Online Downloading of Central Statutory Forms under Delhi CST

Online Downloading of CST Forms under Delhi VAT

A. New Conditions by DVAT Deptt. for Online Downloading of Central Statutory forms under CST

The DVAT Deptt. has specified certain conditions for downloading the Central Statutory forms online, vide DVAT Notification dt. 08/01/2016 and Circular dt. 27th Jan., 2016, as under:

The facility of auto-downloading of the forms shall not be available to the dealer for the tax period, where the ratio of sale to purchase, including stock transfer and local transactions, falls below 45%. The statutory forms in such cases shall be available for auto-downloading on the basis of sale and purchase of next quarter.

In other words, ratio of sale to purchase shall be worked out for both the quarters cumulatively. If the ratio still falls below 45%, then forms shall be allowed to be downloaded on the basis of sale to purchase ratio of third quarter and so on.

The purchase of capital goods shall be kept out of the proposed mechanism which shall be available only to eligible dealers. The download of forms shall also be further subject to the following checks/in addition to conditions laid down in the aforesaid Rules:

1. Items should be allowed on the R.C.

2. The dealer for whom forms are obtained should not be cancelled dealer.

3. There is no adverse material on record.

DVAT Notification dt. 8th Jan. 2016 Conditions for Downloading of Central Statutory Forms

DVAT Circular dt 27 Jan 2016 for modification of Circular 30 of 2015-16

B. DVAT Deptt to curb growing tendency of misuse of the facility of auto donwload facility of statutory forms under CST by unscrupulous dealers

The DVAT Deptt issues central statutory forms online without any manual intervention since the middle of year 2012, mainly for making inter-state purchases at concessional rate or for inward stock transfer. The details of such inward supplies are recorded by dealers in Annexure 2A filed along with return. The system of auto downloading of statutory forms works on the premise that purchases or inward stock transfers made by the dealers are resulting into local or inter-state sale or stock transfer.

Recently, it has been noticed by the DVAT Deptt. that some dealers are downloading the statutory forms amounting to crores of rupees without showing any sale or stock transfer during the relevant tax period or showing negligible sale and there is a growing tendency of misuse of the facility by unscrupulous persons.

Therefore, to curb such practices, it has now been decided by the DVAT Deptt. that the facility of auto-downloading of the forms shall not be available for a tax period in cases where the ratio of purchase and sales, including stock transfer and local transactions falls below 60%.  The statutory forms in such cases shall be available for auto-downloading on the basis of sale and purchase of next quarter. In other words, ratio of purchase and sale shall be worked out for both the quarters cumulatively. If the ratio still falls below 60%, then forms shall be allowed to be downloaded only after scrutiny of returns by the ward officer concerned. It has further been decided that factum of purchase of capital goods shall be kept out of the proposed mechanism which shall be available only to eligible dealers. However, purchase of capitals goods shall be allowed to dealers eligible to make such purchases only. Validation checks already in place for downloading of forms shall continue in the usual manner.

Further, the dealers who have applied for cancellation of registration or ward officer has issued show cause notice for cancellation or whose registration has been cancelled for any reason, shall not be able to download the forms without the approval of concerned ward officer. 1940045

DVAT Circular No. 30 of 2015-16 dt. 18/11/2015

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