VAT Cir - 17T of 2011 - Correction of mistakes made by the dealers or miscellaneous refunds of excess payment of taxes

TRADE CIRCULAR

 Date: 25/11/2011

No.VAT/Refund-Return/ACST(VAT-1)

Trade Circular No.17T of 2011

Sub.:-

Correction of mistakes made by the dealers or miscellaneous refunds of excess payment of taxes...

Background-

The payment of tax under MVAT Act, 2002 and CST Act, 1956 by way of e-payment has been made from March, 2011. it has been reported to this office by some of the dealers that they have made certain mistakes while making e-payment leading to incorrect / inaccurate / inappropriate tax payments. They have accordingly approached this office for rectification of the said mistakes. Considering the genuine difficulty faced by the dealers, it was decided to lay down a procedure for correction of mistake so committed as under-

1. Payment made against Wrong TIN, Wrong period & Wrong Act-

In case where the dealer has put wrong TIN or cancelled TIN instead of new TIN by mistake while making e-payment, then in such situation the application for correction regarding such mistake of payment under wrong TIN along with No Objection Certificate (draft enclosed) from the dealer whose TIN is mentioned while making e-payment (wherever applicable) shall be made to the Joint Commissioner (Return) or concerned Joint Commissioner (VAT-ADM) or nominated Dy. Commissioner in each division. A copy of said chalan is to be enclosed along with application. Bank statement may be accepted as an evidence.

The designated officer of the rank of Dy. Commissioner will give necessary opportunity of hearing to the applicant and after due verification do necessary corrections. Also the corrections made will be communicated to the concerned banks for correction in their data base.

2. Double payment or Excess Payment of taxes by dealer -

Where the dealer has wrongly made multiple payments of taxes while making e-payment, the dealer shall make applications for refund of excess amount paid to Refund Branch or designated officer by Joint Commissioner (Refund) or Concerned Joint Commissioner (VAT-ADM). Such application will be treated as miscellaneous refund applications and will be taken up for disposal on priority.

3. Excess payment made by the banks-

Some banks have made excess payment while doing e-payment through RTGS. In such cases, the applications are to be made to Refund Branch or designated officer by Joint Commissioner (Refund) or Concerned Joint Commissioner (VAT-ADM). The affidavit of dealer (in whose TIN the excess payment is credited) and banks involved by mentioning detailed facts is to be enclosed with application. Also the corrections made will be communicated to the concerned banks for correction in their data base.

These applications will be disposed off on priority.

{SANJAY BHATIA)

Commissioner of Sales Tax,

Maharashtra State, Mumbai