Revised DVAT Guidelines for Downloading of Central Statutory Forms under CST

DVAT’s Revised Guidelines on Online Downloading of CST Forms under Delhi CST

DVAT Deptt has further modified/ revised guidelines for Online Downloading of Central Statutory forms under Delhi CST, i.e. C Form, F Form, H Form, etc. vide Circular No. 8/2017-18 dt. 6 Jun. 2017. Besides, DVAT Deptt is making efforts to curb growing tendency of misuse of the facility.

Revised Guidelines for Downloading Statutory Forms: DVAT Circular No. 8/2017-18 dt. 6 Jun. 2017

The DVAT Deptt. has further modified/ revised the Guidelines for issue of Central Statutory Forms, to curb the misuse of the facility of auto downloading of Statutory Forms provided at the dealer’s end in the online module.

As per revised guidelines, the system/ EDP branch will put a block on this facility and the Assessing Authority/ Ward Incharge may take appropriate action on such blocked forms after verifying the due purchases viz-a-viz the sales and other relevant documents. The auto downloading facility will be blocked only for those dealers who have been granted Provisional Registration or Final Registration Certificate on or after 1 Apr. 2015, where:

1. Dealers who have reflected High GTO and Nil/ Negligible tax. High GTO/ Nil  tax cases shall be construed to mean GTO equal to or more than Rs. 1 Crore and total tax paid equal to or less than 0.5% of the GTO (both conditions  essential).

2.  Dealers who have not filled up the Bank Account No., E-mail ID, Mobile  Number & UID (AADHAR) Number in their Dealer Credential.

3.  Dealers who have not filed DP-I form till date.

Besides DVAT Deptt. will monitor download of individual Statutory Forms in excess  of Rs. 10 Lakhs. Furthermore, DVAT Deptt. may immediately block TIN of the dealer, followed with physical inspection of the firm by the VATI and issuance of notice u/s 59(2) of the DVAT Act, 2004 by the VATO, directing the dealer to produce, within a  period of 15 days, the requisite documents, to substantiate the transactions/ purchase, that relates to the form(s) downloaded.

If the VATI finds that dealer is not found functioning/ existing at the given address, an SCN in Form DVAT 10 may be served. After providing the opportunity of being heard, DVAT Deptt may cancel registration of the dealer as well as can initiate other possible actions towards recovery of any amount of tax, interest, penalty and other amounts due.

Revised Guidelines for Downloading Statutory Forms: DVAT Circular No. 1/2017-18 dt. 3 Apr. 2017

It has been observed, of late, that some of the dealers especially a majority of those who have been granted Registration Certificate provisionally, i.e. whose credentials are yet to be fully established, are found engaged in downloading of higher amount of Statutory Forms by showing inter-state transactions. This is happening despite availability of a variety of checks and legal recourses, for the purpose of restraining such unscrupulous dealers from illegal downloading of statutory forms, nothing much seems to have been done on the ground.

Thus, in the best interest of the Department, it is considered appropriate to resort to a more pragmatic approach, to thwart any likelihood of such nefarious designs. All the officers, therefore, as reminded from time to time, shall strictly follow the Procedure laid down herein for allowing downloading of statutory Forms to the following class(es) of dealers

1) Those who have been granted Provisional Registration Certificate only.

2) Registered dealers who have been granted (Final) Registration Certificate after 01.04.2015.

3) All the above class(es) of dealers who have reflected High GTO and NIL/ Negligible tax.

4) Dealers whose details in Form DVAT-04 (Parts A, B, C & D) are not filled properly including Unique Identification (AADHAAR) No.

5) Already registered dealers who have not provided the Bank Account details or have punched in fictitious digits (0000 or NIL etc.) in the column of Bank Accounts.

6) Dealers, who have made frequent changes in DP-1 and / or whose credentials, prima-facie, appear questionable.

7) Those dealers who frequently resort to revise returns.

Dealers falling in all or any of the above class(es) shall be barred from automatically downloading the statutory form(s) by the Ward In charge concerned by blocking/ putting a check through the front end in the System.

The online permission for downloading the statutory form(s) may be granted by the Ward In charge concerned through the link available to them at the front end, to such blocked dealers who apply online and whose credentials are duly verified by the Ward Incharge/ officer concerned.

Further, upon receiving an SMS/ e-mail alerts by the VATOs regarding the statutory forms downloaded, in excess of Rs.10 Lakhs, by the above class(es) of dealers or the ones who are found to be involved in suspicious transactions, there should be a daily reporting concerning such transactions /dealers, to Zonal In charge concerned.

Furthermore, there must be an immediate blocking of the TIN of the dealer by the very next day, by VATO / Ward In charge, to be followed by a physical inspection of the firm by the VATI, as well as, an issue of notice u/s 59(2) of the DVAT Act, 2004 by the VATO concerned, directing the dealer to produce, within a period of 15 days, the requisite documents, to substantiate the transactions/ purchase, that related to the form(s) downloaded.

If the dealer fails to reply/ respond within the time stipulated, the process should be initiated for declaring the Statutory forms obsolete and invalid, invoking the relevant provisions of the Statute / law and a notice to the effect be duly issued/served on the dealer in the manner envisaged. in the law. The respective State authorities shall also be informed of the action taken.

If the dealer is not found functioning/ existing at the given address, a Show Cause Notice may be issued/served forthwith, in Form DVAT 10, thereby affording the dealer an opportunity of being heard. If no response is forthcoming or reply received is not to the satisfaction of the VATO, then Form DVAT 11 may be issued /served, cancelling the registration of the dealer as well as initiating the other possible actions towards recovery of any amount of tax, interest, penalty and other amounts due.

All the ACs/ VATOs/ AVATOs/ Ward In charges are hereby directed to check/ examine, before granting their approval to the applicant dealer, whether all the columns of a new registration application, i.e. Form DVAT 04 (parts A,B,C & D), are duly filled by the dealer and also, whether the scanned copies of all the requisite documents are attached/ uploaded along with the Registration application i.e Form DVAT 4.

The above guidelines/ procedures shall be followed, in addition to the existing notifications/ orders/ circulars on the matter, and non-compliance thereof shall be viewed seriously.

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

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

DVAT Circular dt 27 Jan 2016: Modification of DVAT Circular 30 of 2015-16

Earlier DVAT Deptt. had specified certain conditions for downloading the Central Statutory forms online, vide DVAT Notification dt. 8 Jan. 2016 and Circular dt. 27 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 Deptt to curb growing tendency of misuse of the facility of auto donwload facility of statutory forms under CST by unscrupulous dealers

DVAT Circular No. 30 of 2015-16 dt. 18 Nov. 2015

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.

DVAT Guidelines/ Conditions for Advance Issue of Statutory Forms

The DVAT guidelines/ conditions for advance issue of Statutory Forms, are as under:

Advance Issue of Statutory Forms (C Form) under DVAT

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