Sub.: Partial audit assessment under the Gujarat VAT Act for F.Y. 201617 and F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017) for the dealers applied under "Vera Samadhan Yojana -2019".
Ref.: (1) Government resolution No. APB / 102020 / 108 / 195224/K dated 5th June, 2020.
(2) Government resolution No. GST-102019-1006-TH dated 6th December, 2019.
(3) Circular No. 23/2020 Dated 3rd July, 2020 on withdrawal of notices for audit assessment under the VAT Act.
The Government of Gujarat has declared "Vera Samadhan Yojana -2019" as referred to at Sr. No. (2) (hereinafter referred to as "Vera Samadhan Yojana") for the purpose of admitting tax liability not shown in the return. Time limit for availing the benefit of Vera Samadhan Yojana ended on 27 January, 2020. Large number of dealers have applied under Vera Samadhan Yojana in the category of "selfdeclaration of liability" and have admitted the tax liability under the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as "the Act") for F.Y. 2016-2017 and / or F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017). If the dealers pays his admitted tax liability in twelve installments as specified in Vera Samadhan Yojana, he will get the benefit of remission of interest and penalty pertaining to such admitted tax liability.
2. The Commissioner of Commercial Tax and any officer authorized in this behalf, is empowered to undertake audit assessment under subsection (2) of section 34 the Act for F.Y. 2016-2017 and F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017). The time limit for completion for such audit assessment ends on 31st march, 2021 and 31st march, 2022 respectively.
3. Notices for audit assessment have been issued by the concerned assessing officers under sub-section (2) of section 34 of the Act requiring the dealer to appear with books of account and all evidences in support of the returns or such other evidences as specified in the notices. The notices for the above period have already been served in all such cases.
4. The COVID-19 pandemic has spread across the globe including India causing immense loss to lives and health of people, adversely impacting business and causing disruption in supply chain. Now, there is also necessity to comply with the norms of social distancing. Further, the Department is implementing the Goods and Services Tax and therefore, the pending work under the Act and the Central Sales Tax Act, 1956 (herein after referred to as "the CST Act") needs to be disposed expeditiously.
5. The Gujarat Chamber of Commerce and Industries, other trade associations and tax practitioners have represented to the Government to accept the liability as per the return furnished under the Act and not to undertake the detailed process of assessment in case of small dealers to avoid inconvenience and remove uncertainty in the mind of dealers.
6. The Government of Gujarat having considered the above, has given its consent to simplify pending assessment proceedings for certain category of dealers.
7. Accordingly, it has been decided to undertake partial audit assessment under section 34 of the Act for the following category of dealers:
A registered dealer:-
(i) (a) for F.Y. 2016-2017, having gross total turnover less than Rs. 10 crore during F.Y. 2016-17;
(b) for F.Y. 2017-2018, having gross total turnover less than Rs. 2.5 crore during F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017);
(ii) who has applied under Vera Samadhan Yojana in the category of "self-declaration of liability" and has admitted the tax liability under the Act for F.Y. 2016-2017 and / or F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017); and
(iii) (a) in whose case the notice for audit assessment has not been withdrawn in accordance with the circular referred to at Sr. No (3) above, solely due to the fact that he has applied under Vera Samadhan Yojana, in the category of "self-declaration of liability" and has admitted the tax liability under the Act for F.Y. 2016-2017 and / or F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017); or (b) in whose case the notice for audit assessment has not been withdrawn in accordance with the circular referred to at Sr. No (3) above, solely due to the fact that he has made purchase from a dealer whose registration is cancelled under clause (i) of sub-section (5) of section 27 of the Act (herein after referred to as "the dealer whose registration is cancelled retrospectively") and has claimed tax credit during F.Y. 20162017 and / or F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017) on such purchases.
8. Conditions for partial audit assessment:
8.1 Category: 1 Dealer in whose case the notice for audit assessment has not been withdrawn solely due to the fact that he has applied under Vera Samadhan Yojana:
The dealer who desires to avail benefit of the partial audit assessment for F.Y. 2016-2017 and / or F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017) shall:-
(a) Indicate reason(s) for admitted tax liability under Vera Samadhan Yojana as enlisted in Part A of the Annexure-I enclosed herewith, electronically, on or before 17 August, 2020, to the concerned assessing officer;
(b) admit and furnish an undertaking electronically, in Part B of the Annexure-I enclosed herewith, on or before 17 August, 2020, to pay the tax liability equivalent to the amount admitted under Vera Samadhan Yojana; and
(c) pay the admitted tax liability under Vera Samadhan Yojana in number of installments as specified therein.
Category: 2 Dealer in whose case the notice for audit assessment has not been withdrawn solely due to the fact that he has made purchase from the dealer whose registration is cancelled retrospectively and has claimed tax credit on such purchases and who has applied under Vera Samadhan Yojana:
8.2.1 Dealer in whose case admitted tax liability is equal to or less than the amount of tax credit claimed during the above period on such purchases:
(a) admit and furnish an undertaking electronically, in the Annexure-II enclosed herewith, on or before 17 August, 2020, to pay the liability equivalent to the amount covered under clause (b); and
(b) pay, on or before 30th September, 2020,-
(i) tax liability equivalent to the amount of tax credit claimed during the above period on such purchases after deducting tax liability admitted under Vera Samadhan Yojana;
(ii) applicable interest on tax liability referred to at sub-clause (i) above; and
(iii) penalty under sub-section (7) of section 34 of the Act @ 25% on tax liability referred to at sub-clause (i) above.
8.2.2 Dealer in whose case admitted tax liability which is higher than the amount of tax credit claimed during the above period on such purchases:
(a) indicate reason(s) for admitted tax liability under Vera Samadhan Yojana as enlisted in Part A of the Annexure-III enclosed herewith, other than due to claim of tax credit on such purchases, electronically, on or before 17 August, 2020, to the concerned assessing officer;
(b) admit and furnish an undertaking electronically, in Part B of the Annexure-III enclosed herewith, on or before 17 August, 2020, to pay the tax liability equivalent to the amount admitted under Vera Samadhan Yojana; and
9. Procedure of Partial Audit Assessment:
9.1 Procedure for the dealers covered under Para 8.1:-
i. The assessing officer will send a mail electronically to all the concerned dealer, intimating them to provide the reasons for admitted tax liability under Vera Samadhan Yojana in the Annexure-I enclosed herewith.
ii. The dealer who desires to avail facility of partial assessment under this circular shall indicate electronically the reason(s) for the admitted tax liability under Vera Samadhan Yojana along with an undertaking to pay the tax liability equivalent to the amount admitted under Vera Samadhan Yojana, in the Annexure-I enclosed herewith on or before 17 August, 2020 to the concerned assessing officer.
iii. On furnishing such details, the assessing officer will pass an assessment order under section 34 of the Act that will be limited to the admitted tax liability under Vera Samadhan Yojana on the issues indicated in the Annexure-I.
9.2 Procedure for the dealers covered under Para 8.2:-
iv. The assessing officer will send an intimation electronically to all the concerned dealer mentioning details of his purchases from the dealer whose registration is cancelled retrospectively, input tax credit which is likely to be dis-allowed and tax liability that may arise on account of such dis-allowance.
v. The dealer who desires to avail facility of partial assessment under this circular and in whose case admitted tax liability is equal to or less than the amount of tax credit claimed during the above period on such purchases shall furnish an undertaking electronically, in the Annexure-II enclosed herewith, on or before 17 August, 2020, to pay the liability equivalent to the amount covered under clause (b) of para 8.2.1 and on payment of such liability, in cash, on or before 30 September, 2020, the assessing officer will pass an assessment order under section 34 of the Act. Such order will be limited to the amount of tax credit claimed on such purchases.
vi. The dealer who desires to avail facility of partial assessment under this circular and in whose case admitted tax liability which is higher than the amount of tax credit claimed during the above period on such purchases shall indicate electronically the reasons for the admitted tax liability under Vera Samadhan Yojana as enlisted (other than due to claim of input tax credit on purchases from the dealer whose registration is cancelled retrospectively) along with an undertaking to pay the tax liability equivalent to the amount admitted under Vera Samadhan Yojana, in the Annexure-III enclosed herewith on or before 17th August, 2020 to the concerned assessing officer and on furnishing such details, the assessing officer will pass an assessment order under section 34 of the Act. Such order will be limited to the amount of tax credit claimed on such purchases and other admitted liabilities under Vera Samadhan Yojana on the issues indicated in the Annexure-III.
9. However, if a registered dealer who has failed to file return in respect of any period during the said year, he shall not be given the benefit of partial audit assessment under the Act unless he has filed annual return for the said year.
10. The decision of partial audit assessment under the Act in case of dealer shall not have any effect on his pending assessment proceedings, if any, under the Central Sales Tax Act, 1956.
(J. P. Gupta)
Commissioner of Commercial Tax,
Gujarat State, Ahmadabad.
ANNEXURE-I
(As per Circular No.: 27/2020 dated 3rd July, 2020)
Undertaking for payment of admitted tax liability for the purpose of
partial audit assessment for the F.Y ................... under the Gujarat Value
Added Tax Act, 2003
Name of dealer:
TIN: ..................................
F.Y.: ......................................
I, .............................. , (Proprietor / partner / managing director / Trusty / authorized person) of............................. (Name of the dealer) hereby request for partial audit assessment for the F.Y ....................... under sub-section (2) of Section-34 of the Gujarat Value Added Tax Act, 2003 (herein after referred to as "the Act") as per the Circular No.: 27/2020 dated 3rd July, 2020, issued by the Commissioner of Commercial Tax, Government of Gujarat in this behalf.
PART A
2. I, hereby, declare that I have admitted the tax liability under the Act in the category of "self-declaration of liability" under "Vera Samadhan Yojana-2019" on account of the list of reasons given below:
Total admitted tax liability of Rs. ............................................ on account of above reason.
PART B
I hereby admit my tax liability of Rs. ................... during the F.Y. ....................... on account of the reason given in PART A and give undertaking to pay the same under "Vera Samadhan Yojana-2019" in number of installments as specified therein.
Note:
(i) The dealer who desires to avail benefit of above circular shall be required to furnish an undertaking separately for F.Y. 2016-2017 and F.Y. 2017-18.
(ii) The undertaking shall be furnished electronically to the concerned assessing officer on or before 17th August, 2020.
ANNEXURE-II
partial audit assessment for the F.Y ............... under the Gujarat Value
TIN: ..............................
F.Y.: ..............................
I, ................................, (Proprietor / partner / managing director / Trusty / authorized person) of .................................... (Name of the dealer) hereby request for partial audit assessment for the F.Y ............................... under sub-section (2) of Section-34 of the Gujarat Value Added Tax Act, 2003 as per the Circular No.: 27/2020 dated 3rd July, 2020, issued by the Commissioner of Commercial Tax, Government of Gujarat in this behalf
2. I hereby give undertaking to pay, on or before 30th September, 2020, tax liability along with the applicable interest and penalty as shown in the Table below:
Table
ANNEXURE-III
I, ..............................., (Proprietor / partner / managing director / Trusty / authorized person) of ................................ (Name of the dealer) hereby request for partial audit assessment for the F.Y ........................... under sub-section (2) of Section-34 of the Gujarat Value Added Tax Act, 2003 (herein after referred to as "the Act") as per the Circular No.: 27/2020 dated 3rd July, 2020, issued by the Commissioner of Commercial Tax, Government of Gujarat in this behalf.
2. I, hereby, that declare that I have admitted the tax liability under the Act in the category of "self-declaration of liability" under "Vera Samadhan Yojana-2019" on account of following reasons:
(A) Tax liability of Rs .................. on account of tax credit claimed during F.Y ............. on purchases made from dealers whose registration is cancelled under clause (i) of sub-section (5) of section 27 of the Act.
(B) Other reasons for admitted tax liability under "Vera Samadhan Yojana-2019":
Total admitted tax liability of Rs ................ on account of reasons given in (A) and (B) above.
I hereby admit my tax liability of Rs .............................. during the F.Y. ............................ on account of the reason given in PART A and give undertaking to pay the same under "Vera Samadhan Yojana-2019" in number of installments as specified therein.