Karnataka Commercial tax department has issued Notification No. CCW/CR44/2013-14 dated 29-04-2014 with regard to furnishing of details in respect of purchases, sales, and stock transfer electronically
Electronic upload [E-Upass] implies submission of Purchases and Sales statements online at the department’s portal.
How it helps the trader community?
- It will minimize disputes related to input tax credit
- Facilitate electronic audit across the VAT chain (means no more manual audits? We have to wait and see)
- Faster processing of refunds.
Applicability: Applies to every dealer
- Whose Total turnover is Rs.50 Lakhs and above in the Financial Year ending March, 2014; Or
- Whose cumulative total turnover is Rs.50 Lakhs and above in the subsequent year
- [Note: Total turnover means Taxable turnover (Local Interstate)+ Tax on Taxable Turnover +exempted turnover+Export + H form turnover+stock transfer+ labour part in works contract]
What details to be entered online?
- Local purchases and local sales
- Inter-state purchases and inter state sales
- Import and export of goods
- Any purchase adjustments done towards return of goods or change in the value of goods, stock transfer and consignment sales.
- Whose entire turnover is exempted from tax (Schedule I of K VAT Act)
- Those who deal in both exempted and taxable goods; the details of exempted goods to be mentioned in lump-sum; rather than providing each transaction wise information.
- Three months (till 20th Sept, 2014) for those dealers whose turnover is between Rs.50 Lakhs and Rs.1 Crore; and
- For other dealers the education period ends on 20th July, 2014-06-23
- Notification CCW/CR 44 /2013-14 dated 29/04/2014 issued by Department of Commercial Taxes, Government of Karnataka
- Circular No.6/2014-15 dated 16/06/2014
FAQ’s on (eUPaSS) – E-Upload of Purchase and Sales Statement:
Whether the dealer dealing in 100% exempted goods under Interstate purchase or sales are exempted from uploading of purchase and sales statement.
As per CCT Circular No 6/14-15 dated 16.06.2014, the dealers who are dealing in 100% exempted purchase and sales under local transactions are excluded from submitting the purchase and sales statement. Whereas, if the dealer is dealing Interstate transactions of exempted goods, they have to upload the invoice details of purchase and sales statement.
I have affected the interstate purchases against E1/E2 form for which I am required to issue C form to the seller and obtain E1/E2 form from him. Under such circumstances, while uploading the interstate purchases, whether I have to select the purchases against C form or against E1/E2 form?
Basically such interstate purchases require C form to be issued to the seller, while claiming exemption on second and subsequent interstate sales, E1/E2 forms are required to be obtained from the selling dealer and produced before the VAT authorities. Therefore you may upload such purchases as against “C forms for E1 & E2 Purchases” under direct entry and use code “CE” for entering the data in XML converter for Upload XML file
Dealers who are carrying out the online business will have many invoices everyday to URD or RD, in such cases how to upload the invoice details?
Dealer effecting line sales to URD can upload Lump sum entry at the end of the month by showing total no of invoice in a month, Total Net value, Total tax charged, total other charges if any & Total amount. In case of sales effected to RD, they have to upload invoice wise TIN, Party Name, Invoice No, Invoice Date, Net Value, Tax charged, Other Charges if any & Amount.
Is it mandatory to upload the details of Sales & Purchases by the Works contractors under COT?
Yes. COT Dealers under works contracts should also upload details of Sales and Purchases.
Since mandatory upload of purchase and sales statement is currently not applicable to dealers below Rs. 50 lakh turnover, should I wait for 6 months to get refund?
For faster processing of refunds of any dealer, it is necessary that, every dealer shall upload the purchase and sales details. Even though the uploading is mandatory for dealers above Rs. 50 lakhs, any dealer can upload the purchase and sales statements.
I am software exporter and we don’t have any Bill of lading or Airway Bill No, then How to declare the software exports in eUPaSS?
In case of export of software, it is advised to enter the Softex number and date of certification by STPI in place of Bill of Lading / Airway bill and date of bill of lading.
My export Invoice date belongs to tax period but bill of lading date is of subsequent month, how and when to account?
If the Invoice date and Bill of lading / Air way bill dates are different and falling in different tax periods, then you can enter the export sales statement during the month, in which the bill of lading or Air way bill is received. However, the period of uploading of export details shall be the same as the period in which you have claimed the exemption on the export in the monthly return in Form VAT 100.
I frequently receive and send goods for job work, do I need to upload ‘job work in, and ‘job work out’ details?
Job work charges received does not form part of turnover under KVAT Act, 2003. So there is no need to enter such details. However, if such values are declared by the dealer in the return in Form VAT 100 and claimed either deduction/exemption or the job work charges are relating to the goods sent to outside the State under CST Act, 1956 when the goods are sent for job work outside the State, the dealer has to furnish the “F Form” for such values as per recent Supreme Court Decisions in case of (M/s Ambika Steels Ltd. V/s State of U.P. and others in Civil Appeal N0. 4970 of 2008, decided on 31st March 2009,) to claim as exemption. So it is advisable to enter the “job work charges” paid or received under CST Act, 1956 in Interstate Purchase or Sales Statement as case may be.
How do I upload debit note/credit note relating to URD sales/purchases in respect already uploaded lump sum entry?
If the sales or purchase under local URD transactions are entered by way of Lumpsum entry under direct entry, then there is no option of entering the URD debit note or credit note. If the sales or purchases of URD are uploaded invoice wise, then the dealer can raise the credit or debit note against such original invoice entered. The invoice wise of URD sales and purchases can be entered both by uploading XML file or Direct Entry. The TIN has to be 29000000000 for both URD local sale and purchase.
Is it necessary to match the details of purchase and sale entered into the web site for particular month with the values of purchases and sales declared in the monthly return in Form VAT-100 for that tax period?
Yes. The total taxable turnover and output tax payable under local sales as declared in Form VAT 100 shall match with the total value and tax of local sales uploaded after taking into account the credit/debit notes. Similarly the local purchase value and the tax thereon as declared in Form VAT 100 shall match with the local purchase value and tax uploaded on to the website. However, there may be a small difference in these two values if the value of the goods purchased from the URD is different than the value consumed or sold in that month. Thus the values of interstate purchases and sales and all other details as entered in the return shall match with the details uploaded.
How to enter the purchase details of an invoice containing date of previous month but accounted for during the current month?
Provision has been made to enter the details of purchase relating to previous six months, excluding the current tax period.
What is the relevance of the field “Purpose type” under Interstate purchase Statement?
If the dealer is registered under, CST Act, 1956, then they have to enter the “purpose type” for which the goods are intended to be used, The purposes specified as per the CST Act 1956 and CST ( Registrations and Turnover) Rules are :
2. Use in manufacturing/processing of goods for sale,
3.Used in mining,
4.Used in Generation/Distribution of Power,
5. Packing of goods for sale/resale,
6. In the telecommunication network,
7. For packing of any goods or for packing of any container or other materials.
What are the details that can be entered under Interstate purchase and Sales Statement?
The dealer can enter the details of purchase and sales for “Form C”, without form C”, E1 & E2 purchase/sales, Imports/High sea sales and Form H sales under this menu. Even, the dealer can enter the stock transfer from outside the state for issue of “Form F”. The dealer has to select the type of the transactions from the drop down menu for type of form to be issued.
What type of purchases and sales we need to enter?
The local and interstate purchases (including stock transfer receipts, and imports) and sales (dispatches) including export sales, shall be entered. Further, even the un-registered purchase and sale needs to be entered either in lumpsum values or invoice wise.
What If the goods are purchased from unregistered dealers or sold to consumers, Government departments etc., who do not have TIN?
If the goods are purchased from unregistered dealers or sold to consumers, Government departments etc., who do not have TIN, in such cases there is a necessity to enter the purchase or sale details using the TIN 29000000000. Such details may also be uploaded under direct entry as lumpsum values.
If a consolidated Tax Invoice is issued for goods taxable at different rates how should it be entered?
The entries of purchase and sale are based on invoices and hence irrespective of goods taxable at different rates, the entries shall be made on the basis of consolidated value of such invoices and tax collected therein.
Whether uploading of purchase and sales details is with reference to generation of statutory forms only? Does it have any impact on claiming input tax credit by the dealer on local purchases?
The input tax credit uploaded along with the details of purchases should match with input tax credit as declared inthe returns.
What are the consequences for not complying with the uploading of details of purchases and sales – E-Upass
In case of dealers who are required to upload the relevant details and who are not complying with the same, generation of declaration in relevant forms viz, C,F,H, ets will not be possible. The Department has also cautioned the dealers that there will strong measures to ensure compliance of the same which may include blocking of access to file the necessary monthly returns in Form VAT 100
What is the due date for uploading the details of purchase / sales
The details of purchase / sales must be uploaded within 20th of subsequent month.
What is the procedure to upload details of E1 sales?
In the current scenario, there is no facility to upload details of E1 sales.
Whether the details of purchase / sales should up uploaded prior to filing of returns?
There is no specific order prescribed for filing details of purchase / sales. Thus, details of purchase / sales may be uploaded prior to filing of returns.
Is it mandatory to upload the details of purchases and sales by all the registered dealers in karnataka
It is mandatory only for those dealers whose annual turnover exceeds Rs. 50 lakhs. It is also mandaatory for those dealers who intend to generate Form C.
- How to pass the entries in books of accounts when selling price of the goods is less than the purchase price?
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- QUIZ on Central Sales Tax (CST) and Karnataka Value Added Tax (K VAT)
- Major modifications in Karnataka commercial taxes with effect from 1st April 2015.
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