FILING OF RETURN - FORM – I UNDER TAMIL NADU VALUE ADDED TAX, 2006

[Mr. M. GOVINDARAJAN]

Section 21 of the Tamil Nadu Value Added Tax Act, 2006 (‘Act’ for short) provides that every dealer, registered under this Act, shall file returns, in the prescribed for showing the total and taxable turnover within the prescribed period, in the prescribed manner along with the prescribed documents and proof of payment of tax.   The tax under this section shall become due without notice of demand to the dealer on the last date of the period for filing return as prescribed.

Rule 7(1)(a) of Tamil Nadu Value Added Tax Rules, 2007 (‘Rules’ for short) provides that every registered dealer liable to pay tax under the Act, other than a dealer who opted to pay tax under Section 3(4) or Section 6 or Section 8 including agent of a non resident dealer and casual trader, shall file return for each month in Form – I on or before 20^th of the succeeding month, to the assessing authority in whose jurisdiction his principal place of business or head office is situated.   Such return shall be accompanied by proof of payment of tax.

Rule 7(2) provides that every principal or head office shall include the turnover relating to the goods consigned to the agent and file a return in Form – I for each month on or before 20^th of the succeeding month with the particulars of name and full address of the agent, value of the goods sold or purchased, tax collected on sale and tax paid on purchase by the agent along with proof of payment of tax.

Rule 7(3) provides that every branch or agent of a dealer shall file a return in Form – I on or before the date on which the head office or his principal has to file return, for the preceding month, to the assessing authority under whose jurisdiction he carries on business.

Filling of Form – I return is a huge work.   This return is intended for assessees who are eligible to claim input tax credit on local purchases. The following details are to be filled in Form – I:

• Input tax credit;
• Tax payable;
• Payment details;
• Payment details for output tax paid and claimed refund (only for companies availing incentives as per G.O.);
• Amount of input tax credit excess available;

The return has originally four annexure as detailed below:

• Annexure – I – Details of purchase/receipts during the month;
• Annexure – I –A – Details of inter state purchases/stock transfer inward during the month;
• Annexure – II – Details of sales/transfer value during the month;
• Annexure – III – Details of reversal of input tax credit during the month as the details listed below:
  • Goods used for civil structures under Section 2(11);
  • Goods utilized for self use – Sec. 19(7)(a);
  • Purchase of automobiles and spare parts other than dealer in Automobiles – Section 19(7)(b);
  • Purchase of Air conditioners other than dealer in Air-conditioners – Section 19(7)(c);
  • Goods given as gift, free sample – Section 19(8);
  • Goods lost on theft, loss etc., - Section 19(9)(i);
  • Inputs destroyed in fire or lost – Section 19(9)(ii);
  • Inputs damaged in transit or destroyed before manufacture – Section 19(9)(iii);
  • Unavailed credit on capital goods (time barred) – Section 19(3)(b);
  • Consignment sales without ‘F’ form – Section 19(4)(i) & (ii);
  • Stock transfer without ‘F’ form – Section 19(4)(i) & (ii);
  • Purchases for production of exempted goods (finished) – Section 19(5)(a);
  • Interstate sale without ‘C’ Form – Section 19(5)(c);
  • Purchase return – Section 14(1);
  • ITC availed for finished goods subsequently exempt – Section 19(12);
  • Others (specify);
  • Annexure – IV – Zero Rates Sale

Vide Notification No. SRO/A-34(a-2)/2013, dated 31.10.2013 the Government of Tamil Nadu add Annexure V to the Return – Form – I made with effect from 01.11.2013. In ‘Annexure – V’ the details of closing stock inventory at the end of the month is to be given, if the input tax credit is carried forwarded in a month. The following are the details to be furnished:

• Input tax credit at the end of the previous month;
• Description of goods held as stock at the end of the month;
• Commodity code;
• Value;
• Rate of tax;
• Input tax credit forward at the end of the next month.

The Tamil Nadu Chamber of Commerce and industry has strongly objected to the amendment in Form – I.   Their opinion is that it is an unnecessary burden on dealers and very difficult and cumbersome especially for retailers dealing in many number of commodities to take an inventory at the end of every month before commencing the sales next day morning.   The industry contended that the work of taking closing stock takes at least three days for taking.   It is also impossible to indicate the value of the closing stock.   The industry is of the fear that the dealers may be subjected to unnecessary harassment by the assessing authorities.

Discussions to this article

[shankar narayanan]

Sir

Due to  representations received from various trade & industries, Commissioner of Commercial Taxes has issued certain clarifications with regard to filing of Form I along with Form I vide circular # 12/2013 dated 3.12.203 ; 

1) Annexure-V needs to be filed only in cases where Input Tax Credit (ITC) is carried forwarded.Since the amendment is effective from 1st November 2013, Annexure V shall be filed only in respect of monthly returns for November 2013.  The return in respect of October 2013 need not be filed along with Annexure V. Quantitative details of the stock need not be provided.In certain specific circumstances, ITC would be carried forward without proportionate stock of goods.In such cases, NIL Stock filed by the dealer should be accepted.  we can find the detailed clarification in the above circular issued by the Commissioner. 

[MARIAPPAN GOVINDARAJAN]

Dear Sir,

Still the industries wanted to do away with the Annexure V from the Form I in toto.

Regards,

M. Govindarajan

 

 

[MARIAPPAN GOVINDARAJAN]

Dear Sir,

Still the industries wanted to do away with the Annexure V from the Form I in toto.

Regards,

M. Govindarajan

 

 

[Kumar K]

 Sir,

The given clarification is sufficient for filling column no: 3, 4, 5, 6. What about the column no 2 and 7?

Does the value in column no 2 and 7 remain same for every group of commodities.

Input tax credit can not be derived for every group of commodity separately.

And in column no 5, purchase value of the commodities to be entered, this is also confusing, because usually stock value means selling value (purchase value + profit).

Please clarify my doubts. Thanks in advance.

[Kumar K]

Sir,

The given clarification is sufficient for filling column no: 3, 4, 5, 6. What about the column no 2 and 7?

Does the value in column no 2 and 7 remain same for every group of commodities.

Input tax credit can not be derived for every group of commodity separately.

And in column no 5, purchase value of the commodities to be entered, this is also confusing, because usually stock value means selling value (purchase value + profit).

Please clarify my doubts. Thanks in advance.

[Kumar K]

 Sir,

The given clarification is sufficient for filling column no: 3, 4, 5, 6. What about the column no 2 and 7?

Does the value in column no 2 and 7 remain same for every group of commodities.

Input tax credit can not be derived for every group of commodity separately.

And in column no 5, purchase value of the commodities to be entered, this is also confusing, because usually stock value means selling value (purchase value + profit).

Please clarify my doubts. Thanks in advance.

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