.: T A X C O N :.

VAT :

Amendment of Registration Certificate
If there is any change in business, it should be amended by making an application within a period of 30 days (in general) from the date of happening of event.

Sl.No.	Particulars	Form	Section/Rule	Time Period
1	Sale/disposal of whole or part of business	6	27A/12(1)	30 days from date of change
2	Change of ownership	1,27B,Annex-A,B	12(3)	30 days from date of change
3	Business Discontinued	Simple Application	27A/12(4)	30 days from date of discontinuation
4	Change in place or opening a new place,factory,branch or warehouse	Simple Application	27A/12(4)	30 days from date of change
5	Closure of place of business or warehouse	Simple Application	27A/12(4)	30 days from Closure
6	Change in name	1	27A/12(5)	30 days from date of change
7	Change in nature of business	1	27A/12(5)	30 days from date of change
8	Change in accounting year	Simple Application	27A/12(1)	30 days from date of Discontinuation
9	Change in goods dealt	Simple Application	27A/12(6)	30 days from date of change
10	Change in constitution Board of Directors of a company	1 Annexure-B,	27A/12(10)	30 days from date of change
11	Change in partner due to resignation	1 Annexure-A,B,	27A/12(3)	30 days from date of change
12	Change in partner due to death	1 Annexure-A,B,	27A/12(3)	30 days from date of death
13	Death of Proprietor	1 Annexure-A,B,	27A/12(3)	30 days from date of death
14	Accepting Digital signatures	Simple Application	27A/12(7)	15 days from date of discontinuance
15	Opening new bank account or closing existing account.	Simple Application	27A/12(8)	30 days from opening of new account or closing old account
16	Change in manager or other officer of a registered dealer.	7	27D/13	30 days from date of change

Compulsory Issue of Tax Invoice, Cash Memo or Bill :
Input tax credit is fully based upon the documentation of tax invoice, cash memo or bill. According to clause (48) of section 2 read with rules 91 and 92,every dealer having gross turnover of sales above an amount specified shall issue to the registered purchasing dealer a serially numbered tax invoice with the prescribed particulars. The same should be signed and dated by the dealer or his regular employee, showing the required particulars. The dealer should keep a counterfoil or duplicate of such tax invoice duly signed and dated.

Compulsory Issue of Tax Invoice, Cash Memo or Bill :
Input tax credit is fully based upon the documentation of tax invoice, cash memo or bill. According to clause (48) of section 2 read with rules 91 and 92,every dealer having gross turnover of sales above an amount specified shall issue to the registered purchasing dealer a serially numbered tax invoice with the prescribed particulars. The same should be signed and dated by the dealer or his regular employee, showing the required particulars. The dealer should keep a counterfoil or duplicate of such tax invoice duly signed and dated.

Revised Return :
According to section 32(3) a revised return may be filed if any mistake is detected in any return only when the omission or error is accidental or honest in contradistinction of making deliberate or false entries. Revised return of a particular quarter can be filed before the due date of returns of next quarter. Otherwise it will be merely treated as a revised statement.

Liability and calculation of interest :
According to section 33, a dealer is liable to pay interest if he fails to make full payment of tax due according to the return furnished within the prescribed period, or furnishes the return after due date with or without full payment of tax in accordance with the return, or fails to make full payment of tax for any tax period or failure to file any statutory return up to assessment period, or fails to make reverse credit of any input tax within a tax period, a failure to pay/delayed payment of assessed dues under section 34.The rate of simple interest is 12% per annum for the period commencing on the date immediately following the prescribed date for payment of net tax and up to the date prior to the date of payment of such net tax. The department shall in prescribed manner pay simple interest @12% per annum for the period of delay /default in making refund to registered dealers having EOU or situated in SEZ or not liable to pay tax under section 14 and whose nature of business is such that for any year the input tax credit exceed the output tax payable for such year, the excess amount of net tax credit over output tax for such year or by virtue of any order passed in appeal, revision, review under section 84 to 88 or otherwise ,the interest will be payable from the first day of month next following three months from the date of such order.

Sales Tax Deduction at Source :
According to section 40, deduction of sales tax is attract at the time of making payment to a contractor in cash or cheque or pay order or draft or any thing toward execution of work contract. There are two types of rate for STDS
(i) @2% ,when making payment to a registered contractor,
(ii) @4%, when making payment to an unregistered contractor, under WB VAT Act 2003.
There is no threshold for which STDS has to be deduct .Even at the time of payment of Re 1.00 to a contractor STDS is applicable. Any person who carried out a works contract in West Bengal is a contractor which includes an agent, partnership firm ,government, a statutory body/authority, a Local body, a trust, a Company, Club liquidator or a receiver appointed by a court, a co-operative society or association of persons.
Any government, local authority, corporation or body established by or under any law,company,co-operative society, educational institution or promoters are liable to deduct sale tax at source but an individual or proprietorship concern or partnership firm (other than a promoter) is not eligible to deduct tax from the payment made to a contractor in execution of a work contract.

Way Bill:
According to sec.73 where any consignment of goods (except schedule -‘A’ goods which are tax free under section 21,but including raw jute) is imported or brought into west Bengal by dealer or any other person on his own account from any place outside West Bengal, and such goods reaches railway station, steamer station, port or Airport in West Bengal, such dealer or Person, shall before taking delivery of such goods, present before sales tax officer or assistant sales tax officer of the said check post a way bill in form no.50 in duplicate obtainable in the prescribed manner from the sales tax office and he shall also present the railway receipt, air consignment note, bill of lading or any other document like nature in respect of such consignment of good or counter signature and endorsement by such officers. After verifying correctness of the waybill, the concern S.T.O or A.C.S.T shall return the duplicate copy of the way bill so endorsed along with the said document presented before him. Way bill is not required where consignment of goods being transported by any person or on his account is his personal effect. The validity of waybill is one year from the date of issue .According to rule 103,if the driver or person in charge of the vehicle transporting any consignment of goods fails to present the waybill at the time of entry of such vehicle into the area of the check post,he may on request shall allow time,sales tax officer or assistant sales tax officer of the check post not exceedin 48 hours from the entry of such vehicle.

Following document are required for outbound goods :-

According to section 32(3) a revised return may be filed if any mistake is detected in any return only when the omission or error is accidental or honest in contradistinction of making deliberate or false entries. Revised return of a particular quarter can be filed before the due date of returns of next quarter. Otherwise it will be merely treated as a revised statement.

Liability and calculation of interest :
According to section 33, a dealer is liable to pay interest if he fails to make full payment of tax due according to the return furnished within the prescribed period, or furnishes the return after due date with or without full payment of tax in accordance with the return, or fails to make full payment of tax for any tax period or failure to file any statutory return up to assessment period, or fails to make reverse credit of any input tax within a tax period, a failure to pay/delayed payment of assessed dues under section 34.The rate of simple interest is 12% per annum for the period commencing on the date immediately following the prescribed date for payment of net tax and up to the date prior to the date of payment of such net tax. The department shall in prescribed manner pay simple interest @12% per annum for the period of delay /default in making refund to registered dealers having EOU or situated in SEZ or not liable to pay tax under section 14 and whose nature of business is such that for any year the input tax credit exceed the output tax payable for such year, the excess amount of net tax credit over output tax for such year or by virtue of any order passed in appeal, revision, review under section 84 to 88 or otherwise ,the interest will be payable from the first day of month next following three months from the date of such order.

Sales Tax Deduction at Source:
According to section 40, deduction of sales tax is attract at the time of making payment to a contractor in cash or cheque or pay order or draft or any thing toward execution of work contract. There are two types of rate for STDS
(i) @2% ,when making payment to a registered contractor,
(ii) @4%, when making payment to an unregistered contractor, under WB VAT Act 2003.
There is no threshold for which STDS has to be deduct .Even at the time of payment of Re 1.00 to a contractor STDS is applicable. Any person who carried out a works contract in West Bengal is a contractor which includes an agent, partnership firm ,government, a statutory body/authority, a Local body, a trust, a Company, Club liquidator or a receiver appointed by a court, a co-operative society or association of persons.
Any government, local authority, corporation or body established by or under any law,company,co-operative society, educational institution or promoters are liable to deduct sale tax at source but an individual or proprietorship concern or partnership firm (other than a promoter) is not eligible to deduct tax from the payment made to a contractor in execution of a work contract.

Way Bill :
According to sec.73 where any consignment of goods (except schedule -‘A’ goods which are tax free under section 21,but including raw jute) is imported or brought into west Bengal by dealer or any other person on his own account from any place outside West Bengal, and such goods reaches railway station, steamer station, port or Airport in West Bengal, such dealer or Person, shall before taking delivery of such goods, present before sales tax officer or assistant sales tax officer of the said check post a way bill in form no.50 in duplicate obtainable in the prescribed manner from the sales tax office and he shall also present the railway receipt, air consignment note, bill of lading or any other document like nature in respect of such consignment of good or counter signature and endorsement by such officers. After verifying correctness of the waybill, the concern S.T.O or A.C.S.T shall return the duplicate copy of the way bill so endorsed along with the said document presented before him. Way bill is not required where consignment of goods being transported by any person or on his account is his personal effect. The validity of waybill is one year from the date of issue .According to rule 103,if the driver or person in charge of the vehicle transporting any consignment of goods fails to present the waybill at the time of entry of such vehicle into the area of the check post,he may on request shall allow time,sales tax officer or assistant sales tax officer of the check post not exceedin 48 hours from the entry of such vehicle.

Following document are required for outbound goods :-

SL No.	For Inter state sale	For Stock Transfer
1	2 copies of tax invoice.	Two copies of stock transfer challan.
2	Way Bill in form no. 51 or challan in Duplicate	Way bill in Form No.51 or Branch Transfer note/challan in duplicate
3	Consignment note of the transporter.	Consignment note of the transporter.

Committing an offence, imposition of penalty & late fee :
Whether an offence committed by a dealer, every person who, at the time of committing an offence, was in charge and responsible to the dealer for conducting the business, is liable to be prosecuted against and punished. Therefore if any offence committed with the concept or , connivance of , or is attributable to any neglect on the part of, any director,manager,secretary,or other officer shall also be deemed to be guilty of the offence and shall be liable to be prosecuted against and punished accordingly.

SL.No.	Offences	Late fees/Penalties
1	Dealer failure to file statutory return in time	Not exceeding Rs.2, 000.00 for the first month of delay or default and not exceeding Rs.500.00 from the next month onward.
2	Dealer failure to take registration with 90 days from the date of liability.	Minimum Rs.500.00 & maximum Rs.1, 000.00 for each month of default.
3	Transporter failure to get himself enrolled within 30 days from the date of commencement of business.	Maximum Rs.1, 000.00 for each month of default.
4	Dealer failure to furnish necessary information regarding any change/transfer/partial transfer/management of business	Maximum Rs.5,000.00
5	Dealer failure to furnish information or furnishes incorrect information in respect of transfer of goods other than by way of sale.	Minimum 15% & maximum 25% of the value of goods transferred
6	Dealer failure to file VAT Audit report in form No.88 within prescribed period	Maximum Rs.5000.00
7	Dealer fails to deposit the amount of tax illegally collected.	Not less than the amount of tax collected but, not greater than twice.
8	Dealer failure to make STDS or deposit the same or issue certificate of deduction for STDS	Not exceeding twice the amount of tax assessed in provisional assessment,
9	Dealer failure to make payment of net tax for any tax period assessed in provisional assessment within a prescribed time.	Not exceeding 50% of the amount of tax so assessed in assessment.
10	Dealer failure to furnish statutory return in time and deposit net tax within prescribed period.	Rs.5,000.00 or double amount of tax so assessed in assessment,
11	Dealer fails to issue proper tax invoice ,bill or cash memo in accordance with the act,	Rs.5,000.00 or double amount of tax, whichever is higher
12	Whether goods transported without valid way bill or documents prescribed u/s 107 or 108,or description ,quantity ,weight or value of good is variance or false with the document or either the consignor or the consignee is not in existence at the disclosed place.	Not exceeding 50% of the value of seized goods.
13	Whether the transporter or dealer or person deliver the seized goods to the owner or consignee without permission of the authority.	Not exceeding 25% of the value of seized goods.
14	Whether goods transported without way bill and such goods are not available for seizure,	Not exceeding 25% of the value of seized goods.
15	Whether the goods transported on behalf of dealer and the dealer is not in existence at the address given in such document,	Not exceeding 25% of the value of seized goods.
16	Whether the dealer suppress any purchase or sale or furnishes incorrect statement in this respect or submitted incorrect particulars in return with an intention to evade net tax payable	Not exceeding twice the amount of net tax so evaded.
17	Person organizing exhibition –cum-sale of goods without obtaining permit from the government	Not exceeding Rs.50,000.00
18	Whether a dealer furnishes incorrect or fabricated statement or forged documents with an intention to deceive the government, by granting deferment, exemption or remission of tax.	Not exceeding 100% of tax if he would not granted such deferment, exemption or remission.