Return Procedure

SALES TAX DEPARTMENT
MAHARASHTRA STATE, MUMBAI
MANUAL OF PROCEDURE
RETURN BRANCH
MAHARASHTRA VALUE ADDED TAX ACT, 2002
2007
PREFACE
Maharashtra Value Added Tax Act,2002 has been implemented in the state w.e.f.1st
April 2005. The MVAT Act is administered through various functional branches. The Return
Branch in Mumbai has started its functioning from 1st May 2005. However, there was no detailed
manual procedure except the manual prepared by the P.W.C. As per the directions and guidelines
of the Hon'ble Commissioner of Sales Tax, Maharashtra State, Mumbai Shri. Sanjay Bhatia, the
draft committee for return branch manual has been formed . Accordingly the manual has been
prepared and submitted for approval to the Hon'ble Commissioner . As per the further guidelines
this manual has been finalized.
Initially it was decided that,the follow up of VRS dealers was to be fdone by special
cell created under the advisory visit section. Now this work in Mumabi has been allotted to Return
Branch by the Hon'ble Commissioner. As per circular No.37A2006 dated 29th November 2006,
action of cancellation of dealers registered under VRS & not responding to notice in Form 603,
was to be taken by VRS Follow up cell. But for the purpose of uniformity of work of cancellation
of R.C., the action of cancellation of R.c. Of VRS dealers also is to be performed by Registration
Branch. Accordingly changes have been made in the manual.
It is expected that this manual should be used by the Return Branch at all the
locations in the State of Maharashtra.from 1st November 2007.
Every efforts has been made to avoid errors or ommissions in the manual. In spite of
this, errors may creep in. Any mistake, error or discrepancy noted may please be brought to the
notice of the manual draft committee on e-mail id “jcreturn.mumbai@mahavat.gov.in”
Mumabi - Manual draft committee
1st November 2007 Office of the
Joint Commissioner of Sales Tax,
Return,Mumbai.
Manual Draft Committee
Sr. No. Name Designation

1 Smt. V. S. Mahabale P.A. To J.C. Return Mumbi
2 Shri. P.M.Ranalkar Sales Tax Officer, Return, Mumbai
3 Shri. B.H. Gomase ----do----
4 Shri. K. D. Rudrawar ----do----
5 Shri. S. V.Patil Sales Tax Inspector
6 Shri. C.T. Kamble Sales Tax Inspector
7 Shri. S. A. Khare Sales Tax Inspector
8 Shri. A. M. Khadilkar Sales Tax Inspector
Guidance :
Shri. B. A. Sable
Joint Commissioner of Sales Tax,
Return, Mumbai
INDEX
1 Objective/ Function 1
Flow Chart of the Branch 2
2 Organisational Structure
a) Mumbai 3
b) Mofussil 4
c) Work Chart of Return,Mumbai 4
3 Relevant Provisions of the Act, Rules, Notifications & Trade Circulars.
Obligation to file VAT Return
Section 20 – Returns & Self Assessment 5
Rule 17 – Submission of Returns 6
Rule 18 – Special provisions for first & last return in certain cases & for dealers under 10
the Package Scheme of Incentives
Rule 19 – Separate VAT Returns 11
Rule 20 – Complete & Self Consistent Return 11
Section 29 -Relevant penal provisions 12
29(7) - For non compliance to Notice issued by the authority
29(8) For failure to file return within prescribed time 12
29(9)(c) For filing incorrect & inconsistent return 12
29(11) - Limitation period for passing penalty order 12
29(12) - Monitory limits for imposition of penalty 12
Section 74 – Offences & Penalties 13
Section 32 -Payment of Tax etc. 15
Rule 41 - Time for payment. 16
Rule 45 – Method of Payment 16
Rule 46 – Notice for payment of tax not paid accordingly to returns 17
Section 31- Deduction of Tax at Source 17
Rule 40 - Deduction of Tax at Source 19
Section 23 (1) – Best Judgment Assessment of non filers (Unilateral Assessment) 20
Section 64(1) – Production of Accounts & Documents 20
Rule 70 – Form of notice for production of documents, etc. 20
Rule 90 – Penalty for breach of any Rules 21
Section 16(6) – Cancellation of Certificate Registration 21
Rule 11(4) – Cancellation of certificate of Registration 22
Section 33 – Special Mode of Recovery 22
Rule 48 – Form of notice for the purposes of sub-section (1) of 33 23
Circulars -
Circular 37 A of 2006 – Formation of Voluntary Registration Follow up Cell & 24
Unregistered Period assessment cell
Trade Circulars -
10 T of 2005 – Filing of Returns 27
25 T of 2005 – Filing of Returns for the month of July 2005 29
14 T of 2006 – Filing of returns in new forms 221,222,223 224 and 225. 30
29 T of 2006 – form of chalans to be used in respect of payment for the periods upto 33
31/3/2005
30 T 2006 – MVAT Rules 2006 (Fourth amendment) 34
31 T of 2006 – Periodicity of Returns 43
27 T of 2006 – Interest on delayed payment of tax to be paid along with tax amount 44
while furnishing Return/Chalan
4 Targets (Financial & Physical Targets), Key Performance 45
a) Financial Targets 45
b) Physical Targets 45
c) Key Performance 47 59
5 Process in Brief 60
1) Collection of the Revenue Receipts & their reconciliation with the receipts as per the 60
scrolls
2) Collection & data entry & processing of returns 60
3) Storage 61
6 Procedure of of Return Branch 62
1) Collection & Reconciliation of the Revenue Receipts
2) Collection of returns, sub-scrolls & main scrolls
3) Data Entry of returns, sub-scrolls & main scrolls
4) Processing of returns, sub-scrolls & main scrolls 63
a) Prevalidation
b) Postvalidation
5) Follow up of VRS dealers 64
6) Visit of recovery action & tracing out non traceable dealers 65
7) Storage 66
8) Interface with other branches of STD 66

9) Miscellaneous 66
7 Duties & Responsibilities at each hierarchy for every function 67 74
8 Reporting Formats of the Branch 75
Compilation of Reconciliation of the Revenue Receipts
Statement No.1 - statement of act wise daily tax receipts 75
Statement No.2 - Statement of Reconciliation of Act wise Receipts 76
as per scrolls & as reported by R.B.I./S.B.I.
b) Collection of Returns 77
Statement No.1 - Statement of Generation of Main Scroll No. 77
On Mahavikas
Statement No.2 - Statement of Return Collection & scanning status 78
Statement No.3 - Statement of Defective Returns 78
Statement No.4 - Statement of Short Filers 79
Statement No.5 - Statement of Defaulters 80
Statement No.6 - Statement of Interest Orders 81
Statement No.7 - Statement of Penalty Orders 82
Statement No. 8 - Statement of Unilateral Assessment Orders 83
Statement No. 9 - Statement of Recovery 84
Statement No. 10 - 85
Statement of Application received for tax clearance certificate, scroll certificates &
certified copies of returns
9 Various Control Registers For the Branch & Format Of the Same 86
A) Compilation & Reconciliation of the Revenue Receipts 86
Register No.1 - 86
Register of Act wise & Bank wise daily Receipts as per RBI/SBI
Register No.2 - 87
Register of Act wise & Bank wise Daily Receipts as per Main Scroll
B) Collection of Returns 88
Register No.1 - 88
Register of Collection & Processing of the returns Received from The Banks & STD
Return Counter
Register No.2 - Register of TDS Returns 89
C) Data Entries of the Returns 89
Register No.1 - Register of Generation of Main Scroll No. on Mahavikas 89
D) Processing of returns & payments 90
Register No.1 - Register of validation of Returns, Sub scrolls & Main Scrolls 90
Register No.2 - Register of defect Memos 90

Register No.3 - Register of Defaulters 91
Register No.4 - Register of Short Filers 92
Register No.5 - Register of Interest Orders 93
Register No.6 - Register of Penalty Orders 94
Register No.7 - Register of Unilateral Assessment Orders 95
Register No.8 - Register of File Movement 96
Register No. 9 - Register of closed cases sent to Record Filing section 97
Register No.10 - Register of Applications Received for tax clearance certificate,scroll 98
certificate & certified copies of Returns
Register No.11 – Register of VRS Dealers' Follow up 98
E) Storage of Returns 99
Register No.1 - Register of Returns received from DEA after scanning 99
Register No.2 - Register for movement of Main Scrolls 99
Register No.3 - Register for providing photo copies of the returns 100
10 Inspection Procedure & Frequency 101
Inspection Procedure
Inspection Points
Frequency of the Inspection
Full Fledge Inspection
Special Inspection
Surprise Visits
11 Comments on Record Filing System 102
12 Responsibility & date for updating the manual 103
13 Linkage To Other branches 104
14 Computerised Module Functioning 105
1) FLOW CHART -RETURN ALLOCATION 106
2) FLOW CHART -VALIDATION 108
a) FLOW CHART -MAIN SCROLL VALIDATION 108
b) FLOW CHART -SUB- SCROLL VALIDATION 109
c) FLOW CHART -RCC/ CHALAN VALIDATION 110
Work Relating To Paid Refund Advice Notes 111
Chapter 1
Objectives/Functions of the Return Branch :
To collect returns, sub-scrolls & main scrolls
1) From Authorised Banks

2) From Sales Tax Department's counter
To process VAT Returns and payments.
1) To generate main scroll number on Mahavikas system
2) To handover returns along with scroll

to Data Entry Agency (DEA)
3) To validate returns on sample basis &

the returns of the short filers &
late filers to whom various notices are to be issued
4) To issue defect notices to wrong filers
5) To follow up & ensure the reduction of non filers
6) To follow up short filers
7) To follow up late filers
8) To follow up the VRS dealers & to cancel their

registrations, if required.
9) To pursue available recovery upto bank/debtors attachment
10) To find out non traceable dealers
Proper Storage of the Returns & Scrolls
To provide information/returns to other branches of

Sales Tax Department
To collect the revenue receipts from R.B.I./S.B.I. and reconcile them with the
receipts as per the scrolls.
RETURNS - FLOW CHART
Dealer
S.T.D. Counter Return without payment Files Return-cum-chalan

Bank Branch
(RCC) with tax
Sub-Scroll + RCC
Main scroll + Sub scroll + RCC RBI
STD (C/P Link Branch
Section)
Main Scroll/
Sub-scroll/ Returns/scrolls for
scanning Chalan
Treasury Foil]
DFor
E A Data Entry STD Treasury/PAO
Validation / Approval
(MAHAVIKAS)
MAHAVIKAS (Report
Generation)
Returns/scrolls
STD
(Storage) Returns/scrolls for
sample validation
Defective Non-filers Short Filers Late filers

Returns
Contact telephonically
Contact telephonically
Defect Notice Courtesy Letter & Show Cause Notice
Show Cause Notice Notice in Form 213
Interest Orders Penalty Orders

If return is not filed
Prosecution Penalty
Orders
Unilateral
Assessment If return is not filed
Order Recovery action
before MLRC
If still not recovered

Recovery Branch
Chapter 2
Organisational Structure
a) Mumbai
RETURN BRANCH
ORGANIZATIONAL STRUCTURE
( FOR MUMBAI)
JT.COMMR.OF SALES TAX
ESTABLISHMENT OFFICER ASST.COMMR.OF SALES TAX
DY.COMMR.OF SALES TAX (1) DY.COMMR.OF SALES TAX (2) DY.COMMR.OF SALES TAX (3)
SALES TAX OFFICER SALES TAX OFFICER SALES TAX OFFICER
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
7 STIs. 7 STIs. 7 STIs.
2 CLERKS 2 CLERKS 2 CLERKS
To each S.T.O. To each S.T.O. To each S.T.O.
SANCTION & DISTRIBUTION

OF OFFICERS & STAFF
DESIGNATION J.C. D.C.1 D.C.2 D.C.3 S.T.O.
JT.COMMR.OF SALES TAX 1
DY.COMMR.OF SALES TAX 3
ASST.COMMR. OF SALES TAX 1 1
SALES TAX OFFICER 21 1 7 7 6
SR.STENO 1 1
JR. STENO 1 1
SALES TAX INSPECTOR 154 4 2 5 3 140
CLERK 74 11 5 11 7 40
NOTICE SERVER 7 2 3 2
PEON 40 5 2 8 5 20
TOTAL 303
b) Moffusil
RETURN SECTION FOR MOFUSIL

JT.COMMR.OF SALES TAX
DY.COMMR.OF SALES TAX (Returns)
Sales Tax Officer Sales Tax Officer
Sales Tax Inspector Clerk Sales Tax Inspector Clerk
WORK-CHART
JT. COMMISSIONER OF SALES TAX
(RETURNS), MUMBAI
| | |
P.A. E.O.
| | |
D.C.(RETURN) 1 D.C.(RETURN) 2 D.C.(RETURN) 3
1) Revenue receipt 1) Collection & Processing 1) Return Counter

2) Work related to DEA 2) Bank Liaisoning
3) Storage of returns 3) Mahavikas
4) Adjustment of excess
payment
STO(1) STO(8) STO(15) Return counter

STO(2) STO(9) C & P, STO(16) Mahavikas
STO(3) Revenue receipt Reconciliation STO(17) Mahavikas
& Reconciliation
STO(4) STO(10) Storage & Scroll STO(18)
STO(5) STO(11) STO (19) Bank
STO(6) STO(12) correspondence
STO(7) STO(13)
STO(14) STO (20)

Chapter 3
Relevant Provisions of the Act, Rules, Notifications, Internal

Circulars & Trade Circulars.
Obligation to file Vat returns
Section 20- Returns & Self Assessment
(1)(a) Every registered dealer shall file correct,complete & self-consistent return in such
form,by such date,for such period and to such authority as
may be prescribed. Different types of returns may be prescribed for different
classes of dealers.
(b)The Commissioner may examine the return to ascertain whether it is complete and self-
consistent. If the return is not complete or self - consistent, the commissioner may serve on the
dealer,within four months of
date of filing of the return, a defect notice in the prescribed form. The
said registered dealer shall correct the defects and submit to the prescribed authority a
fresh,complete & self consistent return within one month of the service of the defect notice.
Provided the registered dealer who fails to submit a complete or self consistent fresh return
within the said period of one month shall be
deemed not to have submitted the return within the prescribed time as required under clause (a).
(2) Notwithstanding anything contained in sub-section (1), the

commissioner may,subject to such terms and conditions, as may be prescribed,permit any
dealer to file separate return-
(a)for all or any of the places of business of the dealer,whether or not situated within the
jurisdiction of the same registering authority, or
(b)for different constituents of his business to such authority as he may direct.
(3) Every person or an unregistered dealer who is required to file a return under any other
provision of this Act, shall file such return for such
period,in such form,by such date and to such authority as may be prescribed and the
provisions contained in paragraph (b) of sub-
section(1)shall apply to such return as they apply to the return prescribed under paragraph (a)
of sub- section (1).
(4) Any person or dealer who, having furnished a return under sub- section(1),(2) or (3)
discovers any omission or incorrect statement therein,may furnish a revised return in respect of the
period covered by the return at any time before a notice for assessment is served on him in
respect of the period covered by the return or before the expiry of a
period of eight months from the end of the year containing the period to
which the return relates,whichever is earlier.
(5)Where a dealer is required to file a fresh return or,as the case may be,a revised return ,he
shall file such fresh or revised return with the authority prescribed and if any amount of tax is required to
be paid in accordance with such fresh or revised return, then he shall pay such amount in the
Government Treasury and attach a self attested true copy of the receipted chalan with the
fresh or revised return.
Submission of VAT Returns
Rule 17 - Submission of Returns

(1) The forms of returns may be obtained from the Sales Tax Department or may be downloaded from the
website www.vat.maharashtra.gov.in maintained by the Sales Tax Department. The forms may also be
obtained privately. If the forms are downloaded from the website of the Department or are obtained
privately then they should conform with the contents, size of details of the forms issued by the Sales Tax
Department and the paper used should be of white colour, A4 size and of minimum thickness of 70 g.s.m or
of the executive bond variety. The returns shall be in the Form mentioned in column (2) of the Table
below for the purpose mentioned in column (3) of the said Table.
TABLE
Sr. No. Form For the purpose of filing periodic returns by the classes of dealers described
No. below.
(1) (2) (3)
1. 221 For dealers ,other than –
(i) dealers who have opted for composition of tax whether for part of the business or
the entire business.
(ii) dealers executing works contracts, whether as part of the business or as the entire
business.
(iii) dealers engaged in transfer of the right to use any goods for any purpose,
whether as part of the business or as the entire business.
(iv) dealers under the Package Scheme of Incentives
and
(v) notified oil companies.
2 222 All dealers who have opted for composition of tax whose entire turnover is under
composition other than –
works contractors opting for composition and dealers opting for composition for part
of the business.
3. 223 All dealers who are –

i) executing works contracts, whether as part of the business or the entire
business and whether or not the business or part of the business is under composition.
ii) Engaged in the activity of transfer for the right to use any goods for any
purpose whether as part of the business or the entire business, and
iii) Dealers whose part of the business is under composition.
4. 224 All dealers under Package Scheme of Incentives who are holding a valid certificate
of entitlement.
5. 225 Notified oil companies.
Explanation I :-
For the purposes of this sub-rule, in the case of a dealer who is also doing business of
execution of works contract, transfer of the right to use any goods for any purpose or has opted for
composition for part of his
business, if he is otherwise liable to file return.
(i) in Form 221, he shall file return in Form 223, instead of in Form 221, and
(ii) in Form 224, or Form 225, he shall in addition to the return in
Form 224,or as the case may be Form 225 file a return in Form 223.
Explanation II :-
Where in respect of any period ending on or before 31th March 2006 or, as the case may be,
the due date was before the 1st April 2006,but the return was not filed before the 1st April 2006, then
the dealer shall file the return
in the Form mentioned in column (2) of the Table above for the purposes mentioned in
column (3) of the said Table.
(2)Every registered dealer who is require to furnish a return shall subject
to the provisions of this Rule furnish it duly signed by him or by a person authorized by him,
to the authorities specified below that is to say ---
(a)where tax including interest or penalty is due and payable according to the return to the
Government Treasury while making payment of tax,
penalty or interest under rule 45.
Provided that the dealer who is a notified oil company shall also file a copy
of his return in Form 225 with the Joint Commissioner of Sales Tax,
Nariman Point branch within three days of filing of the return-cum-chalan
in Form 225 with the Government Treasury.
(b)where no tax including penalty or interest is due and payable according to the return,
(i) to the registering authority (non-resident circle) Mumbai, if the dealer has been registered by such
authority.
(ii) to the registering authority having jurisdiction over the principal place of business of the dealer, if such
dealer has places of business under the jurisdiction of more than one registering authorities; or
(iii) to each of the registering authorities having jurisdiction over each of the respective place of business of
the dealer in respect of which he holds a Certificate of Entitlement under any Package Scheme of Incentives
except the Power Generation Promotion Policy 1998, covering all the sales and purchases relating to the
eligible industrial unit.
(iv) in any other case, to the registering authority within whose jurisdiction the place or places of business,
as specified in the certificate of registration of the registered dealer is or are situated.
(c) Where the dealer has obtained permission to file a separate return
under rule 19 in respect of any place of business, other than the principal place of business or
as the case, may be any constituent of his business,
he shall file a separate return in respect of such place of business or such constituent of his
business with the Government Treasury or as the case may be to the registering authority, appropriate to
the said place of
business or as the case may be the place where he is engaged in the said constituent business.
(d) where any amount of tax including interest or penalty is due as per a fresh or revised return, then the
dealer shall first pay such amount in the Government Treasury. He shall attach a self attested copy of the
chalan in respect of the said payment with the fresh return or revised return which he shall file with the
appropriate registering authority as per the provision of clause (b) or, as the case may be clause to -
(3 ) Every dealer who is required to file monthly returns under sub-rule (4)
if he is covered by the notification issued under sub-section (4) of section
41 and if he is specified in the said notification for the purposes of this sub- rule shall
file monthly return in Form 225 within fifteen days of the end
of the month to which the return relates.
Provided that, the said dealer may file the return in accordance with
clause (c ) of sub- rule (4) if he makes ad-hoc payment within fifteen days
of the end of the month to which the return relates of an amount equal to eighty percent of
the tax paid by him in respect of the month immediately preceding the month to which the
return relates & pays the remaining amount, if any, at the time of filing of return in accordance with
sub-rule (4).
(4) Subject to the other provision of this rule and of rule 18-
(a) every registered dealer who is a retailer and who has opted for composition of tax under sub-section
(1) of section 42 shall file a six monthly return within twenty-one days from the end of the period of six
months to which the return relates.
(b) every registered dealer to whom clause (a) does not apply and
(i) whose tax liability during the previous year was Rs. 36,000 or less,
or, as the case may be, who had no entitlement for refund, or,
(ii) whose entitlement for refund during the previous year was Rs.36,000 or less ,
shall file a six- monthly return within twenty-one days from the end of the period of six months
to which the return relates.
(c) every registered dealer to whom clause (a) or (b) does not apply and -
whose tax liability during the previous year had exceeded Rs. 1 lac,or,
whose entitlement for refund during the previous year had exceeded Rs. 1 lac.
shall file a monthly return within twenty-one days from the end of the
month to which the return relates.
(d) any other registered dealer shall file a quarterly return within twenty one days from
the end of the quarter to which the return relates.
Explanation I :- For the purposes of this rule, the expression “tax
liability” in relation to a registered dealer means the total of all taxes
payable by him in respect of all his places of business or as the case may be, all the
constituents of his business in the state under the Central Sales Tax Act,1956 and
Maharashtra Value Added Tax Act 2002, after adjustment of the amount of set- off or refund
claimed by him, if any,
under the respective Act.
Explanation II :- For the purposes of this rule the expression
“entitlement for refund” in relation to a registered dealer means the net refund payable
to him in respect of all his places of business or as the case may be, all the constituents of his business in
the state under the Central Sales Tax Act,1956 and Maharashtra Value Added Tax Act 2002,
after adjustment of the amount of set- off claimed by him against taxes payable under the
said Acts.
Explanation III :- For the purposes of this rule, the first six monthly
return shall be for the period starting on 1st April and ending on the 30th September. The
second six monthly return shall be for the period
starting on the 1st October and ending on the 31st March.
Explanation IV :- Where a dealer is required under rule 18 to file

quarterly returns in respect of his place of business for which he has
obtained a Certificate of Entitlement and has also obtained a permission
to file separate returns in respect of any other place of business or any other constituent of his
business, then notwithstanding anything contained in this sub-rule, he shall file quarterly separate
returns where he is required to
file separate returns.
(5) (a) notwithstanding anything contained in sub-rule(4) where a dealer has, in accordance
with clause (b) of sub-rule (4), filed a return for the six monthly period, ending on 30th September 2005 and
has carried forward any amount of set-off to the next return or has claimed the same as
refund, he shall, in place of the six monthly return for the period ending
on 31st March 2006 file a quarterly return for the quarter ending on
31st December 2005, on or before 13th March 2006 and a quarterly return
for the quarter ending on 31st March 2006 on or before 21st April 2006,
proposed to claim a refund as per these returns.
(b) Notwithstanding anything contained in sub-rule(3) of rule 18, every dealer who is liable
to file quarterly returns under that rule, shall in place
of the quarterly return for the quarter ending on 31st March 2006, file
monthly returns for the months of January, February and March 2006, on or before 13th March
2006, 20th March 2006 and 21st April 2006, respectively.
(c) The returns under this sub-rule shall be filed in the same form in which the dealer
would have filed the six monthly or, as the case may be, quarterly return.
Rule 18 – special provisions for first and last return

in certain cases and for dealers under the Package Scheme of
Incentives.
where the dealer has become liable to be registered under this Act, the first return to be furnished by him
shall be for the period from the appointed day. 1st April of the year or as the case may be from the date of
event which makes him to liable to pay tax to the end of the quarter containing the date of registration. He
shall continue to file quarterly returns in respect of periods ending on or before the end of the year
containing the date of effect of registration. The quarterly return shall be filed within twenty-one days of
the end of the quarter to which the return relates.
Where the business in which the dealer is engaged is discontinued or otherwise disposed off or has been
transferred then the last monthly, or as the case may be quarterly return or six monthly return shall be for
the period beginning with the first date of the month or as the case may be first date of quarter or the first
date of the six month period and ending with the date of the said discontinuance, disposal, or transfer of the
business. The provisions contained in sub-rule (4) of rule 17 regarding the time in which monthly or
quarterly or six monthly returns are to be filed shall apply to such return.
(a) A dealer to whom a Certificate of Entitlement has been granted for the purpose of availing of incentives
by way of exemption from payment of tax, shall file, -
(i) a return in Form in accordance with rule 17 for the period beginning with the first day of the month or as
the case may be first day of the quarter or first day of the six month period and ending with the date
immediately preceding the date of effect of the said certificate.
(ii) thereafter he shall file quarterly return in Form 224 and accordingly the first return after obtaining the
certificate of Entitlement shall be filed from the date of effect of the said certificate to the end of the quarter.
If the dealer has executed any works contract or has transferred the rights to use any goods for any purpose
or has part of the business under
composition then he shall not withstanding anything contained in sub rule (4) of rule 17 also file a quarterly
return in Form 223 in respect of such activities in addition to the return in form 224.
(iii) the last return shall be for the period beginning with the first date of the quarter and ending with the
date on which the said certificate ceases to be valid.
(iv) the next immediate return shall be for the period commencing on the date immediately succeeding the
date on which the said certificate ceases to be valid to the end of the quarter.
(v) for the balance period of the year, if any, he shall file quarterly returns.
(vi) the periodicity of the returns for the immediately succeeding year shall be decided in accordance with
rule 17 & for this purpose the provisions contained in sub-rule (4) of rule 17 shall apply to such dealer as
if the expression “ tax liability” of the dealer included the cumulative quantum of benefits availed by the
dealer.
(b) The provisions contained in sub-rule (a) shall mutatis mutandis apply
to a dealer to whom a certificate of Entitlement by way of deferment of payment of tax has
been granted.
Separate Vat Returns
Rule19-Separate returns
A dealer, may at his option, make an application in Form 211 to obtain permission to submit
separate returns in respect of the different constituents of his business or as the case may be different
places of his business, to the Joint Commissioner of Sales Tax (Head Quarters) II Maharashtra State,
Mumbai.
Rule 20- Complete and Self Consistent Return

A defect notice for the purpose of clause (b) of sub section (1) of section 20 shall be in Form 212
Any return shall be deemed to be complete and self consistent only if, all the items in the return pertaining
to gross receipts, turnover of sales and turnover of purchases, claim of set-off, amount of excess credit
carried forward and amount of excess credit claimed as refund,calculation of tax as also the details where
applicable regarding the cumulative quantum of benefits, amount of payment deferred, monetary ceiling,
period of incentives and refunds are filled in their appropriate places and are arithmetically self consistent
and if the details provided in the return regarding name , address, registration No., period of return, and the
entitlement certificate No. where applicable, are filled in fully.
Relevant penal provisions
Section 29
For non compliance to Notice issued by the authority

(7) where, any person or dealer has failed without reasonable cause to comply with any notice in
respect of any proceedings, the Commissioner may, after giving the person or dealer a reasonable
opportunity of being heard, by order in writing , impose on him, in addition to any tax payable
by him, a penalty equal to one thousand rupees.
For failure to file return within prescribed time
(8) where , any person or dealer has failed without reasonable cause to
file within the prescribed time, a return for any period as provided under section 20 , the
Commissioner may after giving the person or dealer a reasonable opportunity of being heard, by order in
writing, impose on him,
in addition to any tax payable by him, a sum of rupees two thousand by way of penalty. Such
penalty shall be without prejudice to any other
penalty, which may be imposed under this Act:
Provided that, if the return is filed before the initiation of the proceeding
for levy of penalty, the penalty shall be levied at rupees one thousand and
in an other case, the penalty shall be levied at rupees two thousand.
For filing incorrect & inconsistent return
(9) (c) Where a dealer has filed a return and such return is found to be not complete & self
consistent, then the commissioner may, after giving the dealer a reasonable opportunity of being heard
impose on him by order
in writing, a penalty of rupees one thousand . The levy of penalty shall be without prejudice
to any other penalty which may be imposed under this Act.
Limitation period for passing penalty order.
(11) No order levying penalty under the foregoing provisions of this

section shall be passed in respect of any period after 5 years from the end
of the year containing the said period.
Monitory limits for imposition of penalty
(12)No order levying penalty under any of the foregoing sub sections shall
be made:-
(a) by a Sales Tax Officer or an Asstt.Commissioner where the penalty exceeds Rs.5 lakhs except with the
prior approval of the Dy.Commr.
(b) by a Dy.Commr. Or Senior Dy.Commr. Where the penalty exceeds Rs.10 lakhs except with the prior
approval of the Joint Commr.
Provided that the nothing in this Sub section shall apply to any penalty which may be imposed by an
appellate authority.
Section 74 Offences And Penalties

(1) Whoever knowingly,--
(a) Not being a registered dealer under this Act, represents that he is or was a registered dealer when he sells
or buys goods or,
(b) furnishes a false return, or
(c) produces before the Commissioner or the Tribunal, a false bill, cash memorandum, voucher, declaration,
certificate or other document referred to in sub-section(4) of section 29, or
(d) keeps false account of the value of goods bought or sold by him in contravention of sub-section (1) of
section 63 ,or
(e) produces false accounts, registers or documents or knowingly furnishes false information, or
(f) issues to any person any certificate or declaration , under the Act,Rules or notifications, or a bill, cash
memorandum, voucher, delivery chalan, lorry receipt or other document which he knows or has reason to
believe to be false, or
(g) falsely represents that he is authorised under section 82 to appear before any authority in any
proceeding, shall on conviction be punished with rigorous imprisonment for a term which shall not be less
than one month but which may extend to one year and with fine.
(2) Whoever will fully attempts in any manner whatsoever to evade any tax leviable under this Act or
payment of any tax, penalty or interest under this Act shall on conviction be punished with rigorous
imprisonment which shall not be less than three months but which may extend to one year and with fine.
(3) Whoever ,--
(a) fails without sufficient cause, to comply with the requirements of sub-section(1) of section 14,or
(b) is engaged in business as a dealer without being registered under section 16, or
(c) fails without sufficient cause, to obtain in lieu of the existing certificate of registration of fresh certificate
of registration when required to do so as provided in sub-section(1) of section 17,or
(d) fails without sufficient cause, to furnish any information

required by section 18,or
(e) fails without sufficient cause to furnish a declaration or, as the case may be, a revised declaration as
provided in sub-section(1) of section 19 or fails without sufficient cause to communicate the permanent
account number obtained under the Income Tax Act, 1961 or, as the case may be, fails to
state whether he has applied for the same and fails without sufficient cause to provide the details of the
application as provided in sub-section (2) of section 19,or
(f) fails, without sufficient cause, to furnish any return or, as the case may be, a self consistent and fully
filled in return as required by section 20 by the date and in the manner prescribed,or
(g) fails without sufficient cause to pay the tax deductible at source or to deduct at source such tax, or fails
without sufficient cause to obtain the sales tax deduction account number or fails without sufficient cause to
file a return as required under the provisions of section 31,or
(h) fails without sufficient cause to comply with the requirements of the notice issued under sub-section(1)
of section 33,or
(i) fails without sufficient cause to comply with the requirements of any order issued under sub-section (1)
of section 35,or
(j) fails without sufficient cause to comply with the requirements of any order issued under sub-section (3)
of section 38,or
(k) fails without sufficient cause to comply with the requirements of section 42,or
(l) without reasonable cause, contravenes any of the provisions of section 60, or
(m) fails, without sufficient cause, to get his accounts audited or furnish the report of the audit, as required
under section 61,or
(n) fails, without sufficient cause to comply with requirements of section 63. or
(o) fails, without sufficient cause, to comply with the requirements of section 64,or
(p) fails without sufficient cause to comply with requirements of section 65
(q) fails, without sufficient cause, to comply with the requirements of section 66,or
(r) fails, without sufficient cause, to furnish any information or return required by section 70 by the date and
in the manner prescribed or willfully furnishes any information or return which he knows to be incorrect or
false, or
(s) fails, without sufficient cause, to issue a tax invoice, a bill or cash memorandum as required under
section 86,or
(t) contravenes, without reasonable cause, any of the conditions, subject to which the Certificate of
Entitlement is granted, or
(u) fails, without sufficient cause, to comply with any notice in respect of any proceedings, shall, on
conviction , be punished with simple imprisonment for a term
which may extend to six months and with fine.
(4) Whoever aids or abets or induces any person in commission of any act specified in sub-sections (1) and
(2) shall, on conviction, be punished with simple imprisonment which shall not be less than one month but
which may extend to one year and with fine and whoever abets or induces any person in commission of any
act specified in sub-section (3) shall on conviction be punished with simple imprisonment which may
extend to one month and with fine .
(5) Whoever commits any of the acts specified in sub-sections (1) to (4) and the offence is a continuing one
under any of the provisions of these sub-sections, shall, on conviction, be punished with daily fine not less
than rupees one hundred during the period of the continuance of the offence, in addition to the punishments
provided under this section.
(6) Where a dealer is accused of an offence specified in the sub-sections (1) or(2) or (3), the person deemed
to be the manager of the business of such dealer under section 19 shall also be deemed to be guilty of such
offence, unless he proves that the offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission thereof.
(7) In any prosecution for an offence under this section, which requires a culpable mental state on the part
of the accused, the court shall presume the existence of such mental state, but it shall be a defence for the
accused to prove the fact that he had no such mental state with respect to the act charged as an offence in
that prosecution.
Explanation— Culpable mental State includes intention, motive or knowledge of a fact or belief in or reason
to believe, a fact and a fact is said to be proved only when the court believes it to exist beyond reasonable
doubt and not merely when its existence is established by a preponderance of probability.
Payment of Tax etc.
Section 32
(1)Tax shall be paid in the manner herein provided and at such intervals as may be prescribed.
(2) A registered dealer furnishing return as required by Sec.20, shall pay in to the Government Treasury, in
such manner and at such intervals as may be prescribed the amount of tax due from him for the period
covered by a return which he is required to file along with the amount of interest and any other sum payable
by him.
(3)A registered dealer furnishing a revised return in accordance which sub section (4) of Section 20, when
the revised return shows that a larger amount of tax than, the tax already paid, is payable, shall first pay into
the Govt. Treasury the extra amount of tax.
(4)(a) (i) The amount of tax due where the return or revised return has been furnished without full payment
thereof shall be paid forthwith.
(ii)The amount of tax which it becomes necessary to pay on account
of the reduction in set off because of any contingency specified in the rules, shall be paid at the
time prescribed for making payment of tax for the period in which such contingency occurs.
(b) (i)The amount of tax due as per any order passed under any provision
of this Act for any period, less any sum already paid in respect of the said period ; and
The amount of interest or penalty or both, if any, levied under any provision of this Act; and
The sum, if any, forfeited and the amount of fine, if any, imposed under the Act or Rules; and
the amount of tax, penalty and interest demanded in the context of excess availment of incentives or
availment of incentives not due; and
any other amount due under this Act shall be paid by the person or dealer or the person liable therefore into
the Govt. Treasury within 30 days from the date of service of the notice issued by the Commr. in respect
thereof.
Provided that, the Commissioner may, in respect of any particular dealer

or person and for reasons to be recorded in writing, allow him to pay the Tax, penalty,
interest or the sum forfeited, by installment, but the grant of installment to pay tax shall be without
prejudice to the other provisions
of this Act including levy of penalty, or interest, or both.
Rule 41 Time for payment.

Every dealer required to furnish a return under Rule 17, or 18 whether monthly or as the case may be a fresh
or revised return in respect of any of the said periods, shall, on or before the date specified for submission of
such return pay into Govt. Treasury the tax due from him for the period covered by such return and interest,
if any, payable by him under this Act.
Any sum determined by way of compounding of an offence in accordance with section 78 shall, within the
time stated in the order determining such composition, be paid in the Govt. Treasury.
The person liable to pay any amount of fine imposed under sub-section (3) of section 14 or any other
provision of this act shall pay the same into Government treasury before the date specified in the notice
issued by the Commissioner or the tribunal in that behalf.
Rule-45 Method of Payment
(1) every payment of tax or interest or penalty or all of them payable
under rule 41 and the amount of balance of tax payable according to a
return or fresh or revised return and penalty and interest payable under
rule 41 shall be accompanied by the respective return-cum-chalan.
(2) Every payment of tax or interest or penalty or all of them not referred
to in sub -rule(1) and every payment of amount forfeited,composition money,fees and
fines imposed, or as the case may,every payment of amount of tax deducted at source
under sub- rule(1) of rule 40 shall be accompanied by a chalan in form 210. notwithstanding anything
contained
in sub-rule(1),the payment of tax interest or penalty due as per the fresh return or revised return
shall be accompanied by chalan in form 210
(3) the form accompanying the payments as aforesaid shall be duly filled in,signed
and verified by the payer and amount paid shall be stated both
in words and in figures in the space provided for that purpose in the respective form.
(4) The payments shall be made into Government treasury. The portion of
the concerned Form marked “for the payer “ shall be returned by the Government treasury to the
dealer duly receipted. and the portion of the Form marked “for the registering authority “ shall be
forwarded by the Government treasury to the registering authority specified in rule 17.
Where the payment is made in chalan in Form 210 of tax,interest or
penalty due as per the fresh return or revised return. The dealer shall
submit a self-attested copy of the said chalan to the authority to whom the said return is to be
submitted.”
(5)Subject to the provision of section 33 and 34, no payment as aforesaid shall be made to any officer
or authority appointed by or under
section 10.
(6)The installments granted ,if any, under one order shall be monthly installments, and for a
period not exceeding one year. The installment order shall specify the amount of tax,interest or
penalty which is to be paid and the date of payment and shall also specify the interest to be paid on
the said amount of tax on the said date of payment. The installment shall
be for the cumulative amount of tax,interest and penalty as also interest to
be paid on the amount of the said tax.
Rule 46 – Notice for Payment of tax not paid according to returns
Where a dealer has furnished a return or revised return under section 20, but has not first
paid into the Government treasury the whole of the
amount of tax,interest and penalty due or the extra amount due according
to such return,or as the case may be, the revised return, as required
under section 32. The Commissioner may by notice in Form 213 served on him require
him to pay forthwith the amount due from him according to the return or, as the case may be
the, revised return.
Deduction of tax at source
Section 31
(a) Subject to the provisions contained in clause (b), the Commissioner may, by a notification in the
Official gazette, subject to such conditions & restrictions as may be specified in the notification, require any
dealer or person or class of dealers or persons ( herein after in this section referred to as ' the employer') to
deduct the tax or such amount of tax as may be specified in the notification, payable on the purchases other
than the purchases to which section 8 applies, effected by them in the period or periods specified in the said
notifications.
Explanation---- For the purposes of this section, the tax payable on purchases shall mean the sum collected
separately from the said employer by way of sales tax by the supplier on the corresponding supplies effected
by him in the said period or periods and the deduction is to be made from the sums payable to the supplier
on account of the said supply.
(b)(i) The Commissioner may by a like notification require any class of employers to deduct tax or such
amount of tax as may be specified from and
out of the amount payable (excluding the amount , if any , separately charged as tax or service tax levied by
the Government of India, by the contractor) by such employer to a dealer to whom a Works Contract has
been awarded , towards execution of the said Works Contract :
Provided that , the quantum of such deduction shall not exceed the quantum of tax payable towards such
Works Contract;
Provided further that, no deduction shall be made from any payment made to any sub-contractor by a
principal contractor where the principal contractor has assigned the execution of any Works Contract , in
whole or in part , to the said sub-contractor .
Provided also that, no deduction as provided under this clause shall be made in respect of any sale or
purchase to which section 8 applies .
Explanation – where any payment in the nature of an advance payment towards the execution of a
Works Contract is made by an employer to a dealer and such amount is adjustable against the total
contract value
payable to the said dealer, then, for the purpose of this clause,the
advance payment shall be deemed to be the amount paid towards the execution of the works
contract only as and when such advance payment
is adjusted, in part or otherwise ,against the total amount payable
towards the works contract.
Where on an application being made by any contractor in this behalf, the Commissioner is satisfied that the
contract under reference is not a works contract which involves transfer of property in goods (Whether as
goods or in some other form) and therefore justifies no deduction at all, he shall issue such order, after
giving the applicant a reasonable opportunity of being heard as may be appropriate
Provided that, the Commissioner may, reject such application, or after

giving the contractor a reasonable opportunity of being heard, cancel or modify such order.
Provided further that, nothing in the said order shall affect the tax liability
of the contractor.
Where such order is produced by the contractor before the employer , the employer shall, not make any
deduction of tax, unless the order is
cancelled or modified by the Commissioner. If the order is cancelled or modified as provided the employer
shall make the deductions accordingly.
For the purpose of this section, where any amount of tax referred to in sub-section (1) is credited to any
account whether called the “suspense account” or by any other name, in the books of accounts of the
employer, such crediting shall be deemed to be credit of such tax to the account of the employer and the
provisions of this act shall apply accordingly.
*** Deleted
Any amount of any sum deducted in accordance with the provisions of this section and paid to the State
Government may be claimed as a payment of
tax by the person making said supply and credit for the payment may be claimed by the said person in the
period in which the certificate for the
payment is furnished to him by the person deducting tax in accordance with
the provision of this section.
Any employer deducting any sum in accordance with this section, shall pay within the prescribed time, the
sum so deducted to the credit of the State Government . If the employer does not deduct or after deducting
fails to pay the tax as required by this section, he shall be deemed not to have paid the tax within the time he
is required by or under the provisions of this act to pay it and all the provisions of this Act including the
provisions relating to interest shall apply mutatis mutandis to such unpaid tax.
The power to recover tax by deduction at source shall be without prejudice to any other mode of recovery.
Every person deducting tax in accordance with the provision of this section shall within such periods, as
may be prescribed, furnish to the person to whose account the credit of the tax is to be given under this
section, a certificate in prescribed form.
Deleted.
Where tax is deductible at source by any employer the person making the said supply shall not be called
upon to pay tax himself to the extent to which the tax has been deducted in respect of the said supply.
***Deleted.
Rule 40 - Deduction of Tax At Source
(a) Every employer who is required to deduct tax under clause (b) of sub-section (1) of section 31 shall
within 21 days from the expiry of the month during which tax is so required to be deducted, remit the full
amount of such tax due and deductible in return-cum-chalan in form 405 in to the Government Treasury
irrespective of the actual amount of tax deducted by him from such dealer.
(b) The employer required to remit tax, shall furnish a certificate in form 402 in respect of the amount so
remitted immediately after the deduction is made, to the dealer in respect of whom such deduction is made.
( c ) *** deleted
(d)Any employer issuing a certificate as required by clause (b) shall maintain for each year a separate
account in Form 404 showing the amount of tax deducted certificate of tax deduction issued and the
particulars of remittances made to the Government treasury and shall file a return in Form 405 with the
Joint Commissioner of Sales Tax (Administration) in whose jurisdiction the place of business of the
employer is situated within three months of the end of the year to which the return relates.
(a) An application for the purpose of sub-clause (ii) of clause (b) of sub-section (1) of section 31 shall be
made in Form 410 to the registering authority having jurisdiction over the dealer.
(b) The application shall be accompanied by self attested copies of the contract and other documents on the
basis of which the claim is made.
( c ) If the particulars and documents furnished by the dealer are correct and complete in all respects and
after making such inquiry as may be deemed necessary, the Commissioner is satisfied that the contract
under reference is
not a works contract which involves transfer or property in goods (whether as goods or in some other
form), he may after giving the applicant a reasonable opportunity of being heard either reject the
application or pass such order thereon as may be appropriate within one month of the receipt of the
application. A copy of such shall be sent to the employer awarding the contract.
****deleted
BEST JUDGMENT ASSESSMENT OF NON – FILER

(UNILATERAL ASSESSMENT )
Section 23 (1)
(1) Where a registered dealer fails to file a return in respect of any period
by the prescribed date, the commissioner may assess the dealer in
respect of the said period to the best of his judgment without serving a
notice for assessment and without affording an opportunity of being heard.
Provided that,if after the assessment order is passed,the dealer submits the return for the said
period along with evidence of payment of tax due
as per the return or submits evidence of return for the said period having been filed before
the passing of the assessment order along with
evidence of payment of tax, due as per the return, then the Commissioner shall cancel, by
order in writing, the said assessment order.
Provided further that, such cancellation shall be without prejudice to any interest or
penalty, that may be levied in respect of the said period and after such cancellation,the dealer may be
assessed in respect of the said period under the other provisions of this section.
Provides also that no order under this sub-section shall be passed after three years from the
end of the year containing the said period.
Production of Accounts & Documents
Section 64. (1) The Commissioner may, subject to such conditions

as may be prescribed, require any dealer to produce before him any
accounts or documents, or to furnish any information, relating to stocks of goods of, or to
sales, purchases and delivery of goods or to payments made
or received towards sales or purchases of goods by the dealer, or any other information
relating to his business, as may be necessary for the
purposes of this Act.
Rule 70. Form of notice for production of

documents etc.
When the Commissioner requires any dealer to produce any accounts or documents or to
furnish any information u/s 64, he shall issue a notice
therefor in Form 603.
Penalty for breach of any Rules
Rule 90.
A breach of any of these rules shall be punishable with fine which may
extend to two thousand rupees and when the offence is a continuing one, with a daily fine
not exceeding one hundred rupees during the
continuance of the offence.
Cancellation of Registration
Section 16 (6)
Where,—
(a) any business, in respect of which a certificate of registration has been issued under this section,
has been discontinued or otherwise disposed of, or has been transferred or
(b) the turnover of sales or the turnover of purchases of a registered dealer who has become liable to
pay tax under section 3 has during any year not exceeded the relevant limit specified in sub-section (4) of
section 3,
then in the case covered by clause (a), the dealer shall apply in the prescribed manner and
within the prescribed time, for cancellation of his registration to the Commissioner, and in the case
covered by clause (b), the dealer may apply, in the prescribed manner, for cancellation, of his registration
to the Commissioner; and thereupon the Commissioner may, after such inquiry as he deems fit and
subject to the rules, cancel the registration with effect from such date including any date earlier to the
date
of the order of cancellation as he considers fit having regard to the circumstances of the case.
The registration certificate cancelled under this sub-section shall be returned to the Commissioner
within the prescribed time:
Provided that, where the Commissioner is satisfied that any business in respect of which a
certificate has been issued
under this section has been discontinued or disposed of and the dealer has failed to apply
under clause (a) as aforesaid for cancellation of registration, the Commissioner may, after
giving the dealer a reasonable opportunity of being heard, cancel the registration with
effect from such date as he may fix to be the date in accordance with the rules, if any, from
which the business has been discontinued or disposed of or changed to a different
local area, as the case may be:
Provided further that, the cancellation of a certificate of registration on an application or

otherwise shall not affect the liability of the dealer to pay the tax including any penalty, amount
forfeited and interest due for any period ending on or before the date of cancellation whether such tax
including any penalty, amount forfeited and interest is assessed before the date of cancellation
but remains unpaid, or is assessed thereafter.
Rule 11(4) Cancellation of Certificate of Registration

Where the registration of a dealer is to be cancelled under the first
proviso to sub-section (6) of section 16, the Commissioner shall after
giving the dealer a reasonable opportunity of being heard, cancel the registration by an order in
writing with effect from such date as the Commissioner may fix to be the date on which the business
has been discontinued or transferred or disposed off as the case may be. A copy of such order
shall be served on the dealer.
(5) If the registration of a dealer is cancelled either on his application or under the first proviso to
sub-section (6) of section 16, the dealer shall surrender the certificate of registration and the copies
thereof, if any,
granted to him to the registering authority within fifteen days from the date
of receipt by him of the order canceling the registration.
Special mode of recovery

Section 33
(1) Notwithstanding anything contained in any law or contract to the contrary, the Commissioner may, on
noticing that there is an outstanding liability of tax, interest or penalty against a dealer or person, or on
whom a notice under sub-section (4) of section 32 has already been served, at any time, by notice in writing,
require, -
(a) any person from whom any amount of money is due, or may become due, to
the said dealer or person or
(b) any person who holds or may subsequently hold money for or on account of such
dealer or person,
to pay to the Commissioner, either forthwith upon the money becoming due or being held or within the time
specified in the notice (but not before the money becomes due or is held as aforesaid), an amount equal to
the amount due and outstanding from such dealer as aforesaid :
Provided that, no action under this sub-section shall be taken till the date prescribed for filing of
appeal, if the dealer makes an application in the prescribed form to the Commissioner before the said date
stating therein that he is proposing to file an appeal against the order in pursuance of which the said notice
under sub-section (4) of section 32 has been served on him.
Explanation :- For the purposes of this section, the amount of money due to a dealer from, or money held
for or an account of a dealer, by any person, shall be calculated after deducting therefrom such claims (if
any) lawfully subsisting, as may have fallen due for payment by such dealer to such person.
2. The Commissioner may, at any time, amend or revoke any such notice, or extend the time for
making any payment in pursuance of the notice.
3. Any person making any payment in compliance with a notice under this section shall be deemed to
have made the payment under the authority of the dealer or a person, and the receipt of the Commissioner
shall constitute a good and sufficient discharge of the liability of such person, to the extent of the amount
referred to in the receipt.
4. Any person discharging any liability to the dealer or person after receipt of the notice referred to in
this section, shall be personally liable to the Commissioner to the extent of the liability discharged, or the
extent of the liability of the dealer or a person for tax, penalty, interest and sum forfeited, whichever is less.
5. Where a person to whom a notice under this section is sent proves to the satisfaction of the
Commissioner that the sum demanded or any
part thereof is not due to the dealer or a person, or that he does not hold any money for or on account of the
dealer or a person, then, nothing contained in this section shall be deemed to require such person to pay any
such sum or part thereof, as the case may be, to the Commissioner.
6. Subject to the provisions of sub-section (5), any amount of money which a person is liable to pay to
the Commissioner, shall under sub-section (1) read with sub-section (4), if it remains unpaid, he recoverable
as if it is a sum demanding under section 32 and accordingly any notice served under this section shall be
deemed for the purposes of this Act to be a notice served under section 32 and the unpaid amounts shall be
recoverable as arrears of land revenue.
Rule 48 : Form of Notice for the purposes of Sub-section (1) of section 33 :

The notice for the purpose of sub-section (1) of section 33 shall be in Form-314.
CIRCULARS ISSUED BY THE DEPARTMENT:-
Internal Circulars
1)
Confidential
(Restricted circulation-for office use only)
Office of the
Commissioner of Sales Tax
Vikrikar Bhavan
Mazgaon, Mumbai 400010
Internal Circular
No. Addl. CST Enf C/(Advisory Visits A)/file- 63 Mumbai, dated 29th November
2006
Circular No 37A of 2006
Subject: - Formation of Voluntary Registration Follow Up Cell and Unregistered Periods Assessment Cell.
The Advisory Visit Cell has been created in the Registration Branch of the department. Feedback received
from the Advisory Visits indicates that many of the VRS dealers have not started the business even months
after registration and most of them are not filing returns. Similarly, many dealers either try to avoid the
mandatory advisory visit or do not produce/maintain the books of accounts and other relevant documents at
the time of visit. Some of the dealers have URD periods in which they are liable to pay taxes. Such dealers
too either try to avoid the visit or do not produce the books of accounts.
2. Now, it has been decided that two separate cells should be created within the existing Advisory
Visit Branch to tackle these dealers as follows:
(a) The Voluntary Follow up Cell will look after the follow up of VRS dealers and cancellation of
registration in deserving cases.
(b) The URD Assessment Cell will look after assessments of URD periods of dealers registered on or after
1st April 2005.
3. In Mumbai, the officers and staff have been already allocated for the purpose of these cells. In
mofussil area, the concerned administrative Joint Commissioners should take review of registrations within
their branches and make appropriate allocation need based allocation of the officers and staff for these cells.
4. Functions to be carried out by Voluntary Registration Follow

Up Cell
The basic objective of creating the Follow Up Cell is to cancel registrations of non-serious voluntary dealers
and follow up of returns of VRS
dealers. The Follow Up Cell will check the returns with the books of accounts of all the dealers who have
taken registration under Voluntary Registration Scheme during the period from 1st April 2005 to 31st March
2006. This cell will also be responsible for cancellation of registration of non serious/bogus dealers. The
officers working in this cell will call the dealers and verify books of accounts along with the returns filed by
them. To do so, the officer in the cell will, inter alia,
a) Issue notice in Form 603 to all the VRS dealers registered during 1st April 2005 to 31st March 2006
and call the books of accounts and other relevant documents including the returns due up to the date of
notice.
b) If the dealer does not attend or attends without books of accounts, the officer will issue notice for levy of
penalty under Section 29(7) for non- compliance of notice or under Rule 90 for breach of Rules, and a Show
Cause Notice for cancellation of registration.
c) Where it is noticed that the dealer has not done business or discontinued the business, the officer will
cancel the registrations after giving a hearing to the dealer.
d) If serious revenue implication/threat to the system is found, he will send such cases to the
Business Audit/Enforcement Branch after taking necessary permission from the concerned JC.
e) Issue notice in Form 213 for short payments made with the returns, if any.
f) Pass unilateral assessment order in case of dealers doing business but not filing returns.
g) Pass assessment orders, if the verification of books results into dues and the dealer does not accept such
dues.
h) Transfer the recovery to the Recovery Branch along with the recovery papers.
Transfer registration record to the Record Section after completion of all actions.
The officers in this cell will initiate actions as mentioned above against the dealers registered
on or after 1st April 2006, who are either avoiding advisory visits or not producing books of accounts at the
time of advisory visits.
5.Functions to be carried out by Unregistered Periods Assessment Cell
The officers in this cell will be responsible to pass assessment orders for the unregistered periods of late
registered dealers recommended by the Advisory Visit Cell. To carry out this function, the officer will inter
alia,
a) Issue notice to the dealer calling for assessment of unregistered periods.
b) Verify the books of accounts.
c) Pass the assessment order.
d) Serve the order and notice of demand to the dealer.
e) Transfer the recovery to the Recovery Branch along with the recovery papers.
f) Transfer registration record to the Record Section after completion of all actions.
These instructions must be followed scrupulously.
Sd/-
(B. C. Khatua)
Maharashtra State, Mumbai.
Trade Circulars :
1)
8th floor, Vikrikar Bhavan,
Mazgaon, Mumbai-400010.
TRADE CIRCULAR
To,
________________
________________
No. VAT-2005/Act/VD-1 Mumbai Dt.: 25.5.2005

Trade Cir.- 10 T of 2005
Sub: Filing of Returns.

Gentlemen/Sir/Madam,
Rule 17 of the Maharashtra Value Added Rules 2005 deals with submission of Returns.
Sub-rule [2] of that Rule specifies the authorities to whom the Returns are to be submitted.
Where any amount is due and payable according to the Return, the Return-cum-Chalan is to be furnished to
the Government Treasury. Where no amount is due and payable according to the Return (a Nil Return) the
Return is to be furnished to the Registering Authority. In case of consolidated returns, the consolidated
return is to be furnished to the authority specified by the Commissioner of Sales Tax while permitting the
consolidated returns to be filed. In case of a non resident dealer, the Returns have to be filed with the
Registering authority, Non-Resident Circle, Mumbai.
Under the B.S.T.Act, 1959, as per administrative arrangement, all Nil returns were accepted in a designated
office in each city. Thus for example in Mumbai all Nil returns were accepted in the Returns Branch on the
Ground floor at Vikrikar Bhavan, Mazgaon.
It is now clarified that the administrative arrangement continues after
1st April 2005. In other words Nil Returns are to be filed with the Returns Branch Office as stated above.
In particular, the Nil returns should not be filed with the assessing officers. If due to inadvertence any
assessing officer has accepted Nil returns, he should then immediately forward the Nil returns so accepted
to the Returns Branch. The dealers concerned are requested, to henceforth file the Nil returns with the
Returns Branch only.
4) This circular cannot be made use for legal interpretation of provisions of law,
as it is clarificatory in nature. If any member of the trade has any doubt, he
may refer the matter to this office for further clarification.
5) You are requested to bring the contents of this circular to the notice of all the
members of your association.
Yours faithfully,
Sd/-
(SANJEEV KUMAR)
Commissioner of Sales Tax,
No. VAT-2005/Act/VD-1 Mumbai Dt.: 25.5.2005

Trade Cir.- 10T of 2005
2)
8th floor, Vikrikar Bhavan ,
Mazgaon, Mumbai 400 010.
TRADE CIRCULAR
To
----------------------
----------------------
No. VAT -2005/ACT/VD-1 Mumbai, Dt. 24th August 2005.
Circular No 25 T of 2005
Sub. : Filing of returns for the month of July 2005.
The date of filing of return for the month of July 2005 is 25th August 2005. Many representations
have been received by the State Government to extend this date due to unprecedented rainfall and flood
conditions in Maharashtra in the month of July and August 2005. Therefore, date of filing of return for the
month of July 2005 under Maharashtra Value Added Tax Act, 2002; Central Sales Tax Act, 1956 and other
Acts administered by the Sales Tax Department is extended to 31st August 2005.
You are requested to bring the contents of this circular to the notice of all the members of your
association. It may also be noted that no further extension of date will be done for both the above
mentioned purposes.
Yours faithfully,
(V.N. MORE)
Addl. Commissioner of Sales Tax,
3) 8th floor, Vikrikar Bhavan,
Mazgaon, Mumbai – 400 010.
TRADE CIRCULAR.
To
………………………
………………………
No.VAT/AMD-1005/1B/Adm-3 Mumbai Dt: 26.04.2006

Trade Cir- 14 T of 2006
Sub: Filing of returns in new forms 221,222,223 224 and 225.
Ref: Government Notification No. STR. VAT-1506/CR-5/ Taxation-1

dated 3rd April 2006.
Government of Maharashtra has issued a notification, dated 3rd April 2006 as referred above, by
virtue of which some amendments are made in rule 17 and rule 18 of the Maharashtra Value Added Tax
Rules, 2005. The salient features of the amendments are explained below.
1. New returns should be filed in forms 221,222,223, 224 and 225, as appropriate, which can be
obtained from the Sales Tax Department or can be downloaded from website
www.vat.maharashtra.gov.in. They can also be obtained privately but should conform with the details of
the forms issued by the Sales Tax Department and paper used should be of white colour, A4 size and
minimum thickness of 70 g.s.m. or of the executive bond variety.
2. The returns should be in the form mentioned in column (2) of the table below for the dealers
mentioned in column (3).
Sr. No. Form No. Category of dealers who should file the return.
(1) 222 All dealers who have opted for composition of tax whose entire turnover
is under composition other than works contractors opting for composition
and dealers opting for composition for part of their business.
(2) 223 (a) All dealers who are executing works contract, whether partly or
fully and whether or not they opt for composition.
(b) All dealers who are engaged in the activity of transfer of the right
to use any goods for any purpose whether partly or fully.
All dealers who are partly opting for composition.
(3)
224 All dealers under Package Scheme of Incentives who are holding
valid certificate of entitlement.
(4) 225 Notified oil companies.
(5) 221 All dealers, other than mentioned in Sr.No.(1) to (4).
3. Some of the queries related to the amendments are clarified below:
1) A notified oil company should file return in Form 225. But if the company
is also doing works contract or doing leasing work then the company should also file return in
form 223 for the same period for the works contract or leasing business.
2)A dealer covered under Package Scheme of Incentives holding valid certificate of entitlement
should file his return in form 224. However, if he also does works contract or leasing work, then he
should also file a return in form 223.
A general dealer is liable to file a return in form 221. But if he is also doing business of execution of works
contract or transfer of right to use any goods for any purpose or has opted for composition for part of his
business, then he should file return only in form 223 and not in form 221.
Dealers who have not filed returns in respect of any period ending on or before 31st March 2006 before 31st
March 2006, should invariably file return in form/s mentioned in the column (2) of the table above and not
in the old Forms.
Every registered dealer who is required to file a return wherein tax including interest and/or penalty is due
and payable, should file it with the Government Treasury by making a payment under rule 45.
A notified oil company should file a copy of its return in Form 225 with the Joint Commissioner of Sales
Tax, Nariman Point Dn. within 3 days of filing of the return-cum-chalan in Form 225 with Government
Treasury. They should also make an ad-hoc payment of 80% of the tax paid in the previous month within
15 days of the end of month to which return relates.
If no tax, interest or penalty is payable, then return should be filed
(a) to the registering authority (non-resident circle) Mumbai, if the dealer has been registered by such
authority, or
(b) to the registering authority having jurisdiction over the principal place of business of the dealer; or
(c) to each of the registering authority where dealer is holding valid certificate of
Entitlement under any Package Scheme of Incentives
except Power Generation Promotion Policy, 1998.
(d) in any other case, to the registering authority within whose jurisdiction the place or
places of business are situated.
5. Sub-rule (3) of rule 18 is substituted by new sub-rule (3) with effect from 1st April 2006. This rule is
related to the dealers holding valid certificate of Entitlement under any Package Scheme of Incentives by
way of exemption as well as deferment mode.
These dealers should file their initial return in which period the Certificate of Entitlement has been granted
as per table shown above from the period beginning with the first day of the month, or first day of the
quarter or first day of the six month period, as the case may be, and ending with the date immediately
preceding date of effect of the Certificate of Entitlement.
Thereafter such dealers should file quarterly return in Form 224, and the first return after obtaining the
certificate of Entitlement should be filed from the date of effect of the said certificate to the end of the
quarter. If such dealers have executed any works contract or have transferred the right to use any goods for
any purpose or have part of their business under composition, they should file a quarterly return in Form
223 in respect of such activities in addition to the return in Form 224.
Such dealers should file last return for the period beginning with the first day of quarter and ending with the
date on which the Certificate of Entitlement ceases to be valid. Next immediate return should be filed for
the period commencing on the date immediately succeeding the date on which the said certificate ceases to
be valid to the end of the quarter. For the balance period in the year, if any remains, quarterly return should
be filed.
Periodicity of the return for the immediately succeeding year should be decided in accordance with rule 17
and for this purpose “tax liability” shall include cumulative quantum of benefit availed of by the dealer.
6. This circular cannot be made use of for legal interpretation of the provisions
of law, as it is clarificatory in nature. If any member of the trade has any
doubt, he may refer the matter to this office for further clarification.
7. You are requested to bring the contents of this circular to the notice of the
members of your association.
Yours faithfully,
(B. C. Khatua)
No.VAT/AMD-1005/1B/Adm-3 Mumbai Dt:
Trade Cir- 14 T of 2006
4) 8th floor, Vikrikar Bhavan,

TRADE CIRCULAR
To
…………………………
…………………………
No.VAT-1006/137/Adm/3 Mumbai, Dt. 3.10.2006
Trade Cir. No. 29T of 2006
Sub: Forms of Chalans to be used in respect of payment for

the periods upto 31.3.2005 after introduction of
Maharashtra Value Added Tax Act, 2002.
After introduction of VAT with effect from 01.04.2005, it has been the general
understanding of the dealers that payments of assessment dues, appeal filing fees, part payment etc. should
be in form 210 under Maharashtra Value Added Tax Act, 2002.
2. It would, however, appear that some appellate authorities are insisting payments in respect
of past periods upto 31.3.2005 to be made in chalan form N-25 prescribed under the Bombay Sales Tax Act,
1959 only. Appellants are asked to re-deposit the amount in Chalan in form N-25 under Bombay Sales Tax
Act, 1959 and get refund of the amount paid in form 210 under the VAT Act.
3. On administrative ground, it has been decided that such payments for the past periods upto
31.03.2005 may be made either in form N-25 prescribed under the B.S.T.Act, 1959 or in Chalan in form
210. Both types of payments would be accepted as payments made under repealed B.S.T. Act in form 210
shows the earlier R.C. No. and period.
4. This circular cannot be made use of for legal interpretation of provisions of law as it is
clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for
further clarification.
5. You are requested to bring the contents of this circular to the notice of the members of your
association.
Yours faithfully,
(B. C. Khatua)
No.VAT-1006/137/Adm/3 Mumbai, Dt. 3.10.2006

Trade Cir. No. 29 T of 2006
5)
8th floor, Vikrikar Bhavan,
Mazgaon, Mumbai 400010.
Trade Circular
To
..........................................
..........................................
No.VAT/AMD-1006/1B/Adm-3 Mumbai, dated 10.10.2006

No. Trade Cir. No. 30 T of 2006
Sub: Maharashtra Value Added Tax (Fourth Amendment)
Rules, 2006.
Ref : Government Notification No. STR-1506/CR-38/Taxation-
1 dated 8th September 2006.
The Maharashtra Value Added Tax Rules, 2005 have been amended, by the Maharashtra Value Added Tax
(Fourth Amendment) Rules, 2006, amongst other purposes, to give effect to the Maharashtra Tax Laws
(Levy, Amendment and Validation) Act, 2006 (Act No. XXXII of 2006). The salient features of the
amendments are briefly explained below:-
Amendment of Rule 8:
Clause (c) of sub-rule (1) is deleted. By virtue of this amendment, a dealer would not be granted
Maharashtra VAT registration certificate merely on the ground that he has become liable to be registered
under Central Sales Tax Act, 1956.
Clause (d) of sub-rule (1) is substituted to provide for a period of 60 days for making application for
registration if the business is succeeded due to death and for a period of 30 days if the business is succeeded
on account of any other event.
Clause (e) of sub-rule (1) is deleted. It is now not necessary for any dealer to apply for registration merely
on account of shifting of place of business to a different local area. The rule is amended accordingly.
Sub-rule (3) is amended to provide that a single application is to be made by a dealer for all his places of
business including any place for which he has obtained a Certificate of Entitlement under any Package
Scheme of Incentives.
Amendment to sub-rule (7) is technical in nature.
Sub-rule (11) and (12)-

Clause (a) of sub-rule (11) is deleted and a new sub-rule, viz., sub- rule (12)
is added.
By this amendment, it is made mandatory to submit the Income Tax Permanent Account
Number (PAN) at the time of making application for registration for both categories of applicants (i.e.,
voluntary as well as
those who apply after crossing the prescribed limit of turnover). However,
this provision is not applicable to the dealers specified at serial numbers

(i), (ii), (iii), (iv) and (v) in the Explanation to clause (8) of section 2.
Amendment of Rule 9:-
(i) Clause (c) of sub-rule (2) is deleted. The amendment is technical in nature and is made to give effect to
the deletion of clause (c) of sub-rule (1) of rule 8.
(ii) Clause (d) of sub-rule (2) is substituted to give effect to the amendment made in sub-rule (1) of rule 8.
(iii) Clause (e) is deleted as now it is not required to obtain a new certificate of registration merely because
of change of place of business.
(3) Amendment of Rule 10:
A new sub-rule (2) is added so that after a day notified by the Commissioner, every registered dealer
will be given one hologram for each place of his business which will identify him as a registered dealer.
The registered dealer should securely affix and display the hologram at a prominent and clearly visible
place near the entrance of his each place of business.
(4) Amendment of Rule 11:-
This amendment is technical in nature and dispenses with the requirement of canceling the
registration due to change in place of business.
Amendment of Rule 17:
In sub-rule (2), clauses (c) and (d) are added. By virtue of clause (c), a
dealer who has obtained a permission under rule 19 to file separate
returns can file separate returns for those of his places of business or for
those constituents of his business, as the case may be, in respect of
which a permission to file separate returns has been obtained, to the
appropriate registering authority. However, the separate returns can be
filed only after obtaining permission from the Commissioner of Sales Tax,
not otherwise.
By virtue of clause (d), a dealer filing a fresh or revised return where any amount is due as per the fresh or
revised return, shall first pay such amount in Government Treasury and attach a self attested copy of the
chalan in respect of the said payment with the fresh or revised return to be filed with the appropriate
registering authority.
Sub-rule (4) is substituted. By virtue of this amendment, a new periodicity of returns has been provided
which is as under:
(a) A retailer who has opted for composition shall file a six monthly return within 21 days from the end of
the period of the relevant six months.
(b) A registered dealer whose tax liability during the previous year was Rs.36000/- or less or whose
entitlement for refund during
the previous year was Rs.36,000/- or less shall file a six monthly return within 21 days from the end of the
relevant
period of six months.
(c) A registered dealer other than those covered by (a) and (b) above, whose tax liability during the
previous year, or as the case may be, whose entitlement for refund during the previous year has exceeded
rupees one lakh shall file monthly returns within 21 days from the end of the relevant month.
(d) All other registered dealers shall file quarterly returns.

Explanations I to IV have been added to sub-rule (4), which clarify the meaning of the expressions ‘tax
liability,’ ‘entitlement of refund,’ ‘period of six monthly return,’ ‘separate returns for Package Scheme of
Incentive etc.’ These are briefly explained as follows:-
For the purpose of Rule 17, “tax liability” means the aggregate of all tax liability under C.S.T. Act, 1956
and MVAT Act, 2002 for all the places of business in the State after adjustment of set-off claimed by the
dealer, and “Entitlement for refund” means the net refund payable to the dealer in respect of all his places
of business under the MVAT Act, 2002 and the C.S.T. Act, 1956 after adjustment of set-off.
First six monthly return shall be for the period from 1st April to 30th September and second six monthly
return shall be for the period from 1st October to 31st March of every financial year.
A dealer holding “certificate of entitlement” is required under rule 18 to file quarterly returns. If he has
received permission to file separate return in respect of any other place of business or another constituent of
his business, then he shall file quarterly returns for his separate place(s) of business, or separate
constituent(s) of his business.
The new periodicity would be applicable in respect of all periods ending on or after 8th September 2006.
In sub-rule (2), the words relating to change of place of business are deleted. This amendment
is technical in nature.
Rule 19 is substituted by a new rule. The provision for consolidated returns is deleted. Now it is
provided that to file separate returns, a dealer may apply and obtain permission to file separate returns for
different places of his business or different constituents of his business. This application is to be made to
the Joint Commissioner of Sales Tax, (Head Quarter) II, Maharashtra State, Vikrikar Bhavan, Mazgaon,
Mumbai- 400 010.
In rule 20, certain words are substituted in view of the changes earlier made to the forms of
returns so as to give clear guidelines as to what a complete and self consistent return would be.
The existing portion is re-numbered as sub-rule (1). The newly added sub- rule (2) provides
the application Form 316 for cancellation of assessment order as provided in the newly inserted sub-
section (11) of section 23.
Rule 39 is substituted. Sub-rule (1) provides for Form 412 for notice of forfeiture under
sub-section (10) of section 29 and Form 420 as the form of notice to be published in the Official
Gazette for the information of the concerned persons where order of forfeiture is made.
In sub-rule (1), clause (a) is substituted. A provision is now made
for payment of tax deducted at source (TDS) within 21 days from the end of the month, in
which tax is required to be deducted. A separate
chalan in Form 405 is now provided for this purpose.

Clause (c) of sub-rule (1) is deleted. This dispenses with the requirement of sending a statement in Form
403 to the departmental authorities.
Sub-rule (2) is substituted. By virtue of this amendment, it is now provided that a contractor can apply in
Form 410 for a certificate of no deduction of tax at source if the contract is not a works contract. If the
particulars and documents furnished by the dealer are correct and complete and the Commissioner feels that
it is not a works contract, then he shall grant such certificate and a copy of such certificate will be sent to the
employer awarding such contract.
Sub-rule (3) is deleted. Now the employer who is liable to deduct tax is not required to apply for allotment
of Tax Deduction Account Number.
The words ‘fresh and revised returns’ are added. The provision regarding time for payment is now
equally applicable to fresh or revised returns.
In sub-rule (1), the words ‘fresh return’ are added to make it clear that the provisions regarding method of
payment laid down in the rule apply to fresh returns also.
Sub-rule (2) is substituted.
It is now provided that all payments other than those with the return, shall be made in Form 210 or, as the
case may be, in Form 405 [for TDS payments]
In sub-rule (6), the amendment provides that the installment order would specify the amount of tax,
interest or penalty and date of payment as also the interest due on tax paid by installments.
Rule 47 is substituted. A New form of intimation in Form 418 is now provided for the purpose of sub-
section (6) of section 32. The form for application for refund of forfeited amount will continue to be Form
413.
(i) In sub-rule (1), it is now specified that claim and grant of set off under this rule will not be subject to
the rules 53 & 54 (i.e., rules regarding reduction and non-admissibility of set-off).
(ii) In sub-rule (2) in clause (b), it has been now added that if the
goods in stock are subjected to the processes enumerated in rule
3 of the B.S.T. Rules, 1959 and such processed goods are sold before 31st December 2005
or are used in the packing of goods so sold, then set off would be available on the goods in the opening
stock and on purchases of packing material in stock.
(iii) An Explanation is added to the clauses (b) and (c). It is now clarified that for the purposes of
these clauses, sale will also
include branch transfers to own place of business in another State or to the place of business
of principal if the dealer is a commission agent.

(i) In clause (a) of sub-rule (1), the word ‘tax’ is substituted for the words ‘Sales Tax’. By virtue of this
amendment, it is now clarified that it is possible for purchasing employer-dealers to claim set off of
composition amount charged by works contractors.
(ii) In clause (a), an amendment is made to clarify that set off is available on the purchases of goods which
are debited to the profit and loss account or trading account.
(i) In clause (a) of sub-rule (2), an Explanation is added by virtue of which it is now provided that
a dealer who is a manufacturer of sugar or fabric covered by entry 45 of schedule A and which goods are
exported out of India, can get full set off without retention of 4%, which is otherwise applicable to
manufacture of tax-free goods. This amendment is retrospective and is w.e.f. 1st April 2005.
(ii) In sub-rule (3), clauses (a) and (b) are added whereby it is now provided that the retention in
case of ‘B’ schedule goods which are branch transferred would be 1% in so far as purchases of
corresponding taxable goods are covered by schedule B. As per clause (b), if the goods purchased are
covered by the entry 29 of schedule C and are dispatched outside the State in the same form in which they
were purchased, then purchase price for the purpose of this sub-rule would be the actual purchase price and
not the MRP printed on the package containing the said goods. These amendments are w.e.f. 1st April
2005.
(iii) It is also provided that the deduction of set off on account of branch transfer would not be
applicable if the dispatched goods are brought back to the State within six months of the date of dispatch
whether after processing or otherwise. This amendment is w.e.f. 1st April 2005.
(iv) In sub-rule (4) which deals with the set-off available to a works contractor who has opted for
composition, the following is provided.
The amount of set off, other than that relating to capital assets and on the goods in which property
is not transferred, shall be reduced and the available set-off shall be calculated by multiplying it by 16/25
where dealer has opted for composition @ 8% of contract value and for the periods starting after 20.6.2006,
by reducing the set-off by 4% of the purchase price where the dealer has opted for composition @ 5% of the
contract value of construction contracts.
(v) Sub-rule (6) is substituted. By virtue of this amendment, it is now provided that if out of the
gross receipts of the dealer in any year,
the receipts on account of sale are less than 50% of the gross receipts then the dealer would be entitled to
claim set off only on those purchases effected in that year where the corresponding goods are sold or
consigned within six months of the date of purchase and on the purchases of packing materials. In the case
of hotels and clubs, purchase of capital assets and consumables pertaining to the kitchens and service of
food and drink are eligible for set off. An Explanation is provided at the end of sub-rule (6), whereby it is
clarified that the receipts relating to branch transfer will not be treated as receipts for the purpose of this
sub-rule.
(vi) In sub-rule (7), an Explanation is added whereby it is clarified that in case of

Liquor dealers the “actual sale price” means sale price exclusive of the element of tax
where tax is charged separately and where tax is not charged separately, the sale price
will mean price arrived at as per reduction of sale price under rule 57(1).
(vii) A new sub-rule (7A) is added after sub-rule (7), which now enables a dealer to
claim set off in excess of 4% on office equipment, furniture and fixtures. These goods were
earlier under the negative list of set off.
(18) Amendment of rule 54:
In clause (a), the words “being passenger vehicles” are substituted for greater clarity in place of the words
“not being goods vehicles”.
Existing clause (f) is substituted w. e. f. 01-04-05. It is provided that set off on purchase of goods of
incorporeal or intangible nature other than those mentioned in clause (f) would not be admissible. A new
item, viz. “copy right which is resold within twelve months from the date of purchase” is added in the list
of intangible goods eligible for set-off.
Clause (g) is substituted. It is now clarified that if purchases are effected by the employer by way of works
contract which results in immovable property, then set off would not be admissible on corresponding
purchases. However, this clause will not be applicable to plant & machinery.
Clause (h) is substituted. This clause denies set off on any purchases which are not resold and which are
used by the dealer for the erection of immovable property (other than plant & machinery).
Clause (i) is substituted. The new clause denies set off on purchases of IMFL or country liquor if the dealer
has opted for composition under sub-section (2) of section 42.
Clause (j) is added.
This clause denies set off on purchases of mandap, tarpaulin, pandal, shamiana, decoration of such
mandap, pandal or shamiana and furniture, fixtures, lights and light fittings, floor coverings, utensils and
other articles ordinarily used alongwith a mandap, pandal or shamiana if the purchasing dealer has opted
for composition of tax under sub-section (4) of section 42.
(vii) Clause (k) is added, which denies set-off to a hotelier on purchases made by such dealer
which are treated by him as capital assets and which
do not pertain to the supply by way of or as part of service of food and
drinks. [e.g. curtains, mattress etc. used in hotels.]
(19) Amendment of rule 55
In sub-rule (1) clause (a) is substituted. It is now provided that if a dealer has obtained registration in any
particular financial year, then he would be eligible to claim set-off in respect of the purchases effected
prior to date of registration if the goods purchased are treated as capital assets or are used, consumed
disposed or sold after the date of registration.
In clause (b), the word “sales tax” is replaced by ‘tax’. By virtue of this amendment, it is clarified that, the
dealer can claim set off of the composition amount charged by works contractor.
Sub-rule (3) is substituted. This new sub-rule provides for adjustment of set off. The set off can be
adjusted against the tax payable according to the return, against CST payable towards that period or against
the entry tax payable under the Maharashtra Tax on Entry of Goods into Local Areas Act, 2003.
Paragraph (b) of sub-rule (3) provides that after adjustment as provided in para (a), the dealer may claim
refund of the excess or can carry forward the excess towards tax payable as per return to be filed for any
subsequent period in the same year including the tax under CST Act or the Maharashtra Tax on Entry of
Goods into Local Areas Act, 2003.
New sub-rule (7) is added, which enables a dealer succeeding the business to take credit of any set off that
is carried forward in the event of death, transfer, or disposal of the business.
(i) In sub-rule (1), some printing mistakes are corrected.

(ii) In sub-rule (2), the amendment is clarificatory in nature.
(iii) A proviso to rule 57 is inserted, which specifies that the deduction
under the rule will be available only when the purchases are supported
by tax invoice or bill as provided in sub-rule (2A) of rule 77.
(i) In clause (a), the words “where labour and service done in relation to the
goods is subsequent to the said transfer of property” are
deleted.
(ii) In the table, one more contract, namely “Annual maintenance contract” is
added for which the deduction is forty percent. The amount to be deducted from the
contract price for “any other works contract” is now revised to 25 % from the earlier
amount of 20%.
(iii) After the table, it is now clarified that the percentage provided in the
table is to be applied after deducting the price of sub-contract on which tax is paid by the
sub-contractor and the quantum of tax separately charged by the contractor.
Rule 60 is substituted. It now specifies that application Form for refund
shall be Form 501, the refund order shall be passed in Form 502, refund payment order in Form
503 or Form 504, and refund adjustment order in Form 506.
Rule 61 is substituted. The rule now specifies that the bank guarantee should be obtained
from any branch of a bank notified as Government
Treasury and the maximum period for the guarantee would be of
36 months. The bank guarantee should be submitted to the respective
Joint Commissioners in charge of grant of refunds.
In this rule, two entries are substituted in the Table. Fee for
registration is increased from Rs. one hundred to Rs. five hundred, and in entry 23, provision
is made for application for furnishing separate returns which is in Form 211.

The amendment is technical in nature.
It is now provided that a reseller selling goods originally
manufactured by an Exemption unit will print a certificate on his tax invoice or bill as provided
in the rule.
In sub-rule (2), clause (b) is substituted. The rule is about CQB calculation in respect of inter-state sales and
provides that CQB on inter-State sales would be the same as what would have been the CST liability if the
dealer was not holding a certificate of Entitlement.
An Explanation V is provided which specifies that for the purpose of calculation of CQB under 1988 and
1993 schemes, the term ‘goods manufactured’ shall include “credit of Duty Entitlement Pass Book” which
is earned by the said E.C. holder by exporting goods outside India, manufactured in the Eligible Unit.
(i) In sub-rule (1), the words ‘except the new Package Scheme of Incentives for Tourism
Project – 1999’ are now included. This means that the dealer under the said scheme would not be
entitled for refund under this rule.
(ii) Sub-rule (2) is substituted. The new sub-rule specifies that the deductions/retentions in
grant of set-off applicable for a normal dealer in the event of the following will not be applicable to
the dealer under the Exemption mode under the Package Scheme of Incentive
(a) of any taxable goods purchased by it and used as fuel.
(b) of any taxable goods (other than those used by it as fuel) and used in the manufacture of
tax free goods
(c) of any taxable goods (other than those used by it as fuel or used in the manufacture of tax
free goods), if the corresponding taxable goods are dispatched by it outside the State, not by way of
sale, to its own place of business or of its agent.
(d) It is further provided that if the goods purchased are covered by any entry in Schedule
B, then the refund of tax shall be one percent of
purchase price.
(iii) Sub-rule (3) is deleted. The refund mechanism for the units
holding entitlement certificate would be as per rule 60.
(iv) In sub-rule (4), it has been provided that the set-off would be
available to the dealer under new Package Scheme of Incentives for
Tourism Project – 1999 w.e.f. 01.04.2005. It is also necessary to make a retrospective
amendment to Rule 54 in this context. Accordingly, a proposal is being submitted to Government.

(i) in clause (a) the words “news paper” are added.
(ii) A new clause (c) is added, which specifies that certain processes
would be manufacturing processes for the purposes of rules relating to Package Scheme of
Incentives when used in respect of units certified by
SICOM, or Directorate of Industries or the District Industries Centre, as the case may be, w.e.f.
01.04.2005., namely:-
(a) Ginning of seed cotton in order to separate seed and cotton lint;
(b) Conversion of ginned cotton to baled cotton;
(c) Preparing butter from cream;
(d) Preparing ghee from butter.
In sub-rule (2), clauses (f) and (g) are substituted. It is now provided that,-
(a) the condition of filing of return with the concerned authority mentioned in the certificate
of Entitlement is done away with. Now the Eligible Unit is to file return with each of the registering
authority having
jurisdiction over each of the respective places of business. However, this is not applicable to
the dealers who are under Package Scheme of Incentives under the Power Generation Promotion Policy,
1998.
b) clause (g) is substituted. The new clause states that the eligible Industrial Unit shall file
return covering the sales and purchases pertaining to deferment of tax and file separate return for other
transactions of sales and purchase not pertaining to deferment of tax.
The newly substituted clauses apply with necessary differences to exemption units also.
(31). In Rule 84, a Table is provided for giving the NPV values of deferred tax. There were some
printing mistakes in the earlier Table which were brought to the notice of all concerned for the Trade
by circular No. 31T of 2005 dated 3.10.2005. The table is now substituted by a new table with
retrospective effect.
(32). Rule 87 is amended to provide for service of notice or order by sending a scanned copy by e-mail. It
is also provided that notices and orders may be sent by employing a courier agency.
(33). In rule 88, an amendment is made for providing the rate of interest when refund granted in excess is
required to be recovered.
(34). This circular cannot be made use of for legal interpretation of provisions of law as it is
clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office
for further clarification.
(35). You are requested to bring the contents of this circular to the notice of he members of your
association.
Yours faithfully,
(B.C.KHATUA)
No.VAT/AMD-1006/1B/Adm-3 Mumbai, dated 10.10.2006

Circular No. 30 T of 2006
6)
829, 8th floor, Vikrikar Bhavan,

Mazgaon, Mumbai – 400 010.
TRADE CIRCULAR.
To
……………………………….
……………………………
………………………..
No.VAT/ADM-1006/1B/Adm-3 Mumbai Dt : 16.10.2006

Trade Cir. 31 T of 2006
Sub: Periodicity of returns;

amendment of Rule 17 of the Maharashtra Value Added Tax Rules, 2005.
Ref : Trade Cir No.VAT/AMD-1006/1B/Adm-3

No.Trade Cir.No.30 T of 2006 Dated 10.10.2006.
The Maharashtra Value Added Tax Rules, 2005 were amended by a Gazette Notification
dated the 8th September 2006.Amongst other Rules, Rule 17 was also amended. Sub-rule (4) of Rule 17
was substituted in order to provide a different periodicity for filing of returns. A Trade Circular dated the
10th October 2006 was earlier issued explaining the import of the amendments. It had been stated in the
circular that “the new periodicity would be applicable in respect of all periods ending on or after 8th
September 2006”. The matter has since been reconsidered. It is now decided on administrative grounds to
make the new periodicity applicable in respect of all periods starting on or after the 1st October 2006. In
other words, for the periods ending upto the 30th September 2006, the earlier provision regarding periodicity
would continue to apply.
2. This circular cannot be made use of for legal interpretation of provisions of law, as it is clarificatory
in nature. If any member of the trade has any doubt, he may refer the matter to this office for further
clarification.
3. You are requested to bring the contents of this circular to the notice of all the members of your
association.
Yours faithfully,
(B.C.KHATUA.)
No.VAT/ADM-1006/1B/Adm-3 Mumbai Dt : 16.10.2006
Trade Cir. 31 T of 2006
7)
829,8th floor, Vikrikar Bhavan,
TRADE CIRCULAR
To,
---------------------
---------------------
No.VAT- 2007/Interest/Return Div. Mumbai, Dated:23.03.07

Trade Circular No.27 T of 2007
Sub- Interest on delayed payment of tax to be paid

along with tax amount while furnishing Return/chalan.
Gentleman/Sir/Madam,
Interest @ 1.25% per month or part there of on the tax paid after prescribed date is payable
under sub-section (2) of section 30 of the Maharashtra Value Added Tax Act 2002,read with rule 88
(1) of the Maharashtra Value Added Tax Rules 2005. Fewer assessment orders will be passed in
VAT regime as the self assessment done by the dealers through returns will be relied upon in
majority of cases.
All the dealers are, therefore, requested to calculate and pay in the return / chalan itself the interest
along with the tax paid after due date. This will save the dealer’s time and efforts for making separate
interest payment as well as the department’s time for separate levy of interest and further correspondence.
3. Penalty u/s 29(8) of the MVAT Act is attracted for non filing or late filing of returns. No
penalty under this provision will be levied in the cases where full interest is paid suo- motto along with the
tax in the late return in the aforesaid manner. In all other cases of late return filing, proceedings of levy of
interest and penalty will be completed as per law.
This circular cannot be made use for legal interpretation of the provisions of law, as it is clarificatory
in nature. If any member of the trade has any doubt, he may refer the matter to this office for further
clarification.
You are requested to bring the contents of this circular to the notice of the members of your
association.
Yours faithfully,
(B. C. KHATUA)
Maharashtra State,Mumbai.
No.VAT- 2007/Interest/Return Div. Mumbai, Dated : 23.03.07

Trade Circular No.27T of 2007
-------------------------------------
Chapter 4
Targets ( Financial & Physical )
A) Financial Targets
Financial target is not applicable for the Return branch.
B) Physical Targets
a) Joint Commissioner :- Total target of the branch.

b) Deputy Commissioner :- Total target of the Section.
He shall supervise various tasks
allotted to his Section & ensure that
the tasks are completed within
stipulated period
c) Sales Tax Officer :- Total target of his Unit.
The Sales Tax Officer shall arrange the work load & see that the following tasks are achieved within
stipulated time period as shown below.
Sr. No. Nature of Work Completion period for the work

from the receipt of the list from
Mahavikas
1 Curing of defects of the return- Monthly 45 days
Quarterly 60 days
Six monthly 90days
2 Chasing of defaulters - Monthly 90 days
Quarterly 120 days
Six monthly 150 days
3 Short Filers 75 days
4 Late Filers Involving Tax(Interest Orders) 75 days
5 Late Filers Involving Tax or otherwise(Penalty Orders 90 days
Note : Completion period includes periods for issuance of notices, passing & servicing of necessary
orders, persuasion of recovery before the stage of MLRC action & transfer of unrecovered dues to
the Recovery branch.
d) Sales Tax Inspector :

Sr. Nature of Work Target per day per S.T.I.
No.
1 To validate the returns 100
2 To generate defect notices 100
3 To chase defaulters telephonically 50
4 To generate various types of notices 100
5 To generate unilateral assessment orders 10
6 To generate notices in Form No.213 for short filers 100
7 To generate Interest orders 50
8 To generate the penalty orders 25
9 To generate main scroll number on Mahavikas 100
10 To visit the place of business of the dealer 15
11 To lodge prosecution of Big Tax Payers defaulters for non filers of 1 per month
Return
12 To take recovery action of available recovery raised, by In all cases, within 5 days
generating, preparing various orders by the respective Inspector. from the due date of the
respective order
e) Clerk :
Sr. Nature of Work Target per day
No. per Clerk.
1 To generate demand notices in respect of UAO, Interest orders & Penalty 50
orders & entries to be taken in the register
2 To take the entry of penalty show cause notices & courtesy notices 100
3 To prepare list of show cause notices, courtesy notices, UAO, Interest orders 100
& Penalty orders & hand over to courier service along with respective notices
& orders
4 To close entry of recovery made in the register 100
5 To prepare list of available recovery & get the recovery transferred along with 100
recovery papers to the recovery branch & take cross entries.
6 To count returns as per main scroll & sub scroll & to issue letters regarding 1500
discrepancies.
7 To generate main scroll of returns received at return counter 250
8 To hand over & receive letters , notices to & from courier agency. 500
To return the duly served/ unserved notices to the respective officers
C) Key Performance Indicators for the branch
CLERK ( RETURN BRANCH )- Key Performance Indicators
Credit Points for Total Total Remark

Indicators Credit credit
Point point
eligible awarded
a ) General Quantity Quality
1) Acceptance of
letters, references 5 - 5
& its follow up
2) Maintenance of
prescribed
registers & Closing of
10 - 10
entries in registers
and to prepare
month wise abstract
3) Statements and follow
10 - 10
up of pending work
4) Selection &
submission of file 5 - 5
section
5) Preparation of notes &
submission to 10 - 10
supervisor
b) Functional
-
I ) clerk with STO’s
Office -
1) To prepare demand
notices, show cause
15 - 15
notice for penalty &
Courtesy letter
2) Preparation of list of
various notices for
submission to courier 5 - 5
services
3) Preparation of list of
available recovery
along with recovery
papers for transfer to
Recovery Br.
10 - 10
II) Ret. Counter Section

a)To receive Nil Ret.& to
give acknowledgment 10 - 10
to the dealers
b)To prepare list of Nil return
and send the returns along
10 - 10
with list to Collection &
Processing Section..
c) To take data entry of
10 - 10
return
C) Collection & Processing
Section
1) To collect returns ,
main scroll & sub scroll
from link branches of
nationalized banks & nil
ret. from return counter
along with main scroll
and to receive Ref.
Return along with list
from refund Audit Br.OR
2) To count the returns
as per main scroll &
sub scroll collected
from bank and to attach 15 - 15
certificate and find out
discrepancies if any
3) To take the entries of main
scroll, sub scroll & returns in 15 - 15
reg., Act wise OR
4) To hand over the returns &
scrolls to Data Entry Agency.
along with soft copies of
reg.
IV) Storage section
1) To collect main scroll

& sub scroll along with
returns from Data Entry 15 - 15
Agency and to verify
with certificate
2) To arrange main
20 - 20
scrolls serially
3)To make available
scrolls to various 10 - 10
authorities
v)Administrative clerk
Whatever work allotted to the
15 - 15
particular clerk
c) Supervisory 1) This should be
authorities assessments of based on industry
personality & character and application ,
leadership quality,
relation with
colleagues &
public , general
intelligence ,
15 - 15
initiative and
drive , integrity &
treatment to
subordinates,
special attitude
etc.
2) This should be
based on initiative
& interest to learn
tax laws and tax
administration
process.
S T I ( RETURN BRANCH) - Key Performance Indicators
Total
Total
credit point
Credit
Credit Points for awarded Remark
Indicators Point
eligible
Quantity Quality
A) General -
1) Submission of reports & -

5 5
Compliance of correspondence
2)Maintained of office record ( -
5 5
Recovery papers & various orders )
3) To maintain visit diary 5 - 5
B) Functional -
1) To follow up of defaulter - Evaluation of
dealer (Non filers/short 10 10 disposal quantity of on
filers) the basic of given target
2)Tracing out not traceable Evaluation to be done
dealer. on the basis of efforts
10 -- 10
put in for tracing out the
dealers.
3)Recovery Evaluation to be done
on the basis of quantity
10 -- 10
and quality (efforts put
in for recovery .)
4) To initiate prosecution - Evaluation on the basis
action 5 5 of quantity with respect
to defaulters.
5) To follow up of V.R.S.
15 15
Dealers
a)To generate Notice in - Evaluation to be done
form -603 with respect to cases
allotted
b)To verify book of accounts - Evaluation to be done
& get the returns filed. with respect to cases
allotted.
c)To prepare Assessment Evaluation to be done
orders if required. with respect to cases
allotted
d)To generate show cause Evaluation to be done
for R.C. cancellation & To with respect to cases
prepare R.C. Cancellation allotted
order as and when
required.
6)To generate Int. orders - Evaluation of disposal
for late filers & quantity of on the basic
10 10
To generate Pen. Show of given target
cause & Orders
7) To prepare Unilateral - Evaluation on the basis
Assessment orders 5 5 of quantity with respect
to defaulters
8) Validation of Returns Evaluation to be done as
per percentage of work
5 -- 5
done .
C) Supervisory This should be based on

Authority’s industry and application,
assessment of leadership quality,
personality & relations with colleagues
Character. & public , general
15 -- 15
intelligence, imitative
and drive ,integrity &
character, treatment to
subordinates,
special attitude etc.
S T I ( RETURN BRANCH) working in storage Section -

Key Performance Indicator
Total
Total
credit
Credit
Credit Points for point Remark
Indicators Point
awarded
eligible
Quantity Quality
A) General -
compliance of 10 10
correspondence.
2) Maintained of office record. 10 - 10
To maintain diary. -
10 10
B) Functional -
1)To verify the sub scroll and -
returns as per certificate
attached to main scroll
20 20
after receipts of returns
from DEA and to intimate
discrepancies to DEA.
2)To supervise the work of -
storage of scrolls and 10 10
returns.
3)To prepare payment -
confirmation certificate as
and when required by 10 10
various branches of S.T.D.
& Dealer.
4)To make available returns as
and when required by 15 15
STD/Dealer
C )Supervisory - This should be
Authority’s based on industry
assessment of and application,
personality & leadership
character. quality, relations
with colleagues &
public,general
15 15 intelligence,
imitative and
drive,integrity &
character,
treatment to
subordinates,
special attitude
etc.
S T I working in Collection & Processing Section of Return - Key Performance Indicators
Total credit
Total
point
Credit
Credit Points for awarded Remark
Indicators Point
eligible
Quantity Quality
A) General -
compliance of 10 10
correspondence
2) Maintainance of office -
10 10
record
3) To maintain diary 10 - 10
B) Functional -
1) Collection & processing of - To be evaluated on the
returns, main scroll & sub basis of the work of
scrolls & handing over to collection from link
data entry agency. branches of various
40 40 nationalized banks and
generation main scroll
no. onMahavikas and
handing over main
scroll returns to D.E.A.
2) Reconciliation of Revenue -
receipts with scroll &
15 15
R.B.I./S.B.I.
C) C) Supervisory - This should be based on

Authority’s industry and
assessment of application, leadership
personality & 15 15 quality, relations with
character. colleagues & public ,
general intelligence,
imitative and
drive ,integrity &
character , treatment to
subordinates, special
attitude etc.
S T O ( RETURN BRANCH) - Key Performance Indicators
Total Total
Credit credit
Credit Points for Remark
Indicators Point point
eligible awarded
Quantity Quality
1) 1)Follow up of - The evaluation is to be

defaulters dealers made on the percentage
15 15
( Non filers/ short of disposal of defaulters
filers ) to the set target .
2) To Trace out non - On percentage of traced
traceable dealers 10 10 out dealers by efforts to
the set target
3) Recovery action - Percentage of actual
recovery to the available
10 10 recovery and credit to be
given for efforts put in
for difficult recovery
4)To initiate of -
10 10
prosecution action --
5)To pass int. & pen. - The evaluations is to be
Order in respect made on the percentage
10 10
of late filers of disposal / follow up to
the allotted cases
6)To follow up VRS - The evaluations is to be
dealers made on the percentage
10 10
of disposal / follow up to
the allotted cases
7) Maintained of office - ---
record and submission of 10 10
periodic reports
8) Sample validation - The evaluation is to be
made on the percentage
5 5 on validation done
against allotment of
scrolls
9)Any other specific The evaluation is to be
duty allotted made on nature of work
5 5
allotted and efforts put in
10) Supervisory - 1) This should be based

authorities on industry and
assessments of application , leadership
personality & quality, relation with
character & colleagues &
Administrative public , general
ability intelligence , initiative
15 15
and
drive , integrity &
treatment to
subordinates, special
attitude etc.
2) This should be based
on initiative & interest to
learn tax laws and tax
administration process.
3) Ability to super wise
and distribute work
amongst inspectors and
clerks
ESTABLISHMENT OFFICER ( RETURN BRANCH) - Key Performance Indicators
Total Total
Credit credit
Credit Points for Remark
Indicators Point point
eligible awarded
Quantity Quality
A) Work related to service - Regular updation

Book 20 of all service
books.
B) Work Related to - Regular/timely
Retirement and 25 processing of all
Pension.
C) Salary Bills, supplementary - Regular/timely
10
and Contingency Bills. processing of all
D) GPF advances, Budget, Regular/timely
Grant Distribution, Income 10 processing of all
Tax matters.
E)Timely processing and Regular/timely
maintenance of annual 10 processing of all
confidential reports.
F)Inspection of Establishment
10
work of Dy. CST (Adm)
G)Supervisory Authority’s This should be
assessment of personality & based on industry
character. and application,
leadership,
quality, relations
with colleagues &
public, general
intelligence,
15
initiative and
drive, integrity &
character,
treatment to
subordinates,
special attitude
etc.
H) Total Points 100

Personnel Assistant to Joint Commissioner of Sales Tax- Key Performance Indicators
Credit Points for Total Total Remark
Indicators Credit credit point
Point awarded
eligible
Quantity Quality
A) Work related to right to 05 10 15
information Act
B) Work relating to Establishment 05 05 10
officer as a Head of Branch
C) Work related to Office 10 10
Maintainenace & Registers
D) work related to Office Inspection 05 05 10
E) Compliance of Audit Report & 05 05 10
Inspection
F) Compliance of the Higher 05 05 10
Authorities References
G) Complilation of Information – 05 05 10
D.O. Diaries & other M.I.S.
H) Preparation of meetings & 05 05 10
minutes
I)Supervisory Authority’s assessment 05 10 15
of personality & character.
Total Points 40 60 100
Performance Evaluation Indicators Dy. Commissioner of sales Tax (Return Branch)
Indicators Total Total credit point awarded Remarks

Credit point
eligible
A) Overall Performance of the 50 A) The evaluation of this
Range Indicators is to be made on
the achievement of target.
B)Inspection and supervision of 15 B) The evaluation of this
Range. Indicators is to be made on
the basis of supervisory
control over the range and
periodic inspection carried
out
C) Maintenance of office 20 C) The evaluation of this
records, compliance of Indicator is o based on overall
correspondence, references, maintenance of record,
inspection of supervisory compliance of
authorities correspondence, references,
inspections of supervisory
authorities.
D) Supervisory authorities 15 D) This should be based on
assessment of personality and industry and application,
character leadership, quality, relations
with colleagues and public,
general intelligence, initiative
and driver integrity and
character treatment to
subordinates, special attitude
etc.
Performance Evaluation Indicators

Joint Commissioner of Sales Tax (Return Branch)
Total Total
Point point
eligible awarded
A) Overall Performance of the 50 A) The evaluation of this Indicators
Branch is to be made on the achievement of
target.
B) Inspection and supervision of 10 B) The evaluation of this Indicators
Branch. is to be done on the basis of general
supervision of the Branch and
periodic inspection carried out.
C) Maintenance of office records 10 C) Indicates overall maintenance of
and registers. all the office registers, files etc. It
also includes general office
keeping,cleanliness and sending old
records to record section etc. in the
Total Total
Point point
eligible awarded
entire Branch.
D) Compliance of office Inspection 15 D) This Indicates the compliance of
to supervisory authorities. all the regular statements and
information asked by supervisory
authorities from time to time
including the office inspection
conducted by them.
E)Supervisory Authority’s 15 E) This should be based on industry
assessment of personality & and application, leadership, quality,
character. relations with colleagues &
public, general intelligence,
initiative and drive, integrity &
character, treatment to subordinates,
special attitude etc.
---------------------------------
Chapter 5
Process In Brief
1) Collection of the revenue receipts & their reconciliation with the
receipts as per the scrolls
To collect & reconcile the revenue receipts received from R.B.I. in Mumbai ( S.B.I. for other places ) with
the revenue receipts as per the physical scrolls collected from various banks.
2) Collection, data entry and processing of
returns & scrolls
For the administrative purpose , registered dealers are distributed amongst the Sales Tax Officers in the
Return branch on the basis of PIN Code Nos. of the P.O.B. Of the dealers for Mumbai & other such big
locations. Other than big locations, one officer shall handle all the registered dealers at his disposal.
Return branch collects the returns filed at bank along with main scrolls and sub scrolls. It also collects the
returns showing Nil tax liability from the STD counter & refund returns from the Refund Audit Branch.
After generating Main Scroll Nos on MAHAVIKAS, the returns are handed over to the Data Entry Agency
for scanning and data entry.
The data entered by Data Entry Agency is validated in the Return branch with the physical returns & scrolls
on a sample basis.
Validation of the data means to check whether the returns filed by the dealers are correctly data entered or
otherwise. If any mistakes are committed at the time of data entry viz. entering names of dealers, periods,
dates of payments & turnover related, input tax credits related, deductions related, tax rate related figures
wrongly or entering figures in wrong fields, the same are required to be edited & corrected.
MAHAVIKAS shall generate various lists such as incomplete & inconsistent returns filers, non filers, short
filers and late filers.
Once these lists are generated by MAHAVIKAS, actions (including recovery action u/s 33 of the MVAT
Act,2002) on the erring dealers are initiated as per the provisions of law.
Return Branch shall also follow up of VRS dealers & shall cancel registration of non-serious/bogus dealers,
if necessary.
3) Storage
Returns along with sub- scrolls & main scrolls shall be stored in a Storage section serially as per the Main
Scroll Nos. and temporarily handed over to the concerned Officers for validation purpose.
Storage section shall make copies of the returns available to various sections of the STD and the dealers as
& when requested for.
---------------------------
Chapter 6
Procedure of Return branch
1) Compilation & reconciliation of the revenue receipts
Daily receipts pertaining to the sales tax & other taxes administered by the STD received in Mumbai are
collected from the R.B.I., Mumbai & Belapur CBD. In case of Mofussil, daily receipts pertaining to the
sales tax & other taxes administered by the STD are collected from respective S.B.I.
A statement of such daily receipts is prepared and submitted to the Commissioner’s Office.
At the end of the month, monthly statement of receipts is prepared .
If any discrepancies are noticed in the payment receipts as per physical scroll & as per the R.B. I. receipts,
they are taken up with the R.B.I /S.B.I. as the case may be, for reconciliation.
2) Collection of returns, sub-scrolls & main scrolls

Returns branch collects the returns filed with the authorized banks along with sub-scrolls & main scrolls on
a regular basis. Returns & sub-scrolls are verified with the main scrolls & if any discrepancy in the no. of
chalans or sub-scrolls is found, it is informed to the concerned bank.
A Certificate is attached to the main scrolls regarding no. of sub-scrolls & returns/chalans enclosed.
A separate main scroll No. is generated on MAHAVIKAS, once the details of name of bank, date of main
scroll, total amount of main scroll & no. of sub-scrolls are entered.
Returns branch also collects the returns showing nil tax liability , which are filed at the STD counter &
refund returns from Refund Audit Branch. After preparing their list, a main scroll No. is generated on
MAHAVIKAS.
After generation of main scroll No., act wise details of main scrolls, sub-scrolls, no. of chalans & amounts
are entered in the Collection & Processing register.
Returns branch also collects the TDS returns filed in Form No. 405.
3) Data entry of returns, sub-scrolls & main scrolls

Returns received from the banks along with sub-scrolls & main scrolls and returns received at the STD
counter along with lists are handed over to the Data Entry Agency (DEA) for scanning & subsequent data
entry.
DEA enters the data on the basis of the scanned images.
DEA gives reports regarding discrepancies in amounts, no. of returns & no. of sub- scrolls which are taken
up with the respective banks.
4) Processing of returns, sub-scrolls & main scrolls

a) Prevalidation
MAHAVIKAS captures all the returns & payments, data entered by DEA.
This captured data is made available to the designated allocating Officer.
Since validation is to be done on a sample basis, the allocating Officer shall allocate main scrolls
containing 5% of the total returns data, ported on the Return module of MAHAVIKAS amongst all Sales
Tax Officers (S.T.O.s) of the Return branch.
S.T.O.s reallocate the main scrolls amongst their Sales Tax Inspectors (S.T.I.s) for validation & approval of
returns.
S.T.I. validates & approves returns. He also validates sub-scrolls & main scrolls and forwards approved
returns along with validated sub-scrolls & main scrolls to the concerned S.T.O. He shall take details of the
mistakes committed by the DEA, while entering the data.
S.T.O. edits the sub-scrolls/ main scrolls, if necessary and then approves them.
Percentage of the mistakes committed by the DEA, shall be communicated to the Commissioner Office.
b) Post Validation
MAHAVIKAS shall generate a list of dealers whose returns are incomplete & inconsistent.
MAHAVIKAS shall also generate separate lists of short filers, non filers, & late filers.
In respect of incomplete & inconsistent returns, defect notices in Form-212 shall be generated on
MAHAVIKAS and issued to the dealers within four months from the date of filing of the return. If the
dealer files fresh, self consistent & complete return within one month from the date of service of the defect
notice, MAHAVIKAS shall close the defect memo proceedings . If the dealer fails to file a fresh return
within one month, MAHAVIKAS shall treat the dealer as a non filer.
In respect of short filers, notices in Form-213 shall be generated on MAHAVIKAS and issued to the
dealers.
In respect of late return filers involving tax, Interest Orders u/s 30 (2) of the MVAT Act, 2002 shall be
generated on MAHAVIKAS along with demand notices and issued to the dealers.
In respect of late return filers involving tax amount or otherwise, show cause notices for imposing penalty
u/s 29 (8) of the MVAT Act, 2002 shall be generated on MAHAVIKAS and issued to the dealers.
In respect of a late return filer dealer who submits his cause(s) for filing the returns after the due dates,
either orally or by attending the proceedings or in writing, Order(s) to impose or not to impose penalty u/s
29 (8) of the MVAT Act, 2002 shall be generated on MAHAVIKAS along with demand notice(s) and
issued to him.
In respect of the dealers who have failed to respond to the said show cause notices, Orders imposing
penalty u/s 29 (8) of the MVAT Act, 2002 shall be generated on MAHAVIKAS along with demand notices
and issued to them.
In respect of the non filers, the dealers shall be first followed- up telephonically. If the follow-up does not
yield any result, then courtesy letters along with show cause notices for imposing penalty u/s 29 (8) of the
MVAT Act, 2002 shall be generated on MAHAVIKAS and issued to the dealers.
If the dealer responds to the courtesy letter/ show cause notice and submits copies of the returns for the
periods covering courtesy letter, there shall be two contingencies:-
1) The returns are filed in time; however, data could not be entered for some reasons. In that case,
entry of courtesy letter shall be closed, penal proceedings shall also be dropped and DEA shall be informed
about it.
2)The returns are filed after the prescribed time. In that eventuality, decision to impose or not to impose
penalty u/s 29 (8) of the MVAT Act, 2002 shall be taken based on the dealer’s submission. However,
Interest Order(s) u/s 30 (2) of the MVAT Act, 2002 shall be passed.
If the dealer does not respond to the courtesy letters, assessment Orders u/s 23(1) [U.A.O.s] of the MVAT
Act, 2002 shall be generated on MAHAVIKAS along with demand notices and issued to the dealers.
If the dealer makes applications in the prescribed Forms for cancellations of the U.A.O.s and submits copies
of returns filed for the periods covering the U.A.O.s along with proofs of having paid the amounts of tax
due as per the returns, Orders of cancellation of U.A.O.s shall be passed.
If the dealer makes payment of amount of tax/interest so demanded as per the U.A.O.s, the case shall be
sent to the Business Audit/Enforcement branch.
If the dealer does not respond to the courtesy letters/ show cause notices, processes of Police Prosecution
shall be initiated/or the Orders imposing penalty u/s 29 (8) of the MVAT Act, 2002 shall be generated on
MAHAVIKAS along with demand notices and issued to the dealer.
5) Follow up of VRS dealers

Month wise list of voluntary registered dealers will be received from the Registration Branch.
Return Branch shall follow up the returns of VRS dealers and propose cancellation of registration
of non-serious (voluntary) dealers to the Registration Branch, if necessary. The STOs shall call the VRS
dealers and verify their books of accounts with the returns filed by them. To do so the STO shall, inter alia
--
a) Issue notice in Form 603 to all the VRS dealers and call the books of accounts and other
relevant documents including the returns due up to the date of notice.
b) If the dealer does not attend or attends without books of accounts, the officer shall issue notice for
levy of penalty under Section 29(7) for non-compliance of notice or under rule 90 for breach of Rules, and
propose for cancellation of registration to Registration Branch.
c) Pass assessment orders, if the verification of books results into dues and the dealer does not accept
such dues.
d) Where it is noticed that the dealer has not done business or discontinued the business, the officer
shall cancel the registrations after giving a hearing to the dealer & shall transfer registration record to
Record section.
e) If serious revenue implication/threat to the system is found, he shall send
such cases to the Business Audit/Enforcement Branch after taking necessary permission from
the J.C.
6) Visit for recovery action & tracing out non

traceable dealers
S.T.I.s working in the S.T.O.s Office shall visit the P.O.B of the dealer.
1) to find out the whereabouts of the dealers to whom various notices/orders could not be served
through courier or Notice Server.
Action in respect of not traceable dealers :
If the dealer is not traceable after making every efforts to trace him, the information
regarding cancellation of R.C. be furnished to the Registration Branch in the following proforma:
Sales Tax Officer ( )

Return, --------------
To,
The Sales Tax Officer,
Registration Branch,--------------------
No. STO( )/RET/-------------/ TIN-------------------/R.C.Can/B Mumbai Dt.
Subject : Information of not traceable dealers,

for cancellation of R.C.
Ref : TIN :--------------------------------
M/s----------------------------------
With reference to the above subject, I have to inform that, the dealer mentioned in the above
reference is not found at the address of his place of business in the visit of the S.T.I. Of this office.
In the inquiry made by the S.T.I. it is revealed that, the dealer is not available at the place of
business since------------. The copy of the report of the Sales Tax Inspector is enclosed herewith for
necessary action of the cancellation of R.C. as per the first proviso of sub section (6) of the section 16 of the
MVAT Act, 2002.
Encl : Report Sales Tax Officer ( )

Return,--------------
2) to pursue the available recovery.
The S.T.I.'s shall make every effort to trace out the where abouts of the dealers, who are not-traceable at
their declared P.O.B.s and get the various notices/orders issued by the Return branch served on them.
They shall follow up the available recovery first telephonically and if the dealer does not respond, then
actions on dealer's bank/ debtors, as contemplated u/s 33 of the MVAT Act,2002 shall be initiated and
pursued vigorously.
7)Storage
Returns along with sub-scrolls & main scrolls and returns along with lists are received back by the Storage
section, once their scanning is done by the DEA.
Returns & sub-scrolls attached to each main scroll are counted and verified with the Certificate attached to
each main scroll.
If any discrepancy is noticed as regards to the correctness of returns/sub-scrolls, matter is taken up with the
DEA & pursued till the discrepancy gets resolved.
Returns along with sub-scrolls & main scrolls and returns along with lists received from the DEA are
serially stored as per the main scroll No. generated by MAHAVIKAS.
Returns along with sub-scrolls & main scrolls are handed over to the respective Officer to whom the main
scrolls are allocated for sample validation on the basis of the lists received from the allocating officer.
After sample validation/approval is done by the S.T.O., returns along with sub-scrolls & main scrolls are
received back and stored serially as per the main scroll no.
Copies of the returns are made available as & when required by the various sections of the STD & the
dealers.
Payment confirmation Certificates are issued as & when required by the various sections of the STD & the
dealers.
Excess remittance made by the banks to be processed.
8) Interface with other branches of STD

If the demand raised as per Interest /Penalty/UAO remains unpaid,even after taking action u/s 33 of the
MVAT Act,2002 (Special mode of recovery), recovery shall be sent to the Recovery branch.
During the processing of the returns if prima facie, Gross Turnover of Sales/Purchases, Input tax credits, tax
paid , deduction claimed etc are
found suspicious, then such returns shall be forwarded to Business audit/Enforcement branch.
9)Miscellaneous Tasks
Relevant amendments pertaining to returns filing procedure are suggested to the MVAT Act & the rules
framed there under.
Various Forms of returns are redesigned from time to time.
In view of the various amendments taking place to the MVAT Act & the rules framed there under and the
Trade Circulars being issued from time to time, dealers shall be educated and guided properly.
Annual expenditure budget for the branch shall be prepared.
Actual expenditure and account for any actual and budgeted expenditure shall be monitored.
For the purpose of issue of Sales Tax Clearance Certificates information of position of filing of returns and
outstanding dues if any to be given to Recovery branche when asked for .
Banks are effectively liaised on the various issues.
Administrative & establishment related works are carried out. --------------
-------------
Chapter 7
Duties and Responsibilities at each hierarchy for every function.
Sr. No. Function Designation Powers, Duties & Responsibilities

1 a)Compilation of Clerk 1) To collect Act wise figures of daily receipts received
the revenue from the RBI/SBI.
receipts 2) To prepare a statement of such daily receipts &
submit copy to the CST office
3) To prepare monthly statement at the end of the
month.
S.T.O.(3) 1) To supervise the work of obtaining the daily receipts

from RBI/SBI & compilation of the same.
2) To prepare the monthly receipt statement.
3) To compare the Act wise progressive as well as
monthly receipts with previous year.
To reconcile the RBI/SBI receipts with physical scrolls

receipts .
b) Reconciliation of Clerk To supervise the reconciliation of the RBI/SBI receipts

the revenue receipts with physical scrolls receipts .
S.T.O.(3) To overall supervise the work of return reconciliation

& with the scroll.
S.T.O. (9)
D.C .(1) To overall supervise compilation & reconciliation of the

& revenue receipts.
D.C.(2)
J.C.
2 Collection of Clerk 1) To Collect returns & Chalans from the link branches
returns & scrolls (C of Nationalised Banks & to accept Nil returns collected
& P Section) at the Return Counter.
2) To receive refund returns along with list from Refund
Audit Branch.
3) To Count returns as per the sub scrolls & Main
scrolls collected from the banks & to attach the
Certificate for the same withsignature.
4) To take entries of act wise details of
main scrolls, sub-scrolls, no. of chalans & amounts in
the Collection & Processing register, once the main
scroll No. is generated on MAHAVIKAS.
5) To hand over the returns & scrolls to D.E. A. for

scanning along with soft copies of C&P register.
6) To intimate the banks regarding the discrepancies in
no. of returns/sub-scrolls found after counting.
(1) To Collect returns & Chalans from the link branches
of Nationalized Banks .
(2) To generate Main scroll Nos. on Mahavikas.
(3) To supervise work of handing over of main
scrolls/returns to the DEA.
S.T.I.
To supervise C & P Section.
To overall supervise C & P Section.
S.T.O. (9)
D.C (2)
3 Return Counter Clerk 1) To receive NIL returns filed at the counter and to
give acknowledgments to the dealers.
2) To prepare lists of such returns.
3) To send such returns along with lists to C & P
section.
To supervise overall work of the Return counter.
S.T.O. (15)
4 To process VAT Clerk 1) To generate D/N in respect of UAO,Penalty Order &

returns, payments & Interest order & entry to be taken in respective
to interface with registers.
other branches. 2) To take entry of Penalty show cause letter, courtesy
letters in the prescribed register.
3) To prepare list of show cause notices, courtesy letter,
unilateral A.O., Interest Orders, Penalty Orders ,
courier services along with the notices & respective
orders.
4) To prepare notice in Form 603 for VRS dealers.
5) To update all the prescribed registers.
6) Draw monthly abstracts
7) To prepare periodical reports & statistics.
8) To maintain work sheet & draw monthly abstracts.
9) To do cataloging of records of non-filers, short filers
& late filers properly.
(1) To generate the notices in Form No.

212 in respect of defective returns.
(2)To generate the notices in Form No.

S.T.I. 213 in respect of short filers.
(3) To generate the interest order in respect of late

return filers involving tax payments,
(4) To generate show cause notices u/s 29(8) of MVAT
Act 2002 & penalty orders u/s 29(8) in respect of late
filers & non filers.
(5) To follow up the defaulted dealers telephonically. If
the follow up does not yield any result, then he shall
generate courtesy letters along with show cause notices
u/s 29(8) of MVAT Act, 2002 .
(6) If dealers fail to respond to the notices, he shall
generate U.A.O. as per direction of the S.T.O.
(7) In respect of big tax payer defaulter dealers, he shall
lodge police prosecution action as per the direction of
S.T.O.
8) To prepare show-cause notice for penalty u/s 29(7) of
the MVAT Act, 2002.
9) To prepare show-cause notices for R.C. cancellation.
10) To prepare R.C. cancellation orders in respect of
VRS dealers.
1) To reallocate the main scrolls amongst their S.T.I.s

for sample validation & approval of returns.
2)To approve sub scrolls & main scrolls which are
forwarded by STI after validation.
3) In respect of defaulters, S.T.O. shall supervise and
ensure that appropriate follow -up action is taken i.e. the
dealer is followed telephonically. If the follow up does
not yield any result, then he shall issue courtesy letter
along with, show cause notices u/s 29 (8) of MVAT
S.T.O. Act,2002 for imposing penalty. Even if the dealer does
( All) not respond, unilateral assessment order/initiation of
police prosecution or penalty orders shall be
undertaken.
4) To issue Notices in Form No. 213 in respect of short
filers.
5) To pass the interest orders u/s 30(2) in respect of
late filers involving tax payment.
6) To issue show cause notices u/s 29(8) of M.VAT Act
in respect of late return filers involving tax amount or
otherwise.
7)To pass order either to impose or not to impose the
penalty u/s 29(8) of M.VAT Act after considering the
dealer’s submission.
8) To refer doubtful cases to Business Audit Branch.

9) To manage S.T.I. & Clerk.
10) To compile periodic reports & statistics on work
performed.
11.) To issue notices in Form-603 to VRS dealers.
12) To pass assessment orders if necessary in respect of
VRS dealers.
13) To issue show-cause notices for penalty u/s 29(7) &
show-cause notices for cancellation of R.C.
14) To pass R.C. cancellation orders in respect of VRS
dealers & to pass on the information to update the
dealers master.
15)Other duties that may be assigned by the D.C.
1) To allocate the main scrolls to the S.T.Os for sample
validation.
2) To supervise the work of distributing the main scrolls
with returns physically to S.T.Os & to collect them back
after sample validation.
3) To supervise the follow up of short filers, late filers
& non filers.
4) To supervise process of follow up of VRS dealers of
the section.
1)To ensure the standard system & procedure are

constantly applied & observed.
2)Liaise with and monitor the performance of any
outsourcing. Sub contractors, ensuring that contractual
obligations are complied with.
3) To overall supervise the process of follow up of
VRS dealers of the branch.
D.C.(1/2/3)
J.C.
5 Storage Clerk 1) To collect main scroll/sub-scroll along with returns

from DEA.
2) To verify the sub-scrolls and returns as per the
certificate attached to the main scrolls.
3) To arrange the main scrolls serially.
4) To make the main scrolls available to the STOs for
sample validation and receive them back after sample
validation is completed.
5) To provide photocopies of returns as and when
required.
1) To intimate the DEA about the discrepancies found

S.T.I. in the no. of sub-scrolls and returns.
2) To prepare payment confirmation Certificates as &
when required by the various branches of the STD &
the dealers.
1) To overall supervise Storage Section.

2) To issue payment confirmation Certificates as &
S.T.O. (10) when required by the various branches of the STD &
the dealers.
3) To process applications of the banks regarding
wrongful excess payments made by them to the
Government.
6 Visit & Recovery Clerk 1) To prepare notices u/s 33.
Action 2) To prepare a list of unpaid recovery to be sent to the
Recovery branch.
3) To close the recovery entries after completion of
recovery proceedings.
S.T.I. 1) To follow up the dealers telephonically in respect of

pending recovery.
2) To follow up further recovery actions.
3) To serve unserved notices & orders by finding out
whereabouts of the dealers.
S.T.O. 1) To supervise the recovery actions & services of

(All) unserved notices of the unit .
2) To transfer the recovery which is pending even after
taking action u/s 33 of MVAT Act, 2002, to the
Recovery branch.
DC(1/2/3) To supervise the visit & recovery actions of the

Section.
JC To overall supervise the visit & recovery actions of the

branch.
7 Miscellaneous a) S.T.O. To provide information, to the Recovery Branch, for the

Functions (All) purpose of issue of Sales Tax Clearance Certificates.
To liaise with the nationalised banks.

b) D.C.(3) &
S.T.O.(19)
To liaise with Mahavikas
c) S.T.O.(16) &
S.T.O.(17)
Personal To do :
Assistant to Joint 1)Work related to right to information Act
Commisioner of 2)Work relating to Establishment officer as a Head of
Sales Tax Branch
3)Work related to Office Maintainenace & Registers
4)work related to Office Inspection
5)Compliance of Audit Report & Inspection
6) Compliance of the Higher Authorities References
7) Compilation of Information – D.O. Diaries & other
M.I.S.
8) Preparation of meetings & minutes
9) Any other work assigned by J.C. from time to time.
To perform
1) Work related to service Book

2) Work Related to Retirement and
Establishment Pension.
Officer 3) Salary Bills, Supplementary and
Contingency Bills.
4) GPF advances, Budget, Grant
Distribution, Income Tax matters.
5) Timely processing and maintenance of
annual confidential reports.
6) Inspection of Establishment work of
Dy. CST (Adm)
1) To assist the J.C. in the formulation of strategy &

objective for the branch.
2) To manage the staff of the range, deploying staff as
D.C.(1/2/3) necessary to address any fluctuation in work flow.
3) To manage the formulation & implementation of the
annual operational plans of the range, allocate work
accordingly, receive reports on implementation on range
staff & make monthly reports to the J,C. summarizing
progress against plans & accounting any variations
4) To ensure that standard systems & procedures are
consistently applied & observed.
5) To monitor work flow & exception reports to identify
any persistent issues that needs to be addressed through
tax payer education, redesign of forms, changes in rules,
revise the procedures, etc.
6) To provide guidance to staff on issues relating to

interpretation of law or the exercise of discretion within
the limits allowed by law.
7) To carry out quality control checks on the work
of the section.
8) To liaise with and monitor the performance of any
outsourced sub contractors, reporting any service level
problems to the J.C.
9) To conduct performance appraisals of S.T.O. &
S.T.I.
10) To identify training & development needs for range
staff & arrange appropriate training.
12) To deputize for the J.C. as required
1) To assist the Additional Commissioner in the

formulation of strategy and objectives for the Return
branch.
2) To manage the formulation and implementation of
the annual operation plans of the branch, allocation of
work accordingly, receive reports on
implementation from section heads and make monthly
reports to the Additional Commissioner summarizing
progress against plans and accounting for any
variations.
3) To prepare an annual expenditure budget for the
branch, monitor actual expenditure and account for any
actual and budgeted expenditure. 4) To ensure that
standard systems and procedures are consistently
J. C. applied and observed.
5) To provide guidance to staff on issues relating to the
interpretation of law and the exercise of discretion
within the limits allowed by law.
6) To liaise with and monitor the performance of any
outsourced subcontractors, ensuring that contractual
obligations are compiled with.
7) To carry out quality control checks on the work of
the Branch.
8) To report persistent issues that need to be addressed
through taxpayer education, redesign of forms, changes
in rules, revised procedures etc.
9) To conduct performance appraisals of Deputy
Commissioners.
10) To identify training and development needs for

Deputy Commissioners and arrange appropriate
training.
11) To deputize for the Additional Commissioner as
required.
12) To act as appellate authority under R.T.I Act 2005.
During pre-stablization of Mahavikas,

(1) interest/penalty/U.A. Orders shall be generated on Mahavikas by entering necessary fields.
However, after stabilization of Mahavikas, the said orders shall be generated automatically;
(2) before issuing notices/orders to the dealers , correctness

of the notices/orders be verified from scanned images or
physical returns and copies of them be kept on record.
-----------------------------------
Chapter 8
Reporting Formats of the Branch,

D. O. Formats
From S.T.O. To D.C.,
D.C. To J.C., & J.C. To A.C. S.T.
Compilation & Reconciliation of the

Revenue Receipts
Statement No.1
a)Statement of Act wise daily - Receipts as per R.B.I./S.B.I. with

comparison to previous period
Statement of Act wise Daily Tax Receipts

on date:
Particulars MVAT CST LUX E.T. E.T. SCPT Total
On On
M.V. P.P.
Receipts of this year on same date
Receipts of last year on same date
Monthly Progressive (current year)
Monthly Progressive (last year)
Monthly Growth Percentage
Total receipts till today(i.e.1.4.2007
onwards)
Total receipts till the same date on last year
Growth Percentage
Signature, name & designation of reporting officer

Statement No.2
Statement of Reconciliation of Act wise Receipts

as per scrolls & as reported by R.B.I./S.B.I.
Returns branch
Reconciliation of Receipts
Information as per scrolls Information as per Reconciliation
R.B.I.'s/S.B.I.'s daily
statement
Sr. Name Main Amount Act Date of Amount as Difference Remarks
No. of the Scroll R.B.I./ per RBI (+) (-)
Bank Date S.B.I.'s statement
statement
Signature, name & designation of reporting officer

b) Collection of Returns
Statement No.1
Statement of Generation of Main Scroll No.

On Mahavikas
Name of the Office :-
For the month of
Date No of main scroll received from Progressive No of Main Progressive Balance

Scroll Scroll scroll to be
Generated Generated genetrated
Bank Counter Total
C/F
signature, name & designation of the officer reporting
Statement No.2
Statement of Return Collection & scanning status

Date RETURNS RECEIVED DETAILS OF DATA ENTRY
Balance with
! " " % " & Division
% "
#$ #$ #$
#$
C/F
Total
signature, name & designation of the officer reporting
Statement No.3
Statement of Defective Returns
Name of Office
Satement of Defective Returns for the month of
1) Statement of Defective Returns
Opening Received Total Defect Closing

balance of during the memos Balance
defective month issued during
returns the month
1 2 3 4 5
Statement No.4
Statement of Short Filers
'
( & (
)
(* * * (
"" " " +, & , ,
-
(
.
$ -
$
% , "
,+
#
( / 0 #
Statement No.5
Statement of Defaulters
'
( & ,12 ,1( 3 , '
Live Received From Mahavikas
Periodicity Opening balance
Sr. No. Dealers during month
No. of No. of No. of No. of
dealers defaults dealers defaults
1 Monthly
2 Quarterly
Six
3 Monthly
4 Total
Total number of Telephonically contacted & defaults Made good after issue of Courtesy /
defaulters available for made good Show cause letters during the Month
chasing
No. of No. of No. of No. of Amount No. of dealers No. of Amount
dealers defaults dealers defaults Paid defaults Paid
Unilateral assessment Orders Prosecution Lodged Balance Defaulters

passed
No. of No. of Demad No. of No. of No. of No. of
dealers defaults raised dealers defaults dealers defaults
Name & Designation of the Reporting Officer
Statement No.6
Statement of Interest Orders

'
( & 4 " " "
(* * * 4 * " + 4 " , Balance No.

" " of Interest
orders to be
passed
Cases
"
,
4
-
$* *
*-*
Signature, name & designation of the reporting officer
Statement No.7
Statement of Penalty Orders

'
( & , " "" '
(* * + 4 +
, " *
+ " % "& ,
" " +
"
* * * * * *
" " " " " "
-
(
LUX
E.T. On M.V.
E.T. On P.P.
* * * , " *
& & & " " , "
+ , + "
" , &
*
* * * * * * * *
,
" " " " " " " "
( / 0"
( ,/ 5 ,0 3 , "+ "
Statement No. 8
Statement of Unilateral Assessment Orders

'
( ( & 4 $% (($(( $ %#$% " #
(* * " , * "
& "
"+ ,
,
2 ,
! 6 ,
"" " +, 7 , % , "

" , " ,+
"
( / 0"
Statement No.9
Statement of Recovery
Statement No.10
Statement of Application received for scroll certificates ,certified copies of
returns, cancellation of UAO's, for rectification.
Name Of The Office / Division :-
Statement of Recovery of pending dues for the Month of -- (Amount in lacs)
Sr. Act Pending Recovery Total Amount reduced during the month
No. recovery at raised Recovery Actual Reduced by Reduced by Recovery got
the during the Recovery way of way of transferred
beginning month during the rectification cancellation on system(*)
of the month of unilateral to Recovery
Month assessment Branch. as
order 60 days from
due date are
over
No. of Amt No. of Amt No. Amt No. Amt No. Amt No. Amt No. Amt
cases cases of of of of of
cases cases cases cases cases
1 2 3a 3b 4a 4b 5a=3 5b=3 6a 6b 7a 7b 8a 8b 9a 9b
a+4a b+4b
1 MVAT
2 CST
3 LUXARY
4 E.T. On
P.P.
5 E.T.on
M.V.
6 SCPT
Total
Total Reduction Out of Col Balance recovery pending with Total

of Recovery No.9 return branch recovery
Recovery pending
got
transferred Due date Due to Due to
without and 30 application demand
action u/s 33 days for notices
by the thereafter rectification remained
Return not over pending unserved
Branch
No. Amt No. of Amt No. of Amt No. Amt No. Amt No. Amt
of cases cases of of of
cases cases cases cases
10a=6 10b=6b+ 11 a 11 b 12 a 12 b 13 a 13 b 14 a 14 b 15 a 15 b
a+7a+ 7b+8b+9
8a+9a b
Signature, Name & Designation of Reporting Officer

* Till full automation takes place, recovery is to be transferred physically.
Name of Office:-
Statement for the Month of --
Sr. No. Subject Opening Received Total Disposed during Closing

Balance during the the month balance
month
Scroll
certificate
Certified
copies of
returns
Cancellation
of UAO
Rectification
Total
Signature, Name & Designation of Reporting Officer
Chapter 9
Various Control Registers For the Branch & Format

Of the Same
A) Compilation & Reconciliation of the Revenue Receipts
Register No.1
Register of Act wise & Bank wise daily Receipts as per

RBI/SBI
Sr Date Name Date of Act wise receipts

No. of the RBI/SBI
bank Statement
MVAT CST LUX ET SCPT
No. of Amt No. of Amt No. of Amt No. of Amt No. of Amt Total
Chalans Chalans Chalans Chalans Chalans Receipts
Register No.2
Register of Act wise & Bank wise Daily Receipts as per Main Scroll
Sr No. Date Name of the Date of Act wise receipts
bank Main
Scroll
MVAT CST LUX ET SCPT
No. of Amt No. of Amt No. of Amt No. of Amt No. of Amt Total
Chalans Chalans Chalans Chalans Chalans Receipts
B) Collection of Returns
Register No.1
Register of Collection & Processing of the returns Received from The

Banks & STD Return Counter
Sr. No. Name of Main Scroll Amount Act No. Of No. of
the Bank of Main Sub returns as
Scroll Scroll per sub
scrolls
No. Date
1 2 3 4 5 6 7 8
Returns Discrepan Sign of No. of No. of Date Sign of Sign of

found cies found the clerk sub Returns/ clerk S.T.I.
after if any scrolls chalans
counting sent for sent for
scanning scanning
9 10 11 12 13 14 15 16
Date of No. of No. of Discrepan Discrepan Sign of Sign of

return sub Returns/ cies found cies if the the S.T.I. Remarks
received scrolls chalans if any any by receiving
DEA
from received received regarding
clerk
scanning after after amount
agent scanning scanning
17 18 19 20 21 22 23 24
Register No.2
Register of TDS Returns
C) Data Entries of the Returns
Register No.1
Register of Generation of Main Scroll No. on Mahavikas

Sr Date RC No./TIN Name & Address of Period Amount Remark
No. the Employer paid with
return
Date No of main scroll Progres No of Progressiv Balance

received from sive Main Scroll e Scroll scroll to be
Generated Generated generated
Bank Counter Total
D) Processing of returns & payments
Register No.1
Register of validation of Returns, Sub scrolls & Main Scrolls
( * 6 * * * * 8 %
* ( + % %
( - " " - " " "
" "
Register No.2
Register of defect Memos

Sr. TIN Name of Period Date of Nature Date of Date of Remarks
No. the dealer of filing of service filing of
& Return of defect of fresh
Date return defect return if
Notice any
1 2 3 4 5 6 7 8 9
Register No.3
Register of Defaulters
Sr. Date of receipt TIN/ Name of the Defaulting Telephonically SCN served on
No. of list from RC No dealer Period contacted on
Mahavikas
Unilateral order passed Penalty order passed on Prosecution lodged on Remarks

on date/ amount
date/ amount
Register No.4
Register of Short Filers

( * * 4 " # #
& ,
# % % , + " ,
&
:9;
9 : ; < = > ? @ A
# %
0"
,
, ,
% ,
#
9B 99 9:
Register No.5
Register of Interest Orders

Sr. No. Date R.C. No./ Name of Act Period
TIN the Dealer
1 2 3 4 5 6
Amount Date of Amount Dt. of Date of Remarks

of Service Paid payment transfer
Interest of D.N. of
recovery
to
recovery
branch
7 8 9 10 11 12
Register No.6
Register of Penalty Orders
Sr. R.C. Name of Act Period Date of Whether Amount

No. No./TIN the service submission as per
Dealer of S/C of the penalty
notice accepted is order if
dealer
or any
otherwise
1 2 3 4 5 6 7 8
Date of Amount Date of Balance Remarks

service paid as payment recovery
of D.N. per order transferred
if any to recovery
branch
9 10 11 12 13
Register No.7
Register of Unilateral Assessment Orders

Sr. No. Date of order/ R.C. No./TIN Name of the Period Amount
Date service dealer Assessed
of D.N.
1 2 3 4 5 6
Date of Date of filing Date of Date of Remarks

submission of of Return U.A.O. recovery
Application in along with cancellation transferred
Form No.304 tax due to recovery
branch
7 8 9 10 11
Register No.8
Register of File Movement
Sr. RC No./ Name Period Type of File File given to File given on
No. TIN of the
Dealer
Signature of File returned on Signature of person receiving Remark

receipant file
receiving the file
Register No. 9
Register of closed cases sent to Record Filing section
Sr. Date of R.C.No./ Name Type Act Period Sign of clerk Remark
No. transfer TIN of the of of record
of cases Dealer record section
1 2 3 4 5 6 7 8 9
Register No.10
Register of Applications Received for scroll certificate & certified
copies of Returns
Sr. Date RC Name of Application received for Action completed Remarks

No. No./ the
TIN Dealer
Scroll Certificate Certified On date Nature
copies of of action
Returns taken
Register No.11
Name of Office:-
# 4
#
( * * 4 " Called on Remarks
" (
>B;
E) Storage of Returns
Register No.1
Register of Returns received from DEA after scanning

Sr. Name of Date of No. of Main No. of Sub No. of Remarks
No. the Receipt from Main Scroll scrolls returns
Bank DEA Scrolls Nos.
Register No.2
Register for movement of Main Scrolls

Sr. Date Main Amt. No. of No. of Name & Sign of the Date of Sign.of Rema
No. scroll Sub returns design. of Official returning the rks
No. Scroll the receiving of the Official
Official record record receivi-
receiving ng
record. record
back
Register No.3
Register for providing photo copies of the returns

Sr. Date Application Name of the TIN No. of Date on Which Name & Remarks
No. Received Dealer whose Returns photocopies of Signature
from photo copies of returns made of receiving
Returns sought available official
-----------------------
Chapter 10
Inspection Procedure & Frequency
Inspection Procedure
Annual programme of Inspection is to be chalked out & intimated to the subordinate as well as
Commissioner Office.
A team of one Inspector & one clerk shall visit the office to be inspected
& draw Inspection memos.
Inspection memos shall be sent to the respective offices for compliance.
Date of memo reading shall be communicated to the respective offices.
A memo reading shall be taken by the incharge of the office
Inspection Points
Inspection of the various Registers maintained by the D.C. & S.T.O. Offices to be done.
Inspection of the procedure to be followed by the Return branch as per the manual of procedure .
Inspection of the various targets.
Inspection of the storage of the Returns.
Inspection of the cleanliness of the office.
Frequency of the Inspection
Full Fledge Inspection
One full fledged inspection of each D.C. Office in a financial year by J.C. Office.
One full fledged inspection of each S.T.O.'s Office in a financial year by D.C. Office.
Special Inspection
Special Inspection of specially important points in respect of the specific work is to be carried out.
Inspection of instructions issued by the Govt. & department given in various circulars & Rules &
Regulations is to be carried out.
Surprise Visits
Once in a month, a surprise visit is to be paid by the J.C. /D.C. to his subordinate offices to see whether the
sub ordinate offices following the Rules & Regulations.
-------------------------------------
Chapter 11
Comments on Record Filing System

Returns received along with sub scroll & main scroll shall be stored serially as per the main scroll generated
on Mahavikas.
Record generated in respect of curing incorrect returns, action in respect of short filers, late filers & non
filers, interest orders , unilateral orders, penalty orders, prosecution proceedings shall be sent to the Central
Filing system to keep it in dealers account.
Registration Record of VRS dealers after completion of follow up & other necessary actions shall be sent to
Registration Branch.
--------------------------------------
Chapter 12
Responsibility & date for updating the manual

Responsibility for updating the manual is of J.C. office .
The manual be updated once in two years in the month of April.
--------------------------------------
Chapter 13
Linkage To Other branches
In respect of doubtful returns, information/returns of such dealers to be sent to Business Audit/Enforcement
Branch.
If the demand raised as per Interest /Penalty/UAO remains unpaid,even after taking action u/s 33 of the
MVAT Act,2002 (Special mode of recovery), recovery shall sent to the Recovery branch.
Copies of the returns are to be made available to the various VAT function branches as per the
requirements.
Required information of the new registration, cancellation of registration
& change in place of business is to be obtained from the Registration branch regularly.
The information from Mahavikas is to be obtained in respect of processing of the returns.
Information of VRS dealers along with Registration record is to be obtained from the Registration Branch
regularly.
Information of R.C. Cancellation of VRS dealers to be provided to Mahavikas for updating the dealers'
master.
Information to be received :
Name of Branch Nature of Information

1) Registration 1) List of newly registered dealers - updation after every month
Branch 2) List of R.C.cancelled dealers – updation after every month
3) List of applications pending for cancellation of R.C. - quarterly
4) List of VRS dealers - quarterly
5) List of dealers registered under Luxury Tax
6) List of dealers dealing in IMFL & Country Liquor.
2) Mahavikas 1) Lists of wrong filers, short filers, late filers & non filers – until full
automation of Mahavikas System.
3)Recovery 1) Lists of applications(along with applications & returns) received
for cancellation of Unilateral Assessment Orders
Information to be sent :
Name of Branch Nature of Information

1) Business Audit Doubtful Returns
Demand raised by passing unilateral assessment order is paid by the dealer.
Copies of Returns,when asked .
2) Enforcement Doubtful Returns
Copies of Returns, when asked
3) Recovery Demand raised as per Interest Order/Penalty Order/UAO remains unpaid
Branch after taking action u/s 33 of the MVAT Act,2002
------------------------------------
Chapter 14
Computerised Module Functioning

The Return branch of STD has already started generating the main scroll numbers through Return module
of Mahavikas covering all locations. The activity of the data entry of the returns/chalan has been outsourced
to DEA. After completion of entry of data in the returns and chalans, data shall be ported into return module
of Mahavikas. There after Return branch shall perform following activities through Mahavikas return
module
1 Return allocation
2 Sample validation of data entry
3 Non filer actions
4 Defective return actions
5 Short filer actions
6 Late filer actions
7 Discrepancy reports to banks
8 Reconciliation with RBI
9 Charge transfer module
Charge transfer module is a part of return module through which
entire charge can be transferred from one officer/ employee to another.
The right of charge transfer is allotted to supervisory officer
The processes of return allocation & validation are currently available in the
Return Module as shown in the following flow charts
1) FLOW CHART -RETURN ALLOCATION
' ! () '
%& "
! "" &
# ' & D%
$ ( ( E& "
", " &
C" " ( (*
SELECT %& & & %

“ NEW ALLOCATION” *4 & " ,
& C"
"
SELECT “ MAIN SCROLL

NUMBERS to be allocated by
%& "+
using Check Box
+ + "
& &
" " C"
SELECT TRANSACTION
DATE AND PRESS “ SAVE”
BUTTON Note:- This will generate Transaction_id
and Transaction_date
New Screen displayed with
generated transaction_id with List
of selected main scrolls
A Select and Press " REMARK" button Allocating officer shall FORWARD the
transaction_id to one of the validating
Officer for reallocation of the main /
sub scrolls in that transaction to the
Select "Desk " of Validating Officer and employees , It can be done through "
Press “FORWARD” after putting remarks REMARK" functionality .
Validating Officer can get list of sub scrolls through

Main Scroll Search page using "FORWARDED "
Status.
Note:- This will Open “ Transaction
SINGLE CLICK on MAIN SCROLL NUMBER Sub Scrolls” screen , which helps in
TO BE ALLOCATED allocating sub scrolls to different
officers
Continued on Next Page

.....continued ..... Continued From Previous page
Return Allocation Process Chart
SELECT “ DESK_Id” of The Employee

for reallocation of main scroll / sub scroll
SELECT SUB SCROLLS ( any or all)

to be allocated by using Check Box
SELECT “SAVE” TO SAVE THE

ALLOCATION
Complete Allocation of All Sub Scrolls

and Main Scrolls amongst th e sub
ordinate employee as Stated Above
After such approval , At the end of

each day a process will be executed on
“APPROVE'' the allocation by using MAHAVIKAS , which will complete
REMARK functionality allocation of main scrolls, sub scrolls
and returns . The validation can be
done very next day .
2) FLOW CHART -VALIDATION
a) FLOW CHART -MAIN SCROLL VALIDATION
Note:- This will open MAIN SCROLL
Validating officer/Employee to select
search page
MAIN SCROLL from RETURN
MODULE
Note:- This will give the list of all allocated
scrolls / sub scrolls which are pending for
Validation
Select PENDING in STATUS
field and press " SEARCH"
Note:- This will Open the Selected Main Scroll ,
which shows Details like Scroll Number , date , Bank
name , Amount, Number of Sub Scrolls and List Of
Sub Scrolls with Branch name , date and Amount .
Select Scroll Number to be The information of Missing sub scroll ( not sent by
validated and Press " EDIT" Bank) will appear in the "REMARK" functionality.
Note:- In case validating employee has been alloted

large number of main scroll and he wants some of the
main scrolls to be reallocated to other employees having
less number of main scrolls , then he can forward main
scrolls to validating officer.( This will Forward only
main scroll page. Sub scrolls and chalans under sub
scrolls have to be forwarded separately ) It can be done
through " REMARK" as under ...
Select RCC or chalan and Press " REMARK" button
Select "Desk " of Validating Officer and Press

“FORWARD” after putting remarks
Validating officer can get list of Main scrolls

through Main Scroll Search page using "Forwarded
" Status. Who can forward these main scrolls to
other employees with the help of Remark
Functionality
In case incorrect information is
Validate information from found in respect of Scroll No , date
Physical Copy Main Scrolls . Bank name , Amount , No of sub
scrolls or Details like branch name ,
amount , sub Scroll No and date , no
chalans in the list of sub scrolls then
Make correction and again

Then Prcoceed to Validation of Press " SAVE" to save the
Sub Scrolls ... changes made
b) FLOW CHART -SUB- SCROLL VALIDATION

Note:- This will Open the Selected Sub Scroll
, which shows Details like Sub Scroll Number
Select Sub Scroll Number to be , date , Bank and Branch name , Amount,
validated and Press " EDIT" Number of Chalans and List Of Chalans s
with Dealer name, TIN , date, Act , Return
Type and Amount .
Note:- If some chalan or RCC is missing ( i.e. Link

bank has not sent the chalan or RCC along with main
scroll) , then such remark will appear in the
"REMARK" functionality.
Note:- In case validating employee Want To Re allocate the

Sub Scrolls for validation to another employee , he has to
forward to validating officer who in turn can forward the
sub scrolls to other employee for validation. ( This will
forward only sub scroll. And Chalans under the sub scrolls
have to be forwarded separately.) It can be done through "
REMARK" as Described in Main Scroll Validation Chart
...
Note- In case of RCC / Chalans

Validate information from under Old act and RCC 201 to 208 are
Physical Copy Sub Scrolls . ported in the Form of MVAT returns
Form 221 to 225 and Chalan 210 ,
hence these should not be treated an in
correct
* * * +
* ( * , ,
- *. + , + , .
' / ' + , , * ,
+ , .
. .
0 / * *
. * 1 1 2 .
. *. +
c) FLOW CHART -RCC/ CHALAN VALIDATION
%& & ( "% 1

* . 3 +( ! /& & #
( 2 1 + /" / "/ # /
' 1 4 /
%& 4 " , & %

% 1 "
, / & "
" & & " +
, " *4 +
" F %$ %GF # + "
( - " ***
&4 % 1 " "

+ +
"% :B9 :B@ "
.) * ) .
- ::9 ::= "
:9B / " +
" 4 ( ,
" H ( / 3
, + / 3 , + "
& " ,
, % 1
* ' ) * * * ' )
3 . *
. . 3 4'
+ . . 3
. 5 .
If there are defects ( Committed ) * *

By Dealer ) which cant be detected 4 .) * )
by Automation System (Non 5 4 .+ * 3
+ * ' * 5
Numerical Defects )
Press " Category A Defects " Button 0 / 2 * *
. . * , .
* . * ' *
1 1 2 . ' *
1 1 *
Forward the Validated RCC / Chalan 1 1 2

to Approving Authority for . .
Approval using 'REMARK" ) ' *
(
-----------------------
Work Relating To Paid Refund Advice Notes
The paid Refund Advice Notes are brought from R.B.I./S.B.I. by the Return Branch along with
scroll. The Advice Notes are checked with the scroll and if any discrepancy is found, it is pointed out to the
R.B.I./S.B.I. for further clarification/reconciliation. Thereafter, the Advice Notes are transferred to the
refund granting authority for reconciliation with the
refund issue record.
It is learnt from the J.C.(HQ)I, that, one specific desk for this purpose has been created in
the Commissioner's Office. The detailed process in this behalf is required to be devised by that desk.
------------------------------

Return Procedure

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Return Procedure

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SALES TAX DEPARTMENT

MAHARASHTRA STATE, MUMBAI

Sr. No. Name Designation

8) Interface with other branches of STD 66

Register No.2 - Register of defect Memos 90

Objectives/Functions of the Return Branch :

To collect returns, sub-scrolls & main scrolls

1) From Authorised Banks

To process VAT Returns and payments.

1) To generate main scroll number on Mahavikas system

2) To handover returns along with scroll

3) To validate returns on sample basis &

4) To issue defect notices to wrong filers

5) To follow up & ensure the reduction of non filers

6) To follow up short filers

7) To follow up late filers

8) To follow up the VRS dealers & to cancel their

9) To pursue available recovery upto bank/debtors attachment

10) To find out non traceable dealers

Proper Storage of the Returns & Scrolls

To provide information/returns to other branches of

S.T.D. Counter Return without payment Files Return-cum-chalan

Defective Non-filers Short Filers Late filers

Interest Orders Penalty Orders

If still not recovered

SALES TAX OFFICER SALES TAX OFFICER SALES TAX OFFICER

SANCTION & DISTRIBUTION

RETURN SECTION FOR MOFUSIL

Sales Tax Officer Sales Tax Officer

Sales Tax Inspector Clerk Sales Tax Inspector Clerk

D.C.(RETURN) 1 D.C.(RETURN) 2 D.C.(RETURN) 3

1) Revenue receipt 1) Collection & Processing 1) Return Counter

STO(1) STO(8) STO(15) Return counter

STO(14) STO (20)

Relevant Provisions of the Act, Rules, Notifications, Internal

Section 20- Returns & Self Assessment

(2) Notwithstanding anything contained in sub-section (1), the

Rule 17 - Submission of Returns

3. 223 All dealers who are –

Explanation IV :- Where a dealer is required under rule 18 to file

Rule 18 – special provisions for first and last return

Rule 20- Complete and Self Consistent Return

Relevant penal provisions

For non compliance to Notice issued by the authority

For failure to file return within prescribed time

Limitation period for passing penalty order.

(11) No order levying penalty under the foregoing provisions of this

Monitory limits for imposition of penalty

Section 74 Offences And Penalties

(b) furnishes a false return, or

(3) Whoever ,--

(d) fails without sufficient cause, to furnish any information

(p) fails without sufficient cause to comply with requirements of section 65

Payment of Tax etc.

Provided that, the Commissioner may, in respect of any particular dealer

Rule 41 Time for payment.

Rule 46 – Notice for Payment of tax not paid according to returns

Deduction of tax at source

Provided that, the Commissioner may, reject such application, or after

BEST JUDGMENT ASSESSMENT OF NON – FILER

Production of Accounts & Documents

Section 64. (1) The Commissioner may, subject to such conditions

Rule 70. Form of notice for production of

Penalty for breach of any Rules