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Filling of MVAT returns Annexures

2016

Good News

- Due date for filling April 2016 return and

Annexures is 10/06/2016 but payment should

be made before 21/05/2016

- If payment is not made before due date you

have pay late return filling penalty

Forms under MVAT Rules 2005

• Form 231 - Regular VAT dealers

• Form 232 - Composition dealers

• Form 233 - For dealer executing works contract, leasing and partly under composition

• Form 234 – Applicable to PSI Units dealers

• Form 235 – Applicable to Notified Oil Companies

• Use version 60 for filling Sales and Purchase Annexures

• Use return version 1.8.3

Following combinations of returns are

permissible

– Form 231 and 234

– Form 233 and 234

– Form 233 and 235

– CST return with all MVAT forms

– Dealer having Sales and Works Contract Sale should file return Form no 233 and not 231

– Form 231 and CST returns are auto generated simultaneously

Revised Return

• Under section 20(4)(a) revision of MVAT and CST return is allowed for maximum times till uploading Form 704 as per periodicity of dealers

• Under section 20(4)(b) filling of revise return under MVAT and CST is allowed ANNUALLY after filling VAT audit report in Form 704 only once

• Under section 20(4)(c) filling of revise return under MVAT and CST is allowed ANNUALLY after filling all the MVAT and CST returns as per periodicity for the whole year for dealers who are not applicable for VAT audit

Transaction Codes for Sales Annexures

Transac

tion

Code

Description of Transaction

100 Sales to TIN holder (within state or Inter state excluding

against declaration

200 Sales to Non TIN holder (within state or Interstate)

300 Branch transfer / Consignment ( Within state or

Interstate)

400 Retailers, Restaurant, Club, Caterer, Baker, Second hand

Vehicle dealer, Lease composition dealer

450 Works contract Composition u/s 42(3), (3A)

460 On going Works contract

470 On going lease contract

Transa

ction

code

Description of Transaction

480 Amount of sub contract where tax paid by sub

contractor

490 Amount of sub contract where tax paid by Principal

contractor

500 PSI Exempted Sale

600 Sales goods return for transaction types

100,200,400,500,800

610 Sales goods return (Outside the state) for transaction

type 910

620 Sales goods return (Sale in transit) for transaction type

920

630 Sales goods return (Consulate) for transaction type

930

Trans

action

Code

Description of transaction

640 Sales goods return (Export against Form H) for

transaction type 940

650 Sales goods return (Direct Export) for transaction type

950

660 Sales goods return (Sale in course of Import) for

transaction type 960

670 Sales goods return for transaction type 970

680 Sales goods return (Branch transfer) for transaction type

300

690 Sales goods return (WCT Composition) for transaction

type 450

Trans

action

Code

Description of transaction

700 Sales credit note for transaction type

100,200,400,500,800,900

710 Sales credit note (Outside state) for transaction type 910

720 Sales credit note (Sale in transit) for transaction type 920

730 Sales credit note (Consulate) for transaction type 930

740 Sales credit note (Export against Form H) for transaction

type 940

Trans

action

Code

Description of transaction

750 Sales credit note (Direct Export) for transaction type 950

760 Sales credit note (Sale in course of Import) for

transaction type 960

770 Sales credit note (Sale against 8(6) for transaction type

970

780 Sales credit note (Branch transfer) for transaction type

300

790 Sales credit note (WCT Composition) for transaction type

450

800 For deduction u/s 3(2) i.e., turnover of sales before

crossing threshold limit

Trans

action

Code

Description of transaction

900 Sales against C Form

910 Sale outside the state (Sales effected outside the state of

Maharashtra)

920 Sale in transit

930 Inter state sale to consulate

940 Export on Form H

950

960

970

Direct Export

Import Sales (High Seas)

Inter state Sales u/s 8(6) Form I

In short the above codes can be remembered as

follows

• Code 100 to 500 – Sale (MS)

• Code 600 to 690 - Sales Return

• Code 700 to 790 – Sales Credit Note

• Code 900 to 970 – Sale (OMS)

How to prepare Annexure Template

Step 1 – Download the Sales and Purchase Annexure Template from www.mahavat.gov.in under whats new by the name “Sales _ Purchase Annexure (V60) – 2007”

Step 2 – On the basis of relevant Sales register, Purchase register and relevant books of accounts, Prepare Sales and Purchase Annexures

Transaction Code for Purchase

Annexures

Important Transactions code for

Purchase

- RD Purchase (10) , URD (20), Capital Asset (15)

- MS Branch transfer (35)

- OMS Branch transfer (30)

- OMS Pur against C-Form (40)

- MS Purchase against Form H (55)

- OMS Purchase against Form H (50)

- Import (60)

Validation and Preview Return

The summarized procedure of filling

return is as under

1) Preparation of Sales and purchase Annexures

2) Validation of Annexures

3) Manual Inputs in draft return

4) Preview of draft return

5) Verification of ITC Claim

6) Filling of return and payment of tax

Claim of ITC in the return

• It is possible that despite follow up, the

discrepancies in disclosure of transactions

between the claimant dealer and his vendors

shall remain un-reconciled. Irrespective of

such discrepancies, the claimant dealer would

be able to claim the ITC as per his own

disclosures for a particular return period

When ITC will be dis-allowed

• If any ITC which is claimed for a particular

period does not gets confirmed in the ITC

register either because of non disclosure of

the transactions by the supplier or non filling

of return by the supplier, it will be

automatically reversed in the next return of

buyer

Key features of New return filling

1) Periodicity for filling return will be Monthly or

Quarterly. Half yearly return periodicity will not

be available to dealers

2) Due date of payment and filling return is 21st of

the next month following the month or quarter

3) Claim of deduction for goods return shall be

allowed only when the buyer/seller confirms the

transaction through debit/credit note in his

Sale/Purchase Annexure

4) For every transactions of goods return and

credit note, it is mandatory to disclose the

invoice details of the original transaction of

Sale/Purchase

5) ITC mismatch report will be generated before

filling of return as per the Sales and Purchase

annexures uploaded by the buyers and sellers

6) Revision of returns will be allowed only after

uploading of revised sales and purchase

annexure

Highlights of the new Return and

Annexures

1)Fields in the draft return are auto populated

from the summarization of annexures. If

dealer does not agree with the draft return

shown by the system then he may change the

annexures

2) Form 232 (i.e., Retailers, Restaurant, etc)

Composition dealers filer is not required to file

sales annexure.

3) Even in case of NIL returns dealer has to file

sales and purchase annexure. In such case,

dealer has to put “0” (zero) value in the first

row of sales and purchase annexure. Select

applicable return form type i.e. 231 and

transaction type 200. Validate annexure,

preview return sheet shall be prepared with

zero values. Prepare file for uploading. After

uploading draft return shall be displayed with

zero values.

4) Sales to consumer or URD buyer can be

aggregated and Purchases from URD sellers

can be aggregated in a single row where

invoice numbers and date are not required to

be entered

5) To determine gross turnover of sales or

purchases, it is expected that all purchases

and sales should be reported in sales and

purchase annexure (involving purchase of

miscellaneous goods) such as printing and

stationery, repairs & maintenance, restaurant

bills, staff welfare expenses, sundry expenses

6) Seller may claim deduction on account of sales return or rate difference or discount in the return. The claim shall allowed in current return. If the buyer does not confirm such deductions till subsequent return then those deductions shall be reversed in next return.

7) Claim of “Purchase Return” does not require any confirmation from seller.

8) No negative values shall be accepted in annexure or return.

9) The transaction type “300” is applicable for

Branch Transfer/Consignment Sale. In case of

Branch Transfer, if goods are returned by

branch then it can be sent by branch transfer

mode also. In case of consignment sales,

dealer has to claim goods return

10) The developers who pay composition tax

under section 42(3A) cannot issue tax invoice

to the customers. Also the composition tax is

calculated @1% of the agreement value or

market value of property whichever is higher

and e-payment of composition amount is

required to be made in the return period in

which such agreement is registered.

Transaction type for such transaction is 450

11) Column N - ‘Action’ is provided for the purpose of single revised return of the entire year under section 20 (4) (b) and 20 (4) (c)

12) “INPUT TAX CREDIT REPORT” is available in the dealer profile. Dealer can download the invoice wise data shown by his seller against its purchases for particular TIN number.

13) TDS credit shall be transferred to the account of works contractor as and when return in form 424 is filed.

14) Claim of Sales or purchases return beyond six months is not allowed to in the annexures

15) Exact meaning of sales return is physical movement of goods

16) A tax invoice may contain multiple transaction code such as normal sales (100) and works contract sale (450), In such a case, dealer has to insert such invoice twice with suffix A with different transaction types

17) If sales are made to consumers (URD) then it can be

shown aggregated against transaction type 200.

There is no need to show invoice wise Sale

18) In form 231, works contract sales are not allowed to

be disclosed. Please file 233

19) In Government Contract the Government

department itself prepares the bill, in such cases

Government bill number can be inserted in sales

annexure

20) In many cases dealer charges tax after

deducting labour under rule 58 but mentions

rate of tax other than 5 or 12.5 e.g. in case of

painting they charge 12.5% on 80% of contract

value 10% , in such cases sales price u/r 58 can

be bifurcated under following heads in sales

annexure with transaction code 100

Net taxable , Tax, Labour charges

21) Only transaction, sales to non-TIN holder and

purchases from non-TIN holders can be shown

at aggregate

22) To solve any query take the help of FAQ’s

published by department on its site

23) Take the help of return template bundle on

website of department

Please fill free to contact Govilkar & Associates

for any query

THANK YOU