PROCESS OF ONLINE REGISTRATION

Circular No: 2013-14/403-409

Dated: 10.7.2013

The Department had introduced the facility of online registration under DVAT/CST Act with effect from 01/04/2013. The process involves pre-verification from VATI by visiting the business premises and obtaining signed copy of registration application with all relevant documents before granting the registration.

However, it has been reported that the Ward officers are finding it difficult to complete the pre-inspection exercise within the permissible time limit of 15 days under e-SLA wherever the number of applications is high. The delay in granting registration is also causing inconvenience to dealers.

With a view to ensure time bound disposal of registration cases, it has now been decided that the pre-registration verification by VATI be stopped. The Ward VATO may grant registration based on facts declared by the dealer in the registration application and documents uploaded with the application and also submitting a hard copy of the same to concerned VATO. The physical verification may be conducted by VATI post registration within 3 months of grant of registration. The process flow will be as under:

1. Dealer seeking registration would submit some basic details such as name, constitution, PAN and contact details online.

2.   PAN is verified from NSDL.

3. On successful PAN verification, dealer will be provided login id and password through e-mail.

4.   The dealer would login, fills up registration forms and upload supporting documents such as address,identification proof, etc.

5.   Dealer to take a print out of the application filled online and submit the signed copy of the same along with relevant documents such as constitution of business, partnership agreement etc in the concerned ward.

6.  A computerised receipt will be issued by the ward to the dealer. The receipt should contain a computer generated date on which application (hard copy) with documents is received.

7. Generation of receipt would push the application into the login of concerned Ward in charge. Counting of 15 days begins with the generation of this receipt.

8. The Ward VATO would approve/reject/issue deficiency memo based on the facts of the case.

9.   The above action is required to be completed within 15 days as per DVAT Act and SLA.

10. Registration certificate will be sent to the dealer at his indicated Principal Place of Business through registered speed post.

11. Ward VATO would assign the registration application to VATI for physical inspection. This verification would be completed within 3 months of issue of the Registration certificate to the dealer.

12. Ward VATI would enter verification report in the system through his/her login Id and password within a week of verification.

13. The verification report would be available in Ward VATOs login.

14. The Ward VATO will initiate action on adverse report, if any, submitted by ward VATI within 3 days.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

FILING OF AUDIT REPORT IN FORM - AR 1

Circular No –VAT Audit/HQ/2013-14/2601-2668

Dated – 09/07/2013

This is in continuation of circular No.VAT Audit/HQ/2013-14/2406-2413 dated 02-07-2013 vide which it was clarified that the audit of business affairs of the dealers having GTO more than Rs.10 Crore for the year 2012-13 may be conducted after 15-11-2013 i.e. after submission of audit report for the year 2012-13 in Form AR-1.

Now in this context, it is further clarified that if the details/informations furnished by auditor in Form AR-1 in respect to the dealer are found satisfactory as regards the 2012-13 parameters, which led to dealer being picked up for audit, and the dealer accordingly deposits the tax, then the audit of the dealer for the period 2012-13 may not be pursued further.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

CIRCULAR ON SATURDAY IS WORKING DAY

Circular No – 3559-61

Dated – 09/07/2013

Department of Trade & Taxes will remain open on every Saturday as per official timing i.e 9.30 a.m. to 6.00 p.m. for day to day official work. The data entry operators are also accordingly directed to attend the office/work.

It has been decided that henceforth and till further order, all Saturday will be full working days and not holidays.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

AMENDMENT IN CENTRAL SALES TAX RULE 2005

Notification No – 2013-14/499

Dated – 04/07/2013

1.   These rules are called Central Sales Tax Rule 2013.

2.   Amendment of rule 3 – in Central Sales Tax Rule 2005 in rule 3 –

(i)  For sub-rule (2), the following shall be substituted, namely:-

“(2) the commissioner or the person authorized by him shall issue to the dealer a receipt in form DVAT-56 as prescribed in DVAT Rules, 2005 acknowledging the receipt of the return accompanied by Part-‘C’ of the receipted treasury challan. ”

(ii)  Form 1 under Central Sales Tax Rule 2005 shall be substituted.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

                                                                            

REVISED POSITION LIMITS FOR EXCHANGE TRADED CURRENCY DERIVATIVES

Circular No. - CIR/MRD/DP/ 22 /2013

Dated – 08/07/2013

1.   This is in partial modification of SEBI Circular No. SEBI/DNPD/Cir-38/2008 dated August 6, 2008, SEBI/DNPD/Cir-45/2009 dated March 24, 2009, CIR/DNPD/5/2010 dated July 30, 2010 and CIR/DNPD/2/2012 dated May 23, 2012 which, inter-alia, specified the position limits applicable for Client and Trading Member for Exchange Traded Currency Derivatives.

2.   In consultation with RBI and in view of the recent turbulent phase of extreme volatility in USD-INR exchange rate, it has been decided to curtail position limits and increase margin requirements for Currency Derivatives as follows:

a.   Margins: Initial and extreme loss margins shall be increased by 100% of the present rates for USD-INR contracts in Currency Derivatives.

b.   Client level position limits: The gross open position of a client across all contracts shall not exceed 6% of the total open interest or 10 million USD, whichever is lower.

c.   Non-bank Trading Member position limits: The gross open position of a Trading Member, who is not a bank, across all contracts shall not exceed 15% of the total open interest or 50 million USD whichever is lower.

3.   Stock Exchanges are directed to:

a.   take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant byelaws, rules and regulations;

b.   implement provisions of this circular with effect from July 11, 2013;

c. bring the provisions of this circular to the notice of the trading members/clearing members and also disseminate the same on its website.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

ARBITRATION MECHANISM IN STOCK EXCHANGES

Circular No. - CIR/MRD/ICC/21/2013
Dated- 05/07/2013

1.   Reference may be made to circulars no. CIR/MRD/DSA/24/2010 dated August 31,2010, CIR/MRD/SA/03/2012 dated January 20, 2012 and CIR/MIRSD/2/2012 dated February 15, 2012 regarding investor service centres providing inter alia arbitration facility (arbitration as well as appellate arbitration). Presently, these facilities are being provided at 8 centres viz. Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Kanpur and Indore.

2.   With a view to extend these facilities, it has been decided to increase the number of investor service centres providing inter alia arbitration facility (arbitration as well as appellate arbitration). Increasing the number of centres shall reduce the travelling and other incidental costs to investors in case they choose to avail these facilities. The following is decided:

a.   Stock Exchanges with nation-wide terminals shall set up investor service centres at Bangalore, Pune, Jaipur, Gaziabad, Lucknow, Gurgaon, Patna and Vadodara. These centres shall provide investor grievances redressal mechanism and arbitration facility (arbitration as well as appellate arbitration).

b.   The investor service centres at Bangalore, Pune, Jaipur and Gaziabad shall be established before December 31, 2013.

c.   The investor service centres at Lucknow, Gurgaon, Patna and Vadodara shall be made functional by June 30, 2014.

3.   The stock exchanges are advised to:-

a. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately;

b.   bring the provisions of this circular to the notice of the members of the stock exchange and also to disseminate the same through their website; and

c.   communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Reports to SEBI.

4.  SEBI inspection of stock exchange shall cover implementation of this circular.

5.   This Circular is issued to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and shall come into effect immediately.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

NBFC Update

PAYMENT OF INTEREST ON OVERDUE PUBLIC DEPOSITS

Dated: 4^th July 2013

Non Banking Financial Companies (NBFC) are at times required to freeze the term deposits of customer based on the orders of the enforcement authorities or the deposit receipts are seized by the enforcement authorities.  As doubts have been raised on the payment of interest on such deposit which have either been seized by the government authorities, and/or have been frozen till further clearance is received by the concerned government authorities, the NBFCs are advised to follow the procedure mentioned below:

1. A request letter may be obtained from the customer on maturity. While obtaining the request letter from the depositor for renewal, NBFCs should also advise him to indicate the term for which the deposit is to be renewed. In case the depositor does not exercise his option of choosing the term for renewal, NBFCs may renew the same for a term equal to the original term.
2. No new receipt is required to be issued. However, suitable note may be made regarding renewal in the deposit ledger
3. Renewal of deposit may be advised by registered letter / speed post / courier service to the concerned Government department under advice to the depositor. In the advice to the depositor, the rate of interest at which the deposit is renewed should also be mentioned.
4. If overdue period does not exceed 14 days on the date of receipt of the request letter, renewal may be done from the date of maturity. If it exceeds 14 days, NBFCs may pay interest for the overdue period as per the policy adopted by them, and keep it in a separate interest free sub-account which should be released when the original fixed deposit is released.

However the final repayment of the principal and the interest so accrued should be done only after the clearance regarding the same is obtained by the NBFCs from the respective Government agencies.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in