KARNATA VAT ACT,2003
1
3/18/2016
• Implemented in Karnataka State with effect from 01.4.2005
alongwith many other states in the country
2
• Central Sales Tax Act 1956 And Karnataka Tax On Entry Of Goods
Act 1979 continued to be implemented .
3
• VAT regime has replaced regime of Karnataka Sales Tax Act,1957
which was in force upto 31.3.2005
3/18/2016
1
• Registered dealers were required to visit offices which were
sometimes located at a distance of about 200 kms from the
place of business of dealer
2
• Tax payers were prompted to visit offices for:• (A) filing returns with tax / without tax
• (B) produce books of account for purpose of
• assessment
• (C) collect statutory forms under the CST Act
ORDEAL OF VISITS BY DEALERS TO OFFICES
• (D) for making payments
1
2
3/18/2016
• (E) difference in realisation amounts on deduction
•
of collection charges by banks in respect of
•
outstation cheques
• (F)
• (G)
• (I)
• (J)
to collect tax clearance certificate
to submit statutory forms received
to submit their grievances
to obtain copies of returns /
ORDEAL OF VISITS BY DEALERS TO OFFICES
1
• (K) to apply for new registration
• (L) to apply for copy of registration application
•
submitted by dealer himself
• (M) to apply for amendments in registration like
2
•
•
•
change of business place, additional place of
business, increase or decrease in number of
partners, modification of contact number
• (N) to apply for change in tax regime
3/18/2016
ORDEAL OF VISITS BY DEALERS TO OFFICES
1
• (O)
•
• (P)
• (Q)
• (R )
2
3/18/2016
to apply for insertion of commodities in the
CST registration for obtaining ‘C’ forms
to collect registration certificate
to furnish information regarding tax evaders
to reconcile missing payments/mis-classifications
• ( S) to collect transport permits called delivery
•
notes for transport of specified goods
PRE-VAT REGIME CONSTRAINTS
1
• More than 3lakh dealers throughout the state
• More than 450 assessing offices of various cadres engaged in
collecting returns, doing assessments issuing statutory forms,
delivery notes
• More than 900 number of officers including enforcement
officers and controlling officers
2
3/18/2016
• Enforcement officers used to visit assessing offices for
collecting information which would not ensure secrecy
PRE-VAT REGIME CONSTRAINTS
1
2
3/18/2016
• Controlling officers used to depend upon statistics furnished
by subordinate officers
• No mechanism to verify the accuracy
• No immediate / instant information regarding any
registered dealers to his status, turnovers declared in
returns, delivery notes obtained, statutory forms obtained
under CST Act, exemptions, export
PRE-VAT REGIME CONSTRAINTS
3/18/2016
1
• Sometimes, the information sought would take as
much as a fortnight and the information would not
be accurate and in the desired form
2
• No effective control over checkposts
• Orders passed by assessing authorities could not be
reviewed effectively
BENEFITS OF E-GOVERNANCE
1
• Computerisation from August 2005
• Full scale e-governance from 2010
• Benefits to dealers:• No need to visit offices for any work.
• Services available at their door step
2
• Benefits to officers:• Better monitoring of dealer activities
• Concentrate on more productive work
3/18/2016
BENEFITS OF E-GOVERNANCE
3/18/2016
1
• Benefits of on-line services were extended to dealers
from April 2008 in stages
2
• On-line returns enabled from April 2010 onwards
• On-line payments enabled for medium and large tax
payers from April 2010
BENEFITS OF E-GOVERNANCE
3/18/2016
1
• Only 125 VAT front offices established in place of
450 offices engaged in collecting returns
2
• Computerisation implemented from August 2005 in
stages
• In the beginning, only officers of department
benefited by the computerisation
E-GOVERNANCE
ADVANTAGES -DEALERS
3/18/2016
1
• On-line registration enabled from 2011
• Amendments to registration / changes in tax regime
could be applied on-line
2
• E-Sugam replaced manual delivery notes from 2010
• On-line statutory forms enabled from 2009 itself
E-GOVERNANCE
ADVANTAGES -DEALERS
• Online filing of returns –self acknowledgement
1
2
3/18/2016
• Nil tax/nil (0) turnover/excess input tax credit/
• e-payment cases –self acknowledged
• Several other dealer-friendly facilities extended to
registered dealers-downloading of certificates, raising of grievances, registering of complaints of
non-issue of bill etc
E-GOVERNANCE
ADVANTAGES -DEALERS
3/18/2016
1
• No need for the dealers to visit offices except for reassessment in selected cases assigned by dept
2
• No need to visit offices for latest updates on Act
and Rule, clarifications issued by department from
time to time.
E-GOVERNANCE
ADVANTAGES –OFFICERS OF DEPARTMENT
1INSTANT INFORMATION OF
ANY DEALER REGARDING
NEW REGISTRATION,
DERIGISTRATION, ETC
2
3/18/2016
• Instant information of any dealer regarding
registration, deregistration, etc
new
• On-line instant and accurate information on
returns, e-sugam used details, CST statutory forms
obtained, etc available to officers
E-GOVERNANCE
ADVANTAGES –OFFICERS OF DEPARTMENT
1INSTANT INFORMATION OF
ANY DEALER REGARDING
NEW REGISTRATION,
DERIGISTRATION, ETC
• Easy and effective monitoring of check posts
• Benefits of analysis of various information available
to officers
• Interface with dealers eliminated resulting in little
scope for complaints
2
• Improvement in image of the department
3/18/2016
Commercial Taxes Department, Karnataka provides all services through
electronic medium
1 •E-VARDAN – Online registration request & processing
2
•E-VARADI – Online submission of returns
3
•E-payment – Online payment of Taxes
4
•E-SUGAM – Online request and download of Form for Goods movement
5
•M-SUGAM – SMS based request and download of SUGAM for dealers
6
•E-CST forms – Online request and issue of the CST forms
7
• E-SUVEGA – Online request for Transit Pass for movement of goods through State
8
• E- No Due Certificate – Online request and issue of the No Due Certificate
9
• E-Grievance – Online grievance redressal
3/18/2016
Mobile Based Services
1
2
3
4
5
6
• M-Grahak– SMS based information/complaint by public on the dealer
• M-CST form Verify – SMS based verification of CST forms
• M-SUGAM – SMS based request and download of SUGAM for dealers
• M-payment Alert – SMS based alert to dealer on e-Payment receipt
• M-SUGAM Verify – SMS based verification of SUGAM by mobile Check Post Officers
• M-TIN Verify – SMS based verification of dealer details
• M-SUGAM alert – SMS based daily alert to dealer on SUGAM downloaded from him
73/18/2016
E-INITIATIVES
E-VARDAN-VAT
Registration and
Documentation Access
through Net (eRegistration)
5500 + online registration
are issued every month
E-VARADI- VAT Return And
Data through Internet(Electronic filing of return)
4.0 lakh dealers are
enabled for e-filing of
returns
All returns are accepted
only through e-mode
3/18/2016
•Dealer can file an application online
•Documents can be scanned and uploaded
•Registration fees can be paid through e-payment/ cash /cheque .
•After scrutiny/inspection of place of business, the security deposit
would be intimated
•TIN and certificate dispatched electronically
•Username and password would be sent by e-mail.
•Status of process of registration is intimated through SMS
•Dealer need not visit the office, time and human resources are
saved. Interface with tax officials reduced
•Return can be filed from anywhere and any time
•No paper returns are accepted
•Arithmetically correct and accurate returns only are accepted.
•Returns with e-payment are deemed acknowledged
•Returns with cheque/cash/dd would be acknowledged only after
submission of cheque/cash/dd.
•Non-filing of return and non-payment of tax result in blocking of
sugam
•Filing of annual statement downloaded from the system is
mandatory
E-INITIATIVES
E –Payment
Fourteen Public sector banks
are enabled.
The process of enabling some
private sector banks is on
Around 95% tax is being
collected through e-payment
E-SUGAM-Simple
Uploading of Goods Arrival
and Movements
80,000 sugams are being
down loaded every day
3/18/2016
•VAT, CST, Entry Tax, Profession Tax can be paid electronically
• For more than Rs. 25,000/pm, mandatory to pay through
e-payment .
•SBI, SBM, SBH, syndicate, Canara, Union Bank of India, Indian,
Corporation Bank,, Vijaya Bank, Central Bank of India,, Bank of
Maharashtra, Indian Overseas Bank, Bank of Baroda and IDBI
are enabled for e-payment .
•Shortly, entertainments tax, luxury tax and betting tax would
be enabled .
•No hassles of bouncing of cheques and waiting for realization
•Instant credit to the dealers’ account and no fear of missing
payments.
•As per the notification dated 23-12-2011 issued by the CCT, for 29
goods transported within the State and 22 goods brought from
outside the State downloading of sugam is mandatory.
•Alternative websites for e-sugam:
http://sugam.kar.nic.in/
,
http://sugam2.kar.nic.in/
in addition to main website
http://vat.kar.nic.in/
•Unlimited sugam can be downloaded (in cases where there is an
attempt to evade payment of tax or such similar reasons number
of sugam are restricted )
•Entering the vehicle number is not mandatory.
•Multiple username and password are
being provided for
E-Initiatives
E-SUGAM
Every day, No. of sugam
downloaded
would be intimated to the
dealer through SMS
M –SUGAM
(Mobile SUGAM)
3/18/2016
• downloading of e-sugam number after entering the details
of goods under transport is sufficient . Printed e-sugam is
not required .
•If the value of the goods under transport after sale is more
than Rs. 20,000/ then e-sugam is mandatory.
•For the goods brought from outside the State, irrespective of value
e-sugam is mandatory.
•For non filing of return within the prescribed time or for nonpayment of tax downloading of sugam would be blocked.
•The validity of sugam ranges from two to ten days depending on
the distance.
•For the dealers who do not have computer and internet, mobile sugam
facility is provided
•A dealer can register two mobile numbers in the CTD’s data base.
•Transportation details can be sent through SMS to the CTD’s server.
•After receipt of the SMS, CTD server would generate a sugam number
and sent back to the mobile handset.
•Number of sugam generated by the dealer would be intimated
through SMS.
•
E-Initiatives
•All dealers registered under the CST Act are enabled for obtaining
of e-CST forms.
•“C”, “E1” “E2”, “F” and “H” forms can be obtained electronically.
E-CST Forms
Forms issued every
month are as under
Type
C
E1
E2
F
H
Dealers
3/18/2016
No
12500
111000
125
1400
15
60
750
11600
200
4600
•Dealers to upload the request with all the details of interstate purchase/
receipts like invoice/delivery note number, date, commodity, value, Tin of
selling/dispatching dealers etc.
•LVO/VSO would verify 1) whether commodity is included in the RC 2)
Whether the purpose of use of commodity is as per the declaration given
in the RC 3) Whether value is declared in the return, then the forms would
be approved or rejected. Thereafter dealer can print the form
•Seal of the issuing authority is not required for the C forms to be issued to
the dealers of the AP, Gujarat, Kerala and TN
•For dealers of other States affixing seal of issuing authority is required
•Authenticity of CST forms issued online can be verified from the website
http://ctax.kar.nic.in in addition to the website www.tinxsys.com
•It is intended to generate the CST forms automatically by the computer
system after the dealer uploads the required details along with the return.
•By simplifying the procedure, the delay in approval of C form would be
reduced
E-Initiatives
E-SUVEGA- Simply Upload about
Vehicle and Go Across
No. of transit Pass issued per
day is 500 comprising 1300
consignments
E- No Due Certificate
E-Grievance
900 grievances are
redressed
• Transporter shall upload the details of goods and goods
vehicle transiting through the State before the goods vehicle
reaches the State border
•Entry checkpost officer after verification converts the
application into the transit pass.
•At the exit checkpost, the officer would once again verify
the and surrender the transit pass through the system
•Considerable time and manpower is saved.
•Clandestine transactions are curbed
• All registered dealers can obtain no due certificate electronically from CTD
• A registered dealer can submit the grievance after logging into the CTD website to
the various level of authorities.
• Concerned authorities are redressing the grievances
• The status of such grievance can be viewed by the dealer.
• Any citizen can furnish the information of non- issue of invoice through SMS
E-GRAHAK
Policing by the Citizens • CTD would contact the citizen for further information, if necessary
• Appropriate action is taken by the CTD and the status is updated on website
3/18/2016
• Any member of public can view any complaint and its latest status
E-Initiatives
M-CST form Verify
Issuing Authority, To
whom issued, TIN
Value etc. would be
displayed
M-TIN Verification
• To Verify the authenticity of online CST forms issued by the CTD through SMS:
• Enter the Text KCST <space>SERIES NUMBER<space> SERIL NUMBER and
• send to 9212357123 or to 92443355223
• For example Series Number is KA-CA and Serial Number is 234567 then text would
be KCST KA-CA 234567
• To Verify the TIN of a dealer in Karnataka through SMS:
• Enter the Text KTIN <space>TIN and send to 9212357123 or to 92443355223
Name and address of
• For example if the TIN 1s 29123456789 then the text would be
the dealer and the
details of registering
KTIN
authority is shown
29123456789
3/18/2016
Eleven services are brought under the Guarantee of Services to the Citizens ACT
Sl.No
3/18/2016
Services
Prescribed Time for
delivery of services
1
Issue of Registration under VAT
15 working days
2
Issue of No Due Certificate under VAT
- Do -
3
Issue of Registration under CST
- Do-
4
Issue of Registration under KTEG(Entry Tax)
- Do -
5
Issue of Permits under Entertainments Tax
- Do -
6
Issue of Registration under Luxury Tax
- Do -
7
Issue of Registration under Profession Tax
- Do -
8
Issue of declaration in C Form
9
Issue of Certificate in E1 and E2
- Do-
10
Issue of declaration in F forms
- Do -
11
Issue of Certificate in Form H
-Do-
10 working days
THANK
YOU
3/18/2016