Sunday, April 20, 2014

ISSUE OF TINS TO VAT DEALERS IN THE WAKE OF AP STATE RE ORGANISATION


HELP DOCUMENT FOR DEALERS

In the wake of re-organization of the state of Andhra Pradesh, new TINS with appropriate state codes have to be issued to all VAT dealers. The respective state codes are decided by the Government of India and will be made known to all soon.

To facilitate the process of issuing TINs to dealers, an online form has been designed to seek the dealer’s option for continuing Registration in the state(s) of their choice. This online option form is available in the dealer login and will pop up once a dealer logs in to file his return/ take statutory forms etc.

The Department advises you to fill the online option form at the earliest.

Using the online option Form
  • The option form is enabled in the dealer login
  • It will pop up once a dealer logs in to file his return/ take statutory forms or transact on the portal
  • Dealer has to choose relevant option depending on the scenario i.e.  can choose to continue only in the Residuary State of AP, can choose to continue only in Telangana, can choose to have Registration in both the states, can choose to shift entire Registration from one state to another.
  • Please see power point presentation at the following link for detailed steps for each scenario.
  • Once the dealer clicks on “submit” button, he/she cannot go back and edit the data. So the dealers are requested to exercise due caution while filling the form and submitting the data.
  • Once a dealer submits an option form, he/she can print an acknowledgement and file it for record.
CST Registration
  • If a dealer has CST Registration, the CST registration will continue to be valid and his CST registration data holds good. However, the dealer is requested to collect CST registration certificate from the concerned Registering authority, on /after 02-June-2014.( Because TIN will change)
  • If a dealer does not have CST Registration and is opting for Registration in both the states of Telangana and Residuary State of Andhra as a result of State bifurcation, he will be given an online option to give CST commodity details. The dealer is requested to collect the new CST Registration Certificate along with VAT RC from their Registering Authority
Generation of TINs
  • Once all option forms from dealers are received, TINS will be generated as a batch process. The TIN generated with the changed state code will be notified well in advance to the dealer online or through e-mail as per the timelines given below.
  • The  TIN is the same for both VAT & CST
Issue of Registration Certificate
  • VAT Registration Certificates will be issued by the concerned Registration Authority on/after 02- June-2014. The dealers are requested to collect the RCS from their respective Circle Offices.
Timelines
  • Filing of online option form : By 30-April-2014
  • Generation of TINs                :By 08-May-2014
  • Issue of RCs by Department : On/after 02-June-2014
Helpdesk
  • For any clarification, query regarding the Issue of TINs, please write to  ctd_helpdesk@apct.gov.in or vatis_helpdesk2@apct.gov.in. We will be glad to assist you!

DEMO on ONLINE OPTION FORM FOR ISSUE OF TINs ( In view of AP State Reorganization)

Scenario 1

For dealers of the Residuary State of Andhra Pradesh with no branches in Telangana, seeking a Registration only in the Residuary State of Andhra Pradesh.



Scenario2

For dealers of Telangana with no branches in the Residuary State of Andhra , seeking a Registration only in the State of Telangana.




Scenario 3
For dealers seeking registration in both the states i.e.Telangana and Residuary State of AP






Scenario 3 (a)

For dealers seeking registration in both the states i.e. Telangana and Residuary State of AP and also opting for CST registration.





Scenario 4

Dealer seeking to shift entire Registration from one state to another



FREQUENTLY ASKED QUESTIONS - A.P. REORGANISATION

When do you begin the process of giving new TIN Numbers
By giving prior guidelines to the dealers, they will be given an option from 15/04/2014 of continuing their registration in the State of their choice.

What will be the VAT tax rates in Telangana as various states tax rates are different
As of now, the existing provisions of the APVAT Act, 2005 will apply to both States unitl further change, as per Section 100 A.P. Reorganisation Act, 2014.

To issue C-Forms for 2013-14, what maximum time is available to download
The present guidelines for issuing C Forms will continue in future also.  There is no change inthis process as to issue or time limits.

Is it possible, if any enhanced purchasing power of Andhra Government to give selling opportunity to Telangana Govt.
Question is irrelevant as of now, as dealers' selling ability depends on dealers strength / weakness (SWOT analysis)

Waybill is Mandatory. Does it mean sales effected without issue of waybill are null and void
If goods under transport are not accompanied by a valid way bill, such transport of goods is liable for penal action, including colleciton of tax.

Reduced the limit of obtaining No. of waybills through CDSC
Limit for obtaining way bills could have reduced in any of the following contingencies:
  1. Non filing of returns,
  2. Nonpayment of admitted taxes and
  3. Non uploading of previously obtained waybill utilisation.
No option available for obtaining Form -C on commodities not added in RC (for industries having 'N' number of commodities, so cant be added all)
For obtainting "C" Forms, the said commodities intended to be purchased, shall have been got included in the CST Certificate of Registration - may contact the Registering Authority.

If I had already made small VAT purchases without advance eWaybill. Will I have to pay penality or will my input credit will be affected
If the purchases from outside the State and their transport without "Advance Waybills" were not checked at checkposts, the requirement is account for them in books of accounts of the purchasing dealer.  For violation of statutory provisions, penalty can be levied.

After the State gets bifurcated, whether we need to continue the serial no(Invoices) or fresh serial we need to start
Depending on which State, you have your VAT registration, your new TIN will be given.  Hence a new series of invoices shall be issues with a new TIN.

We raise invoice from Hyd.  Delivery at Vijayawada in May month.  If the dealer reject the material in July.  How to give the treatment in our books shall we avail input in our books.  Shall we avail input on rejected goods from telangana state
Treatment of goods rejected are to be handled by filing revised VAT 213 returns.  Anyway, specific instances will be addressed to the assesing authority with all documentary proof enclosed.

When GST will be implemented. How the input tax credit will be refunded.
The Government of India and the Empowered Committee of State Finance Ministers have not yet taken any decision as to the modalities of GST and its implementation.

How about the reimbursement of Sales Tax Under IIPP 2010-2015 or 2005-2010 (Expn Units)
Reimbursement of VAT paid will be made by Industries Department.  Hence, dealers may be advised to approach the Industries Department for change of TIN in the Final Eligibility Certificate.

How about the uploads and downloads of C forms F Forms and other forms of the state gets bifurcated?
The existing procedure will continue without any change in formats except new TINs, even after State Bifurcation.

We have availed differment and still we have to pay the differment for another 10 years.   If we want to close our unit in telangana and open 
Premature closure of unit in Telangana (which is a violation of conditions of Final Eligibility Certificate) may dis-entitle the dealer to avial Deferment and may lead to cancellation of the Final Eligibility Certificate by the Industries Department and demand for payment of deferred amount by the Commercial Taxes Department.

Present TIN is with Hyderabad address, When this TIN is alloted to AP, How the change in address will happen (any application requirement exist)
What happen to physical stock of waybills on 2nd June
Every dealer in the State will be given an option Form on or after 15/04/2014 in which he wants to have his registration.  Detaile guidelines will be issued in this regard shortly.

VAT dealer in Telangana with HO in Mumbai opens a branch in AP. Request you to clarify - Whether again, Direct PAN Proof of address of non resident directions.
In the State of A.P., after bifurcation, a new TIN is to be obtained from the concerned Registering Authority, by filing fresh Form VAT 100 with all address / other proof.

Since Hyderabad is Common Capital Please allow for some period Hyderabad Dealers/industries to operate two tin numbers - AP and Telangana at Hyderabad address
On or after 02/06/2014 (appointed day) any sales from the State of Telangana to any dealer / consumer in the State of Andhra Pradesh (vice - versa) will be treated as interstate sales and liable tobe dealt under CST Act; and with ITC under VAT Act.

1. Whether the industries is offered under AP department will continue to both the states
2. When the VAT Act of Telangana be introduced
3. Whether AP VAT act will continue for State
Industrial Incentives are location of industry specific.  So, if the industrial unit is located in Telangana, then Telangana State will allow such industrial incentive if Final Eligibility Certificate is issued.  If the industry is in Andhra Pradesh, then AP State will extend such incentives.  Both States cannot give on the same location of industry. 

1.Is there any entry Tax on  transactions between the proposed two states.
2.Hyderabad being a common capital,the transaction from /to the two states.How the transactions are treated?VAT (or)CST?
If the Goods are falling under A.P. Entry of Motor Vehicles into Local Areas Act, 1996; then Entry tax is leviable.  Sales between a dealer in Telangana and a dealer in A.P (vice - versa) will be treated as interstate movement of goods and CST Act will apply, but not VAT Act.

Local sales way bills should be exempted .Now a days we are facing problem enroute for not having waybills
All sales, local or otherwise, require carrying waybills, unless the goods as such are exempt from tax.

We are having registered  TIN in Hyderabad and currently we are having suppose ITC of ₹ 3,00,000/-.Then this credit amount will be refunded or carried forward to the new TIN in Telangana
At the end of every year, during the monthlry return for March, the dealer having excess ITC shall have to exercise an option - whether to claim refund (or) to carry forward ITC.  Depending upon such claim, either be refunded (or) allowed to carry forward in Telangana State.

What about profession Tax to be paid for 2014-2015 i.e;from 2nd June hyderabad will be in Telangana
If the Profession Tax is already paid on or before 01/06/2014, thenit goes to the united State of Andhra Pradesh; if paid on or after 02/06/2014, then it shall go the State of Telangana.

Depute the D.C/A.C/C.T.O to our association to give training or explanation to the member like VAT instructed in the year April 2005
Let the concerned Association make a specific request to the Commissioner of Commercial Taxes to take further action.

Suppose we wre intersted to open another unit in Andhra is it necessary to obtain another TIN in A.P
If you do not have registration in Andhra and you intend to do business in Andhra Pradesh, you will have to obtain VAT registration in the State of Andhra.  Detailed guidelines will be issued in this regard soon.

APVAT &TGVAT-Both will have same sections &rules
As per A.P. Reorganisation Act, 2014 (Sec.100), same statutory provisions will continue in both the States.

1.please  issue new TIN by 15th May for smooth implementation.
2.Special drive to clear refuds to required before biforcation
Steps are being taken to issue new TINs at the earliest (but effective from 02/06/2014).  Delayed cases of refund may be brought to the notice of the Deputy Commissioner (CT), concerned or Commissioner (CT) for further action.

1 comments:

  1. what is the advantage of opting for both states under ap reorg act

    ReplyDelete

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