Vat return software maharashtra

Proin gravida nibh vel velit auctor aliquet. Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum, nec sagittis sem nibh id elit. Today we will discuss the frequently asked question on Service Tax Payments, who has to pay the service tax, Due…. Today we will discuss on Most awaiting tax Goods and service tax in India.

Why G. It is designed to simplify present indirect tax system by integrating the union excise duties,…. Now in this blog we will discuss on how to e-verify the income tax return, what are the option available….

By admin Business Registration February 18, Related Posts. GST Registration in Mumbai. How to reset service tax password Today we discuss on the How to reset service tax password, if a user after getting service-tax-registrationlost the user id and…. For example, a Seller may treat a project as a series of divisible, separate contracts for the supply of equipment, whereas a Buyer might consider the project as a lump-sum contract and start deducting MVAT TDS from payments made to the Seller.

In this scenario a dispute is likely, since the Seller does not consider itself liable to pay VAT under the Works contract and chooses to pay tax at the full rate of the value of supply. To avoid such conflicts, the Contractor and the Buyer should arrive at a common agreement at the start of the project, regarding the MVAT tax treatment of all project transactions.

Alternatively, the Contractor can seek exemption from TDS provisions by making an application in Form If the tax treatment as a divisible contract is accepted, and if the Contractor obtains a certificate, then the Buyer will not deduct TDS and avoid further conflicts.

Any Employer who fails to deduct tax or pay MVAT to the government will be held liable and will be penalized through interest payments. It is important for a Contractor to claim credit based on advice from its Contractee, to ensure that tax is not paid twice for the same invoice. If a Contractor feels that its contract does not warrant TDS, it should obtain certificates for no deduction of tax in accordance with provisions of Section 31 1 b ii. For medium and large companies with high volumes of transactions, identifying contracts covered under TDS provisions may become a daunting, onerous task.

That is where tax automation software can assist Contractors and Contractees. By identifying contracts for TDS compliance at the purchase order in case of Employers or at order acceptance in the case of Contractors can help to avoid downstream conflicts, especially if both parties are maintaining complete tracking of invoice, payment and receipt transactions identifiers throughout the contract lifecycle.

Under the new system of Maharashtra VAT returns, TDS credit is not available to a contractor unless his employer post those corresponding TDS entries in the return utility database of state government. Automation for this functionality can be very useful for employers as well as contractors.

In GST, compliance requirements will be applicable across all of India, rather than just Maharashtra; this change will drive an extensive benefit from automation with respect to monitoring, calculation and filing. To summarize, TDS on Works Contracts may seem like a minor issue for organizations but its timely identification, accurate calculation and timely compliance are absolutely essential to avoid interest and penalties imposed for noncompliance.

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Chat with Sales. They will be required to show TIN and the names of contractors and also show the amount of TDS effected from each of the contractors. All dealers will be required to file annexures of their latest bank accounts and also their closed bank accounts with the last return of the financial year.

Billing Software that can be used by dealers for generating invoices will be provided for free download. If this billing software is used, sellers will have no need to submit sales annexures.

All return-related compliance will be taken care at the stage of transaction processing itself. This seems to be the best feature of the proposed system.

Though ITC will be calculated on a gross level by the departmental interface, net ITC after consideration of retention and negative list items will be calculated by the interface only on the basis of relevant information to be entered by the dealer separately. This generates a compliance burden on a dealer to calculate correctly items on which either full set-off is not available under rule 53 of MVAT Rules or there is a denial of set off under rule Merits of New System.

Demerits to dealers The system is more beneficial to the sales tax department than the dealers, as extensive exercises and cross-checks will be required to be performed by the dealers to receive benefits like set-off on the basis of tax invoices.

The department will be more relaxed as the burden shifts to dealers who need to make sure that the taxes are paid by their vendors regularly. As the new process is transaction-based, dealers will have to make every effort to ensure accuracy in data entry procedures. Extensive measures to improve data flow and provide proper training to data entry operators will be required to ensure that transactions are correctly recorded at the point of inception, in order to avoid future implications.

Some suggested steps can be followed while programming the software to adapt more easily to the new process:. Get direct help with your questions about GST software. I'm interested in learning more about Avalara solutions. Chat with Sales. I am an Avalara customer and want to chat about my products and services. Chat with Support. Global and Cross Border. Brazil Tax Compliance Brazil. Cross-border Sales Tax Compliance Item classification, custom duty and import. GST 2. Ready for GST 2.

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Become a Partner. Become a Partner Being an Avalara Partner gives you an opportunity to deepen relationships with your customers Sign up. Old Filing Process. However, this system had major problems: Unattended Mismatches There was no check for parity between annexures and returns, a problem that resulted in mismatches.

No real-time analysis Departmental action based on cross-verification of sales and purchase annexures was taken after the filing of Form audit reports for the relevant year. Refunds under bank guarantee affected Mismatches primarily affect the dealers who claim quarterly refunds against bank guarantees, as a major portion of ITC becomes disallowed when the supplier of the dealer claiming a refund files quarterly or half -yearly returns.

Need to obtain revised mismatch report after revised returns Under the current system, even if a defaulting supplier admits and corrects his annexure, additional set-off credit is not made available to the purchaser automatically. Issue of declaration forms The department had launched an online application for CST forms.