SALES TAX CIRCULAR NO. 1 OF 1997,

DATED 12TH JANUARY, 1997

 SUBJECT:            TAX PAYER’S PROFILE—ARREARS AND REFUNDS.

 

            In view of the fact that the potential of sales tax computer system is not being optimally utilized to give complete profile of taxpayers specially in respect of penalties, arrears, and refunds, etc., it has been decided to introduce a procedure, which will be partly manual but will be effectively supported by the computer cells of the Collectorates. The following documents are accordingly prescribed and procedure laid down for necessary information and compliance by all concerned.

(1)               An “Arrear Register” in the prescribed form (Annex-I) shall be maintained by the Assistant Collector (Assessment & Processing) which will contain the information regarding all adjudication proceedings whether under section 11 or 36 or any othe4r provisions of the Act. A “Recovery Register” in the prescribed form (Annex-2) shall be maintained by the Assistant Collector (Enforcement & Collection Division). Similarly, a “Refund Payment Register”. In prescribed form (Annex-3) shall be maintained by the Audit & Refund Division in each and every Sales Tax Collectorate.

(2)               Whenever an order-in-original is passed by the adjudicating officer, he will dispatch the following documents to the tax payer.

 

(i)                  Copy of order-in-original.

(ii)                A return-cum-challan form (ST.I/V.2) duly affixed on the reverse with a block stamp and having following columns duly filled in by the adjudicating officer or his staff:

(i)            Tax payable____________________________________________

(ii)           Penalty_______________________________________________

(iii)         Rate of additional tax and date from which it is to be charged (for calculation of its exact amount on the day of payment).________________

(iv)         Any other liability.______________________________________

(v)          Total_________________________________________________

(3)               The particulars of the order-in-original and the adjudged amount etc., shall be entered in the “Arrear Register” which will be updated whenever any order-in-original is passed and issued. The register shall be sent to computer section on the 1st and 15th of every moth for making entries in the computer file for updating of the tax payer’s profile. After the updating of computer file, the entries in the register will be signed and stamped “Posted in computer” by the I/c computer section and the register will be sent back to the concerned Division.

(4)               In case of payment against order-in-original on the return-cum-challan form, bearing the stamp, the said return will be segregated and dealt with separately.

(5)               In the first week of each month, the computer section shall generate a report to be known as “statement of recovery of arrears” in the prescribed form (Annex-4) and endorse it to Assistant Collector “Processing & Assessment Division” for updating of “Arrear Register”. Second copy of this statement shall be sent to the Assistant  Collector (Enforcement  & Collection) for updating of “Recovery Register” and further action including the initiation of recovery proceedings against those tax payers who fail to pay the adjudged amounts.

(6)               The “Enforcement & Collection Division” shall update the “Recovery Register” as and when recoveries are made and shall send this register to computer section on 1st and 15th of every month for updating the tax payer’s profile. After updating of computer section file the entries in the register shall be signed and stamped “Posted in the computer” by I/C computer section and the register will be returned to Assistant Collector “Enforcement & Collection Division”.

(7)               The following procedure shall be adopted for monitoring/recording of refund payments:--

(a)       The Audit & Refund Division shall maintain “Refund Payment Register” in the prescribed form and details of each refund payment shall be entered in that register by the refund section.

(b)        At the end of each month the register shall be sent to the computer section for making entries in the computer file and updating the tax payers’ profile. After updating of computer file, the entries in the register will be signed and stamped “Posted in computer” by the I/c computer section and the register will be returned to the Audit & Refund Division.

“ANNEX-1”

 ARREAR REGISTER

(To be maintained by A.C. (Processing & Assessment)

S.No

O-IN-O Number & Date

Name & Registration No. of Taxpayer

Tax Period

Tax Adjudged

Penalty

Additional Tax

Total Amount

Amount Actually paid

Date of payment

Balance (if any) to be recovered

Remarks

1

2

3

4

5

6

7

8

9

10

11

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“ANNEX-2”

 RECOVERY REGISTER

 (To be maintained by A.C. (Enforcement & Collection)

S.No

Computer Reference Number & Date

Name & Registration No. of Taxpayer

Tax Adjudged

Additional Tax

Penalty

Total Amount

Date on which Recovery Proceeding Initiated

Amount Recovered

Date of Recovery

Balance Recoverable on

Remarks

1

2

3

4

5

6

7

8

9

10

11

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“ANNEX-3”

 REFUND PAYMENT REGISTER

 (To be maintained by A.C. (Audit & Refund Division) 

S.No.

Name & Registration No. of the Taxpayer

Tax Period

Refund Claimed

Refund Sanctioned

Cheque No. & Date

Remarks

1

2

3

4

5

6

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 “ANNEX-4”

 STATEMENT OF RECOVERY OF ARREARS

To:          (i)                A.C. (Processing  & Assessment)

                (ii)                A.C.(Enforcement & Collection) for initiating Recovery Proceedings

S.No

O-IN-O Number & Date

Name & Registration No. of Taxpayer

Total Amount Due

Due Date of Deposit

Amount actually paid

Date of Payment

Balance (if any) to be recovered (i.e. 4-6)

Remarks

1

2

3

4

5

6

7

8

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                         (Signature)

I/C Computer Section

                                                                                                               Dated