect Tax Laws - B Com PDF Download

1. Introduction A tax return is a form which is filed with a government body to declare liability for taxation. Return is required to be filled by the assessee on timely basis giving the entire detail of the income and the tax paid thereon, along with the interest and penalty (if any). Though filling of return is considered as harrowing activity by the assesses but it is mandatory to be filled. Filing of return helps the government to keep check on evasion of tax by the defaulters.

A return is the most basic document of any compliance under any law. You would always see that the preparation and filing of a return is the responsibility of the assessee himself. Even the return is sent by authorised signatory, still for any misstatement or a clerical error penalty etc. are imposed only on the assessee, not others. This is reason why I always read every word stated by me or any of my staff for and on behalf of my client. In this regard I would like to share some of my experiences, knowledge and some rulings on this subject and the basic provision of the law would be taken up on the Haryana Value Added Tax, 2003.

 

2. Basic Value Added Tax is paid by the dealers registered under State VAT and such dealers are also required to file the VAT Return on timely basis. Output VAT is payable on the taxable turnover, calculated according to the provisions respective section under state VAT Act. Registered dealers are also eligible to get the credit of input tax paid on purchases of inputs. All such details are required to be given in return.

As VAT is the state concept and all the states have their own VAT Act, hereby for the sake of convenience I am considering Haryana VAT Act, 2003 (“HVAT Act”). In this article I have thrown light on the provisions related to filling of VAT return under HVAT.

 

3. Payment of Value Added Tax

Tax payable under HVAT Act shall be paid in the manner and at such intervals as given below:-

4. Filing of VAT return

Dealers registered under HVAT Act are liable to file return in the manner as given below:- 

Additional requirements

Additional return to be filled Every dealer of the description specified in column 2 of entry against serial No. 3 in Table above under section 14(1) shall in addition furnish an annual return for the last preceding year in Form VAT-R2 on or before   31st October. The annual return shall be accompanied with:-

(i) a copy of final accounts including balance sheet as at the end of the year, profit and loss cum trading/manufacturing account for the year and

(ii) a statement reconciling the difference, if any, between such accounts and the turnover reported in the annual return verified in prescribed manner.
 

Dealers having tax liability exceeding Rs.1 lacs Every dealer whose aggregate liability to pay tax under Haryana General Sales Tax Act, 1973 and Central Act for the last year or part thereof according to the returns filed by him is equal to or more than Rs. 1,00,000/- or such other sum, shall, in the manner prescribed, pay on or before the fifteenth day of each month the full amount of tax payable by him for the previous month, computed by him in accordance with the provisions of this Act and the rules made thereunder.

However, if he is not able to quantify his tax liability accurately by that time, he shall pay an amount equal to monthly average of his tax liability in the last year (or such shorter period for which he has been liable to pay tax in that year) as tax provisionally, and he shall pay the balance, if any, on or before the 25th day of the month, and the excess, if any, he may adjust with his future tax liability.
 

Dealers having tax liability not exceeding Rs.1 lacs Every dealer on whom section 14(3) does not apply, shall, in the prescribed manner, pay in the month immediately following each quarter, the full amount of tax payable by him for the quarter, computed by him in accordance with the provisions of this Act and the rules made thereunder.
 

Revision of return If a dealer discovers in any return furnished by him, any omission or other error, which he could not have rectified after the exercise of due diligence before furnishing the return, he may at any time before the date prescribed for furnishing of return for the next period by him, furnish a revised return, and if the revised return shows a greater amount of tax to be due than was shown in the original return, it shall be accompanied by a receipt showing payment of the extra amount along with simple interest thereon for the period the amount remained unpaid calculated in accordance with the provisions of section14 (6), in the State Government treasury in such manner, as may be prescribed.
 

Uncompleted return Each return, which is required to be furnished under these rules, shall be incomplete unless accompanied with lists, statements, declarations, certificates and documents mentioned therein or which are required to be filed with the return under these rules. The return shall be signed by

(i) Karta in case of an HUF,

(ii) proprietor in case of a proprietorship concern,

(iii) a partner in case of a partnership firm, or

(iv) a whole time employee authorized by Karta, proprietor or partner, as the case may be, in writing in this   behalf,

(v) head of the department or an officer authorised by him in case of a Government department

(vi) chairman, director, secretary or principal officer in case of a society or a company.

A return which is unsigned or is signed by any other person, shall be treated as no return. An authorized signatory alone shall sign each list and statement accompanying the return. Any list or statement, which is unsigned or is not signed by an authorised signatory, shall be treated as no list or statement.