Instruction sheet for submitting CDA Compliance Form

This instruction sheet covers:

1. General Introduction
2. CDA Compliance Web-Form
3. Calculation of Interest u/s. 30(2)
4. Making payments of CDA liabilities
5. CDA Acknowledgements
6. Description of CDA Parameters
7. Division-wise Help-Desks

To avoid common errors please refer points with ** in this instruction sheet

1. General Introduction

(Refer Trade Circular 14 T 2014 dated 06-08-2014)

1. Computerized Desk Audit (CDA)is a utility developed by department to analyse the electronic information uploaded by dealers through various e-services.� The analysis is resulting in identification of various issues in which additional taxes are found to be payable by dealers.� A list of such dealers covered under CDA is made available on Mahavat web-site in �What�s New� section.�

2. The audit issues in CDA complied on web-site will result in closure of these issues and you or your representative is not required to attend any proceeding in relation to these issues.

3. You are at liberty to disagree with the CDA findings. However, all the cases where parameters have not been accepted will be taken up for scrutiny, by way of assessment, for the confirmation of facts through the personal hearing in which case the penalty under section 29(3), in addition to interests, shall also be payable. The partial acceptance against a particular parameter will not be accepted.

4. The facility of CDA Compliance will not be available to LTU dealers or PSI cases or refund claiming dealers or the cases pending for investigation or the cases specifically selected for comprehensive audits or assessments for the year.� The cases selected for assessments pertaining to period 2012-13 are displayed on the MAHAVAT web-site.

5. If you are covered under CDA, you can access findings of CDA in Form 604(A)by using your log-in credentials on Mahavat web-site.If you are not covered under CDA Category then the message �No Audit Report is available for this TIN Number� will be populated.

6. After log in, click on the link �Computerized Desk Audit�to access findings of CDA and CDA Compliance Web Form. On clicking the link, the page with following three links will be opened:-

7. First click on the link �Download Computerized Desk audit Report�. The link will open to show youthe year-wise Form 604A,issued to you by the Maharashtra Sales Tax Department, along with annexures showing parameter-wise details and your additional tax liability.To download the 604A for a year, select the radio button in-front of the financial year and click on the button �Download CDA Findings�

**(PLEASE NOTE:Your CDA Compliance Web Formwill be available to you only if you have downloaded the form 604a as described above.� i.e., it is mandatory to download the form 604A to open CDA Compliance Web Form.)

8. It is always recommended to save this findings ofCDAin Form 604A for your future reference.

9. Now Exit and click on second link i.e.�CDA Compliance Web Form�.

10. On clicking the �CDA Compliance Web Form� link, a page with year wise Compliance Web form (CWF) will be displayed. To open CDA Compliance Web form for a year, select the radio button in-front of the financial year and click on the button �CDA Compliance Web form�

2. Compliance Web-Form (CWF)

1. On clicking the button �CDA Compliance Web form� as described above a new page with following 4 tables will open

a) �CDA TAX LIABILITY SUMMARY� table
b) �ADDITIONAL INFORMATION FOR INTEREST CALCULATIONS� table
c) �CHALLAN SUMMARY� table
d) �REVISED RETURN u/s 20 (4) (C)� table

�CDA TAX LIABILITY SUMMARY� table:

i. �CDA TAX LIABILITY SUMMARY�table of the CDA Compliance form displays the parameters and the tax liability under each parameter. �(Short description/meaning of these parameter is provided separately in this Instruction sheet).

ii. After going through party-wise aggregated transactions in Annexure to Form 604A, you can decide whether to accept or not the additional tax liability. If you agree with the additional tax liability pertaining to any of the parameter, select �YES� from the drop-down in front of that parameter in �CDA TAX LIABILITY SUMMARY� table. Please note that at present you have only two options i.e. to either accept the parameter fully or reject it.

iii. You have to accept or reject (i.e. to select either YES or NO) all the parameters, where additional Tax liability is shown in the CDA Compliance Web Form. The CDA Compliance Web Form will neither be saved nor be submitted if any of the parameter remains unselected.

iv. If any parameter value is zero (0), then select �NO� from the drop-down.

v. As you go on accepting the parameters (i.e. as you select YES), the form will automatically calculate the Tax liability acceptable to you in the box �TOTAL TAX LIABILITY�.

vi. Save the changes made by you by clicking �Save� button available at the end of the page.

�ADDITIONAL INFORMATION FOR INTEREST CALCULATIONS� table:

As shown in the image below, the table have following six fields:

� Total Admitted Tax Liability Payable:
– This field shows Tax Liability accepted by you under MVAT and CST Act separately.
� Tax on which Interest u/s. 30(4) is not applicable on account of Taxes paid before intimation of CDA findings:
– If you have made any payment before intimation of CDA findings and the payment made earlier is related to any of the Accepted Parameter, then put only the Tax amount (not the interest)involved in the already paid amount in this box under respective act.
� CST Declaration Tax if included in Asked to pay parameters:
– If ASK TO PAY PARAMETER is acceptable to you and it has any quantum of tax liability due to not received CST Declarations, you should enter that tax amount in this box under respective act.
� Interest u/s. 30(2) included in Asked to Pay (due to Additional tax pointed out by Auditor) – IF ASKED TO PAY PARAMETER IS ACCEPTED:
– If ASK TO PAY PARAMETER is acceptable to you and it has any quantum of interest u/s 30(2)due to Additional tax pointed out by Auditor, you should enter that interest amount in this box under respective act.
� Interest u/s. 30(2) included in Asked to Pay (due to less interest paid along with returns) – IF ASKED TO PAY PARAMETER IS ACCEPTED
– If ASK TO PAY PARAMETER is acceptable to you and it has any quantum of interest u/s 30(2) not due to Additional tax but due to less interest paid along with returns, you should enter that interest amount in this box under respective act.
� Interest u/s. 30(4) included in Asked to Pay – IF ASKED TO PAY PARAMETER IS ACCEPTED
– If ASK TO PAY PARAMETER is acceptable to you and it has any quantum of interest u/s 30(4), you should enter that interest amount in this box under respective act.

**(PLEASE NOTE:1. The sr. no. 2 in above table is related to only the �Tax quantum� available in the payments made before intimation of CDA findings to you. 2. Whereas, the sr. no. 3 to 6 is only applicable to you if Ask to Pay parameter is acceptable to you and the amounts at sr. no. 3 to 6 should be equal &to be filled from your form e-704 only.)

**(PLEASE NOTE:For amounts please enter positive round figures only. Figures like 100.00 are not accepted)

�CHALLAN SUMMARY� table:

This Challan Summary table shows the consolidation of all challans paid by you under MVAT and CST Act against CDA compliance.

�REVISED RETURN u/s 20 (4) (C)� table:

The details of revised returns should be provided in this table. Please take due care while entering Date of revised return and Return Transaction ID.

In case, you have already made all payments before CDA intimation and also revised the return well before CDA intimation, (e.g. all Ask to Pay amount is paid by you just after your e-704 audit and at the same time you have also revised your annual return u/s. 20(4)(b) ) then you are allowed to enter Date of revised return and Return Transaction ID of that return also, although the name of table is �REVISED RETURN u/s 20 (4) (C)� table.

** (PLEASE NOTE:1. If you are required to revise the returns, then please revise your returns only when the CWF is error free for tax and interest and shows only� error of revised returns. 2. Revised return u/s. 20(4)(c) should be Annual Returncovering all turnovers for the year.)

2.� �Save� Button: – This button is available at the bottom of CDA Compliance Web Form. This button can be used to save the completely or partially filled CDA Compliance Web Form multiple times before submitting. Because once the CDA Compliance Web Form is submitted by using �Submit� button, then it is not possible to correct any mistake. So, it is recommended to first save the CDA Compliance Web Form, make sure that all the details entered by you are correct and complete. You can edit the saved details on web-form any time within the period of 30 days before submission of final compliance.�

3. �Submit� Button:- This button is available at the bottom of CDA Compliance Web Form and it is provided to submit your final compliance.

**(PLEASE NOTE: The compliance can be submitted any time within a stipulated period.� Once the submission is made no further changes are possible in the web-form compliance details.)

3. Calculation of Interest u/s. 30(2)

1. Once you select YES/NO and save the CWF, go for calculating interest as per provisions of section 30(2) of MVAT ACT using the �Calculate Interest� button available at the end of the CWF page.

2. On clicking the �Calculate Interest� button (as described above) new page with following details will open. Click on the �Add� button to calculate periodicity-wise interest.

3. On clicking the �Add� button (as described above) new page with following details will open.

In the above image,-
A. For calculating interest on any payment made AFTER 01-04-2015 andalong with annual revised return): – �Periodicity� must be selected as Annual.� �Period From� should be the starting date of the financial year (i.e. 01-04-2013). �Date of Payment� means the actual date on which the payment is made. �Tax Paid� means total tax paid in CDA for the return period.
B. In other cases: – �Periodicity� means your Return periodicity for the selected financial year, �Period From� means the starting date of the periodicity for which interest is to be calculated. �Date of Payment� means the actual date on which the payment is made. �Tax Paid� means total tax paid in CDA for the return period.
**(If you have made all CDA payments for the complete year by way of single challan, then in that case, for all return periods, your �Date of Payment�will be same.)
4. To repeat once again,(point B above) the interest u/s. 30(2) is payable for the return period in which such tax liability arises and the interest will accordingly be required to be calculated from the due date of return till the date of payment.

4. Making payments of CDA liabilities

1. Make e-payment of the accepted Tax liability along with interest u/s 30(2) and 30(4) in a single challan (use separate challans for MVAT ACT and CST ACT) and file revised return u/s 20 (4)(C).

**(PLEASE NOTE: 1. Though you have calculated interest as per periodicity, please make all payments of CDA in one single challan for an Act. i.e. make all VAT related CDA payment in a single VAT challan and a separate� single CST challan �for all CST related CDA payments.)

2. If payment corresponding to a parameter(s) is(/are) already made before intimation of CDA findings then the said chalan(s) details are also required to be entered in the separate chalan.

3. To provide the payment details, click �Payment� button available at the end of the page.

Then new page with following table will open,

Now click on the �Add� button. It will open Challan Payment Details 2012-2013 table as shown below. In this table, you have to provide all relevant details of payments made by you towards the accepted CDA parameters. Please take due care while entering Date of payment and CINin this table.

4.What is �Annual Revised Return� in �PAYMENT CHALLANS� table?

If the payment is made after 01-04-2015 and along with Annual revised Return, then select the option as �YES� from the dropdown menu otherwise select �NO�.

5. What is�Tax Paid (towards CDA compliance)� and �Total Amount Paid (towards CDA compliance)� in �PAYMENT CHALLANS� table?

Scenario:Suppose, accepted tax liability as per CDA is Rs. 1,000/- , interest calculated using �Calculate Interest� button is u/s. 30(2) is Rs. 100/- and interest u/s. 30(4) is Rs. 250/-. In addition to this, if you make any other payment not related to CDA parameter in same challan, the details of which are as tax Rs. 500/-, interest u/s. 30(2) is Rs. 50/- and interest u/s. 30(4) is Rs. 125/-. Then entries in �PAYMENT CHALLANS� table will be as follow:-

i.e. in this case, you have made total payment of Rs. 2025/- out of which Rs. 1350/- is related to the accepted tax liability of CDA (Tax accepted in CDA + interest u/s. 30(2) & 30(4) for accepted Tax in CDA).

**(PLEASE ENTER POSITIVE ROUND FIGURES ONLY. FIGURES LIKE 100.00 IS NOT ACCEPTED)

5. To add multiple challans repeat above process. You can provide details of multiple challans.

5. CDA Acknowledgements

1. Once you submit the Compliance Web Form, you can see the acknowledgements of the submitted CDA by clicking on the related buttons available at the bottom of CDA Compliance Web Form.

6. Description of CDA Parameters

Parameter 1: Tax Credit from non-genuine suppliers

This parameter shows your purchases from the non-genuine dealers declared by Maharashtra Sales Tax Department. So, any Tax credit for the purchases from these non-genuine dealers is not allowable.

Parameter 2: Tax Credit From Non-existing TINs:

This parameter shows your purchases from those TIN numbers which are not issued by Maharashtra Sales Tax Department. So, any Tax credit for the purchases from these TINs is not allowable.

Parameter 3: Tax Credit From RC Cancelled Suppliers:

This parameter shows your purchases from those TIN numbers which are not active during 2011-2012. So, any Tax credit for the purchases from these TINs is also not allowable.

Parameter 4: Tax Credit From complete (Return) Non-Filers:

This parameter shows your purchases from those TIN holders who have not filed any return during the complete financial year. As your suppliers have not disclosed any transaction in the returns and have not discharged tax liability, Tax credit claim for the purchases from these Return Non-filers is not allowable to you.

Parameter 5: Wrong ITC from Composition dealers filing only Form 232:

This parameter shows your purchases from those TIN holders who have opted for Composition scheme and are filling their returns in form 232 only. As per the ACT, the Composition dealers cannot collect tax separately in their Invoice. So, in absence of Tax Invoice,tax credit for the purchases from such TIN holders is also not allowable to you.

Parameter 6: Wrong ITC From suppliers not showing taxable sales in return:

This parameter shows your purchases from those TIN holders who have not shown any taxable salesin returns. As your suppliers are not showing any taxable sales, you cannot claim ITC on the purchases from such suppliers.

Parameter 7: Excess credits in J2 where supplier has filed full J1 but shown no sale to J2 filer:

This parameter shows your purchases from those TIN holders who have filed complete Annexure J1 and are not showing any sale to you in their Annexure J1. As your supplier are not showing any sale to you, you cannot claim ITC on these purchases.

Parameter 8: Excess credits in J2 where supplier has filed full J1 but shown less sale to J2 filer:

This parameter shows your purchases from those TIN holders who have filed complete Annexure J1 and are showing less sales to you in their Annexure J1, hence you are entitled to claim the credits on purchases only up-to the extent shown by your supplier.

Parameter 9: Asked to pay additional tax- MVAT:

This is the amount, you have been asked to pay under MVAT Act, by your Auditorafter VAT Audit for the financial year. This amount is shown in your form e-704 as payable by you.

Parameter 10: Asked to pay additional tax � CST:

This is the amount, you have been asked to pay under CST Act, by your Auditor after VAT Audit for the financial year. This amount is shown in your form e-704 as payable by you.

Parameter 11: Excess ITC in J2 where Gross purchases matches with Gross Sales shown by seller in J1:

This parameter shows that your gross purchases from asupplieris exactly matching with the gross sale shown by the supplier to you, but he has shown, in his Annexure J1, that he has collected lesser tax from you.So, you are entitled to claim the credits only up-to the extent shown by your supplier.