Rajasthan Circular - Assessment

Circular No. 04/2016-17 F.16 (48)/Tax/CCT/11-12/360 Dated 4th May, 2016 While finalizing the assessments, the assessing authorities commit some common errors and the same were identified by the Department and a detail circular in this regard ; was issued on 21.04.2014 (Circular No.F.16 (48) Tax / CCT / 11-12 Pt.-II / 1899). Further certain guidelines were also issued regarding scrutiny of the returns, vide Circular No. F.120 (Insp.(Inst.) / Tax / CCT / 2010 / 1959 dated 29.04.2014. However, it has been observed that some of the issues as highlighted in these circulars are not strictly adhered to, by the assessing authorities. It is, therefore, reiterated that the concerned officers should keep in mind these issues so that audit objections are not raised by the AG audit teams and no revenue loss is caused to the State exchequer. The office of the Accountant General, Rajasthan has pointed out some common mistakes committed while finalizing the assessment orders. These issues and suggested course of action, are enumerated below:- 1. Correct rate of tax under CST Act: In the return format for CST transactions, a separate column has been provided to mention name of the commodity. It has been observed that while making assessment, some Assessing Authorities don't pay proper attention that what commodity has been mentioned in return and what rate of tax is applicable on that commodity under CST Act, with the support of 'C' Form (from 0.25% to 2%). The declaration forms furnished by the dealers to claim exemption from tax under the provisions of sub-section (2) section 6 of CST Act on the subsequent sale transactions should be examined carefully at the time of assessment. 2. Assessment orders / rectification orders should be self explanatory: It has been observed that some of the assessment orders passed by the Assessing Authorities are not self explanatory. It is therefore, enjoined upon all the Assessing Authorities that order should be self explanatory, so that the dealer may understand that they have been assessed properly and in case of litigation such orders could be defended by the contents of the order itself. 3. Burden of proof etc., in case of transfer of goods claimed otherwise than by way of sale: At present, dealers having turnover more than Rs.25 lacs in preceding years have to generate Form VAT-49A electronically. The details of Form VAT-49A, so generated, are sent simultaneously in the dealer profile by system itself. Under provisions of the sub-section (2) of section 6A of the CST Act, 1956 dealer has to submit Form 'F' in support of goods dispatched otherwise than by way of sale, in the course of inter-State trade and commerce. In addition to Form 'F', dealer has to furnish evidence of dispatch of such goods. In compliance of the statutory provisions laid down in section 6A, all the Assessing Authorities while making assessment, should examine , the details of dispatch of goods mentioned in Form VAT-49A as available in dealer profile. 4. Submission of Form 'C and Form 'F': Sub-rule (1) of rule 12 of the CST (Registration & Turnover) Rules, 1957 prescribes that a single declaration may cover all transactions which take place in a quarter of a financial year, between the same two dealers. It shall be necessary to furnish a separate declaration in respect of goods delivered in each quarter of a financial year. Accordingly, a 'C' Form shall contain the details for a particular quarter only. So far as the Form 'F' is concerned the Rule 12(5) provides that a single declaration may cover transfer of goods during a period of one calendar month. All Assessing Authorities should ensure the strict compliance of these unambiguous provisions and while making assessment, if any discrepancy is found in respect of genuineness of declaration forms such forms shall be cross verified in detail. (T. Ravikanth) Commissioner Commercial Taxes, Rajasthan, Jaipur