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AUTOMATION IN SALES TAX RETURNS20th May, 2016

By

M B Abhyankar & Co.

Chartered Accountants

E-mail :- mbabhyankar@gmail.com Contact No. 020-24224721

www.mbabhyankar.org 1

Automation in Process of Filing of Online MVAT & CST Returns from 01.04.2016 onwards

The Maharashtra Sales Tax Department has made substantial changes in its automation processes relating to taxpayer interface, w.e.f. F.Y 2016-17. This is expected to result into significantly more efficiency in the working of the Department, less errors due to minimum human intervention and maximum benefits in relation to time management.

The application is being developed on the SAP platform using the Tax and Revenue Management (TRM) and the- Customer Relationship Management (CRM) functionalities.

The Implementation of SAP based computer systems in the Sales Tax Department will help in providing online access to the Input Tax Ledger and interactions with the department.

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Pursuance to the above, new template of annexures and returns in Form 231, Form 232, Form 233, Form 234, Form 235 and CST Form III (E) have been introduced in place of old annexures J1, J2 and respective old return forms

All Dealers are required to file Sales-Purchase annexures before submission of return. (Form 232 filers, composition dealers with entire turnover under composition are required to file purchase annexure only. They need not file Sales annexure,).

On or before the prescribed date, dealer has to submit return online along with payment of taxes due as per return

Dealers can also make advance payment before online filing of return.

Prescribed due date for filing of return is 21st day of the succeeding month

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SALES TO REGISTERED DEALER

SALES TO UNREGISTERED DEALER/CONSUMER

BRANCH TRANSFER/CONSIGNMENT

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INVOICE

• TAX PAID SEPARATELY

• INCLUSIVE OF TAX

• COMPOSITION

• TAX FREE

• EXEMPTED

• LABOUR CHARGES

• OTHER CHARGES

Various Sales

Transaction Types in an

Invoice

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FORM 231To be used by all VAT dealers other than dealers executing works contract, dealers engaged in leasing

business, composition dealers (including dealers opting for composition only for part of the activity of the business) PSI dealers and notified Oil Companies

• TAX PAID SEPARATELY

• INCLUSIVE OF TAX

• COMPOSITION

• TAX FREE

• EXEMPTED (u/s 41 & 8)

• LABOUR CHARGES

• OTHER CHARGES

POSSIBLE SALES

COMBINATION

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FORM 232To be used by all composition dealers whose entire turnover is under composition

(excluding works contractors opting for composition and dealers opting for composition only for part of the activity of the business)

• TAX PAID SEPARATELY

• INCLUSIVE OF TAX

• COMPOSITION

• TAX FREE

• EXEMPTED

• LABOUR CHARGES

• OTHER CHARGES

POSSIBLE SALES

COMBINATION

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FORM 233To be used by MVAT dealers who are also in the business of executing works

contracts, leasing and dealers opting for composition only for part of the activity of the business

• TAX PAID SEPARATELY

• INCLUSIVE OF TAX

• COMPOSITION

• TAX FREE

• EXEMPTED (u/s 41 & 8)

• LABOUR CHARGES

• OTHER CHARGES

POSSIBLE SALES

COMBINATION

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FORM 234To be used by PSI dealers holding Entitlement Certificate. (Transactions by PSI dealers relating to the business of execution of works contracts, leasing, trading and composition only for part

of the activity of the business to be included in a separate return in Form 233)

• TAX PAID SEPARATELY

• INCLUSIVE OF TAX

• COMPOSITION

• TAX FREE

• EXEMPTED (u/s 8(4))

• LABOUR CHARGES

• OTHER CHARGES

POSSIBLE SALES

COMBINATION

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FORM 235To be used by notified Oil Companies. (Transactions by OIL Companies relating to the business of execution of works contracts, leasing and composition only for part of the

activity of the business to be included in a separate return in Form 233).

• TAX PAID SEPARATELY

• INCLUSIVE OF TAX

• COMPOSITION

• TAX FREE

• EXEMPTED (u/s 41 & 8)

• LABOUR CHARGES

• OTHER CHARGES

POSSIBLE SALES

COMBINATION

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STEPS FOR FILING OF RETURN

Step 1

• Download Annexure Template provided on the MSTD website

Step 2• Copy file and rename by TIN & Period

Step 3• Update Header Worksheet

Step 4 • Prepare Sales and Purchases Annexure

Step 5• Validate annexure and preview return

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STEPS FOR FILING OF RETURN

Step 6• Manual Input in Preview Return

Step 7• Validate and create file for upload

Step 8• Upload text file

Step 9• Verify Draft Return & ITC (Input Tax Credit)

Step 10

• Add back Admissible ITC credits which are reduced/ disallowed on account of Mismatch but not claimed in return and Repeat step 6 onwards

Step 10 • Submit Return with Payment

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STEP 1 :- Download Annexure Template

a) Visit MSTD website www.mahavat.gov.in

b) Go to “Download” link and select “Sales and Purchases Annexure”

c) Download Annexure template on your personal computer (To be done every time for filing of returns – due to change in version every month)

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STEP 2 :- Save as and rename file by TIN & Period

For future reference save file by TIN and Period(File name to be unique or as per dealers requirement)

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STEP 3:- Update Header Worksheet

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STEP 3 :- Update Header Worksheet

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STEP 3 :- Update Header Worksheet

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STEP 3:- Update Header Worksheet

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STEP 3:- Update Header Worksheet

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STEP 3:- Update Header Worksheet

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STEP 3:- Update Header Worksheet

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STEP 3:- Update Header Worksheet

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STEP 4 :- Prepare Sales and Purchases Annexure

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SALES ANNEXURE

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