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PVAT E-filing of returns - Law, problems & suggestions

 

kindly email problems faced by you and suggestions you want to give regarding this at pcgarg.taxadvocate@gmail.com. But before that please read the above article. we will bring these to the notice of higher authorities.

 

E-filing of quarterly returns under PVAT made compulsory w.e.f. quarter ending 30th September, 2009 onwards for following persons registered under PVAT Act :—

 

1. Persons making Inter state sale or Inter state purchase

 

2. Persons making exports out of the Country or 

 

3. Persons claiming refund under PVAT Act and         

 

4. Persons whose turnover during any one out of any previous year was Rs. Five crore or above.

 

Other persons registered for VAT have the option to file their returns electronically. (Public notice in Dainik Jagran dated 4-9-09 page 4, ETC has issued order in August, 2009 as well under Rule 36 as amended by notification No. G.S.R. 35/-- dated 29-5-2008)

 

Earlier to this public notice, the following law was in force:-

E-filing of quarterly returns under PVAT made compulsory w.e.f. quarter ending 30th June, 2009 onwards for following persons registered under PVAT Act :—

 

          (i)    Persons making exports out of the Country or

          (ii)   Persons claiming refund under PVAT Act and

          (iii)  Persons whose turnover during the previous year was Rs. Five crore or above.

Other persons registered for VAT have the option to file their returns electronically.

(THE EXCISE & TAXATION COMMISSIONER, PUNJAB ORDER dated 22/6/2009 under Rule 36 as amended by notification No. G.S.R. 35/-- dated 29-5-2008)

 

            Comments by P. C. Garg Advocate:—

            1.      All the persons specified above to file compulsorily e-returns under PVAT are not required to file quarterly returns mannually under PVAT.

            2.      A person making exports out of the Country is required to e-file PVAT return irrespective of the amount of export. He is to e-file PVAT return only for the quarter in which exports are made. If in the next quarter no exports are made, he is not compulsorily required to e-file PVAT quarterly returns for that next quarter.

3. A person making Inter State sales or purchases is required to e-file PVAT return irrespective of the amount of Inter State sales or purchases. He is to e-file PVAT return only for the quarter in which Inter State sales or purchases are made. If in the next quarter no Inter State sales or purchases are made, he is not compulsorily required to e-file PVAT quarterly returns for that next quarter.

           4.      A person who has excess ITC in a quarterly return but he does not claim refund for that quarter is not required to e-file PVAT return. He can carry forward such excess ITC to next quarter. In that next quarter, if he wants to claim refund, he has to e-file PVAT return only for that next quarter. Let we explain it by the following example :—

                     For quarter endig 30-6-2009, suppose excess ITC which is carried forward to the next year is Rs. 50,000/-

                     For quarter ending 30-6-2009, suppose excess ITC for which refund is to be claimed is Rs. 2,00,000 (including excess ITC of Rs. 50,000/- for the quarter ending 30-6-2009)

            In this case, e-filing of PVAT return is compulsory for the quarter ending 30-9-2009 and not for the quarter ending 30-6-2009.

           5.      How such persons will pay tax when e-payment of tax has not been made compulsory for such persons. This is not clear from the order which is required to be clarified by the department.

           6.      Persons other than who are required to e-file PVAT return compulsorily, has the option either to file return mannually or to e-file return.

  

 Problems faced in E-filing of Vat - Returns:

1. To obtain password from the deptt. is very typical and time consuming exercise. The passwords are generated too slowly. Dealer has to wait for days  to get password.

2. Site is very slow and most of the time the same gets blocked particularly in day. It take hours to e-file one return

3. Password are not provided even after the lapse of a week's time.

4. No procedure has been laid out for the receipt of cheques/drafts payments.

5.To visit deptt.'s office even after e-filing is done, for getting a receipt after showing an e- filing return is a futile exercise.

6. No grace period is given to persons who pay tax in cash in last days' of submission of returns.

7 . More than 60% traders maintain their account books  manually  (hand written). Even they have no basic knowledge of computer.  How they will e-file returns and VAT lists.

8. Small towns having small retailers, wholesalers and small  manufacturing firms as Regd. Dealers under PVAT Act. It is very difficult for them to e-file their returns. This e-filing  process will increase the cost of traders as they have to  computerize their accounts take net connectivity. This will certainly  hit their pocket.

As Persons making Inter state sale or Inter state purchase are required to file their return electronically, even small traders are covered for which it is difficult to efile return.

 

Suggestions:

1. E-filing of returns should be imposed on dealers having turnover above Rs. 2 Crore  annually instead of five crores and inter state sellers and purchasers should be excluded from this category.

 

1. Password should be automatically generated on site.

2. The capacity of site for acessability should be increased manifold.

3. More Banks need to be added for e-payment.

4. Minimum one month 's time after the last date of submission of return for e-filing should be provided.

5. E-filing facilitation centre should be opened in each town for the convenience of dealers who have no facility of computers/internet against a nominal charges through outsourcing.

6. No TIN should be locked until at least 60 days' time is expired after the last date of submission of quarterly return(s) as there could be a genuine problem to dealers due to illness or death or other reasons.

7. Some of the columns given in the Vat formats ( 18, 19, 23 & 24) are irrelevant and it is not possible to complete these columns and therefore, there is a need to simplify and amend those formats.

(These problems and suggestions are given by Sh. J.P. Dhiman Advocate Mohali.)

If you face or visualise any other problem or you have any solution to these problems or you have any suggestion to made kindly email us at "pcgarg.taxadvocate@gmail.com"