FREQUENTLY ASKED QUESTIONS – AP REORGANISATION ACT, 2014 – COMMERCIAL TAX ISSUES
(AT THE MEETING WITH
REPRESENTATIVES OF TRADE AND INDUSTRY ON 16/04/2014 AT VISAKHAPATNAM AND
17/04/2014 AT VIJAYAWADA, ORGANISED BY FAPCCI)
Sl.
No
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Query
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Response
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1
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CST
Exemption for five years and reduction of tax rates
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These are
the policy decisions, which can be addressed only by the respective State
Governments after 02/06/2014, and not within the purview of A.P. State
Reorganisation Act, 2014.
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2
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Request
not to shift STAT additional bench from Visakhapatnam
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No such
shift is contemplated
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3
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For the
VAT 200 return for the month of May, 2014, which TIN to be mentioned, i.e.,
old TIN or new TIN
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For the
May, 2014 VAT return, covering the transactions for the tax period 01/05/2014
to 01/06/2014, the return shall be filed with old TIN only.
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4
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Whether
old invoices by changing new TIN be used to prevent destroying the stationery
on or after 02/06/2014
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By
changing the old TIN with new TIN for the transactions on and after
02/06/2014, the old invoices may be used, not only to prevent existing
printed stationery, but for industries / manufacturers, continuity of invoice
serial numbers is required under Central Excise Laws. However, for the
purpose of demarcating the serial numbers of invoices upto 01/06/2014 and
from 02/06/2014, a new suffix or prefix after the invoice number may be added
from 02/06/2014.
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5
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What about
ITC carried forward as on end of 01/06/2014.
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The dealer
is entitled to carry forward the whole of ITC available as on 01/06/2014.
There is no mechanism under the existing provisions of law to claim refund of
excess ITC as on 01/06/2014 except in the case of exporters. However, in
cases, where the dealers have not filed the return for the month of March 2014,
such dealers have the choice of claiming excess ITC available as on
31/03/2014 as refund.
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6
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Where
refund claims pending as on 02/06/2014 shall be paid to the dealers
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All the
refund claims payable to the dealers as on 02/06/2014 will be paid by the concerned
assessing authority of the State under whom the dealer has to file returns /
pay taxes in the new State(s) on or after 02/06/2014.
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7
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Furniture Dealers: Request for
reduction of rate of tax from 14.5% to 5%
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These are
the policy decisions, which can be addressed only by the respective State
Governments after 02/06/2014, and not within the purview of A.P. State
Reorganisation Act, 2014.
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8
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Whether
registration under A.P. Profession Tax, Luxury Tax etc. to be changed
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Unless
otherwise notified by the competent registering / assessing authority, the
old registrations under all enactments (other than APVAT and CST Acts) will
continue to hold good.
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9
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“C” Forms
not obtained as on 02/06/2014 for the earlier transactions. Whether to be
obtained with new TIN or old TIN and from whom?
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They have
to quote the old TIN and request “C” Forms from the concerned assessing
authority under whose jurisdiction, they come on or after 02/06/2014.
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10
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On
proposed special packages to north Coastal Andhra Pradesh and Rayalaseema
regions – whether only for new industries, expansion units on or after
02/06/2014 – request to extend the incentives to existing industrial units
also
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A.P.
Reorganisation Act, 2014 is not specifying what are the incentives proposed
under the so called special packages and if so, from what date such
incentives will be applicable and it is not also specific, whether they cover
only new industries and expansion units set up on or after 02/06/2014. As and
when guidelines are formed, there will be clarity.
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11
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Purchase
of goods before 02/06/2014 but receipt of goods after 02/06/2014. How to claim ITC
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Purchase
of goods before 02/06/2014 would be with old TIN. When goods are received on or after
02/06/2014, no input tax credit will be allowed with old TIN, as such old
TINs does not exist on or after 02/06/2014.
The dealers have to think of business solutions instead of legal
solutions.
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12
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The period
to be included in the return for May, 2014
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For the
VAT 200 return for May, 2014, the transactions for the period from 01/05/2014
to 01/06/2014 shall be included and such return shall be filed on or before
20/06/2014.
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13
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Presently,
there is a branch office in Telangana and registered office with TIN in
Andhra area. Post bifurcation, how the
Telangana branch office will be registered in the State of Telangana
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If the
dealer does not choose in which Circle, he seeks registration, including
designating a principle place of business in the State of Telangana, then
based on the physical location and address of the present branch office, a
new TIN will be assigned by the C.T. Department in the State of Telangana and
allotted to a circle, as per Door No., House No. etc.
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14
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Whether
Advance Rulings are valid even after 02/06/2014. What about pending applications
for Advance Rulings?
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All
Advance Rulings issued prior to 02/06/2014 are valid even after 02/06/2014 in
both the States. Pending applications for Advance Rulings as on 02/06/2014
shall be transferred to the respective States based on the TIN of the applicant
dealers.
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15
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All
industrial incentives, being presently availed by the dealers whether
honoured after 02/06/2014
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Depending
upon the physical location of the industrial unit, they will be honoured in
the State, in which the said registered dealer will come under
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16
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ITC –
whether to be carried forwarded or not
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It is a
decision to be taken by the dealers at the time of filing the monthly VAT 200
return for the month of March, 2014.
At the time of filing return for March, 2014, either they can claim
refund of the excess ITC or choose to carry forward the said excess ITC to
the next tax period. For the excess
ITC, if any, as on 01/06/2014, the dealer has no option to claim refund of
such excess ITC as on 01/06/2014 unless such dealers are exporters, but to
mandatorily carry forward such ITC.
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17
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Revised
return – whether with old TIN and upto what period
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As per
existing provisions of VAT law, revised return may be filed within 6 months
from the end of the tax period to which the revised return relates and for
the transactions prior to 02/06/2014, revised return shall be filed only with
old TIN.
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18
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Whether
new password will be given for new TIN
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Since the
new TIN is being generated in the place of old TIN with a new prefix for the
new State(s) of Telangana and Andhra Pradesh, the old password may be used
for the first time and if the dealer so chooses, may change such password
subsequently.
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19
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Whether
old TIN and new TIN can be operated with new password
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Yes,
initially and the dealer can change password subsequently.
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20
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A dealer
having new TINs in A.P and Telangana – after raising a branch stock transfer
from A.P to Telangana (vice versa also) – if an invoice is also
simultaneously raised in A.P and stock sent to the customer in Telangana directly
instead of to the branch – Whether it is stock transfer?
|
No. As the
goods are moving from Andhra Pradesh to a dealer / customer in Telangana with
an invoice raised directly in the name of the customer, even though the
branch name of Telangana is mentioned, as the goods are moving directly from
one State to another State customer, such interstate movement of goods will
be treated as interstate sale from A.P to Telangana customer but not
interstate stock transfer from A.P to Telangana branch.
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21
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Separate
logins / passwords required for waybills like e-payments
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Separate
login / password are required for waybills and e- payments separately for the
State of Telangana and for the State of Andhra Pradesh. If such facility is
not available in the software, necessary changes will be made.
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22
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Advance
tax paid in Vehicular Traffic Cheque is not getting adjusted in VAT 200
return
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This is a
software glitch unconnected with A.P. State Reorganisation. Will be examined and necessary remedial
action will be taken along with any other software bugs.
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23
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Payment of
tax in TOT instead of VAT – Request not to allow TOT number against VAT
dealer
|
The
initial onus to pay tax against a proper registration number rest with the
dealer or it’s authorized STP etc.
However, any software glitch will be examined and rectified.
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24
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Request
not to detain vehicles while conducting VTC / at checkposts, but to note down
vehicle number, TIN / Registration number of the consignor / consignee and
leave the vehicle
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Vehicle
detention will be a contingent decision taken by the person, checking the
vehicle / authorised officer at the checkpost. Depending upon the exigencies, the said
officer may chose either to detain the whole vehicle along with the goods or
may detain sufficient quantity of goods to meet the tax / penalty component
(likely) and may leave the vehicle and balance of goods. This is not
connected with the A.P. State Reorganisation Act, 2014.
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25
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Levy of
Entry Tax on vehicles brought from Telangana / Andhra Pradesh into other
States, which are less than 15 months old
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At
present, Entry tax is leviable on the vehicles, if the registration of the
said vehicle in the State of origin is less than 15 months from the date of
such registration under the Motor Vehicles Act, 1988. For eg., if the vehicle is registered in the
State of Telangana as on 04/06/2014 and the said vehicle is brought into the
State of A.P as on 02/09/2015. Since
the vehicle is registered in the State of Telangana, which is less than 15
months old, Entry tax is leviable by the State of Andhra Pradesh, if such
vehicle is brought into the State of Andhra Pradesh (similar is the case in
the State of Telangana)
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26
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Whether
new “C” Forms / other Statutory Forms will be issued for Telangana State
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Steps are
being taken to issue new “C” Forms and other statutory Forms for the State of
Telangana for the transactions on or after 02/06/2014.
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