In era of competition every client is looking for complete solution under one roof. Many of us think that Haryana VAT is not our cup of tea. But I realized that it can be our cup of tea and it is very easy to deal in Haryana VAT. Here we will try to understand some BASIC practical provisions related to Registration, Return and payment under Haryana VAT:
When a person/dealer is liable to pay tax under the HVAT Act? Or Who is liable for registration under the HVAT Act? :
Every dealer liable to pay tax under the HVAT Act is liable for registration under the Act.
|Description of class or classes of person / dealers||Taxable Quantum||Day on and from which the person/ dealer is liable to pay tax/registration|
||NIL||On and from the day of first sale or purchase|
||NIL||On and from the day of import of goods into State for the first time.|
||NIL||On and from the day of purchase of such goods by him in the State for the first time.|
||NIL||On and from the day of first supply or distribution in the State|
||NIL||On and from the day his gross turnover in any year first exceeds the taxable quantum|
||Rs. 5,00,000||On and from the day following the day his gross turnover in any year first exceeds the taxable quantum.|
||NIL||From the date specified in the registration certificate.|
- Where a dealer is covered under more than one of the class or classes mentioned in the Table above, the liability to pay tax shall commerce from the earliest day he becomes liable to tax.
- A dealer who deals exclusively in exempted goods is not liable to pay tax under the Haryana VAT Act, 2003.
- Voluntarily Registration: Any dealer not liable to pay tax under the HVAT Act but who does not deal exclusively in exempted goods can apply for voluntarily registration under the HVAT Act.
Practical aspects of Registration:
- Prescribed forms:
– Form A1 with Annexureà For registration under Haryana VAT (within 15 days from his Becoming liable to pay tax under the HVAT Act)
– Form A3 For registration of casual trader* under Haryana VAT (at least 3 days before Commencing his business in the State)
– Form A For registration under CST (within 30 days of his becoming liable to pay tax under the Act)
– All application must be filed in online mode from 05/08/2015 onwards.
* “Casual Trader” means a dealer who imports into and sells goods in the State for a period NOT exceeding 30 days at a time.
- Fees For Registration (which is to be paid in appropriate Government treasury or in the form of Court fee stamps):
Fee for Registration under VAT act Rs. 500 (recently increased from Rs. 100 to Rs. 500)
Fee for Registration under CST act Rs. 25
- Basic Documents required for registration:
- Latest passport size photos and identity proof* of proprietor/ALL the partners/ Karta/ Chairman, MD, Director or principal officer of the company. (*Voter ID/Passport/Ration Card (with Photo)/Driving License/Bank passbook (with photo)/any other document issued by the government having photo ID).
- Signed Photo of the business premises on left and right sides to the ascertain its proper location.
- 2 sureties of Rs. 50,000 each for HVAT registration and CST registration/Bank Guarantee of Rs. 50,000 for each one. The surety should be duly attested by a Gazetted officers/notary public/bank manager.
- Attested copy of PAN of proprietor/business entity as the case may be.
- Attested copy of rent deed/title deed as the case may be.
- First Inter-state purchase bill for CST registration.
- Online aspect:
- Download e registration utility from haryanatax.gov.in
- Fill up the utility
- Register on haryanatax.gov.in
- Submit registration form online
- Submit physical copy of Application form along with documents to Local VAT department.
Practical aspects of VAT Returns:
VAT Return Forms:
There are different types of forms for different class of dealers/persons. Some forms are to be filed quarterly and some forms are to be filed annually.
The Forms and the due dates for filing returns by different class of dealers/persons are as under:-
Primary VAT return forms
|S.No.||Form||Applicable for Class of dealer/person||Frequency||Due Date|
|1.||Form VAT-‘R1’||Registered dealers/persons holding registration certificate or whose application for registration is pending.||Quarterly return||On or before the last day of the month following the quarter.|
|2.||Form VAT-‘R4’||Food grains procuring agencies who are liable to deduct tax at source under Rule 33(1)||Quarterly return||On or before the last day of the month following the quarter.|
|3.||Form VAT-‘R4A’||Contractees who are liable to deduct tax at source under Rule 33(2)||Quarterly return||On or before the last day of the month following the quarter.|
|4.||Form VAT-‘R5’||Casual Trader||–||Within 3 days after closure of business in the State|
|5.||Form VAT-‘R6’||Lumpsum Contractor||Quarterly return||On or before the last day of the month following the quarter.|
|6.||Form VAT-‘R7’||Lumpsum retailer||Quarterly return||On or before the last day of the month following the quarter.|
|7.||Form VAT-‘R8’||Lumpsum Bricks Kiln Owner||Quarterly return||On or before the last day of the month following the quarter.|
|8.||Form VAT-‘R11’||Lumpsum ply board manufacturer||Quarterly return||On or before the last day of the month following the quarter.|
|9.||Form VAT-‘R12’||Dealers required to file return through notice by the Assessing Authority||Quarterly return||On or before the last day of the month following the quarter.|
Additional compulsory VAT return forms
|10.||Form VAT-‘R2’(Annual Return)||Registered dealers/persons holding registration certificate or whose application for registration is pending.||Annually||On or before 30th November of the immediately succeeding year.|
|11.||Form VAT-‘R3’(Annual commodity tax return)||Registered dealers/persons whose tax liability exceeds Rs. 1,00,000 in the last preceding Financial year.||Annually||On or before 31st October of the immediately succeeding year.|
- Download e return utility from haryanatax.gov.in
- Fill up the utility
- Login on haryanatax.gov.in
- Submit return form online
- Submit physical signed copy of return within 15 days of filing of return to Local VAT office (if not digitally signed).
Practical aspects of payment under HaryanaVAT:
- A casual trader is required to make payment of tax daily on the sales made during the previous day.
- Due Dates of payment of tax by the lump sum dealer:
|S.No||Types of Lump sum dealer||Due date for payment of tax|
|1||Brick Kiln Owner||Equal quarterly instalments payable in the first 45 days of beginning of the quarter or equal monthly instalments payable on or before the 15th day of each month.|
|3||Works Contractor||Quarterly within 30 days following the close of quarter|
|4||Retailer||Quarterly within one month of the close of the quarter|
- Due dates for payment of tax by the dealers other than lumpsum dealers and casual traders
|S.No||Types of Lump sum dealer||Due date for payment of tax|
|1||whose aggregate liability to pay tax under the HVAT Act & CST Act during the preceding year was Rs. 1,00,000 or above||Equal monthly installments payable by 15th day of the close of the month|
|2||Others||Equal quarterly installments within the month immediately following the quarter|
Note: If last date for payment of tax or any other amount due under the Act is a bank holiday, then the last date for payment of dues under the Act shall be the first banking day following such holiday or consecutive holidays.
- Online aspect of payment:
Mode of payment: An assessee can make a payment in 2 way. An assessee can make payment by demand draft in favour of assessing authority (City name). An assessee can also pay electronically.
Payment by demand draft:
Step 1 : Prepare demand draft in the favour of Assessing Authority (City name). Please note that there must be different demand draft for VAT payment, CST payment or any other payment.
Step 2 : Prepare online challan through https://egrashry.nic.in/. Open this site. Login through using guest as user id and password both. (Assessee can also make an own login id through sign up). Fill up the challan and select manual in type of payment. Please note down the GRN number reflected on screen for future tracking.
Step 3: Take printout of challan and deposit it to local VAT office along with demand draft. (Please note that if detail of challan is duly filled in VAT return including GRN no., then no need of submission of physical copy of challan. Only demand draft can be submitted.)
Step 1 : Login through https://egrashry.nic.in/. Open this site. Login through using guest as user id and password both. (Assessee can also make an own login id through sign up). Step 2 : Fill up the challan and select e-banking in type of payment. Select any bank. These are only collecting bank list. After proceeding with any bank there are all banks available for payment.
Step 3 : No need to submit physical copy of challan to Haryana VAT office.
CA Lalit Aggarwal,
Team Connecting CA’s…
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