Issues in e-payment of Advance Tax under Kerala VAT

The Kerala Commercial Taxes department prides itself on being  in the forefront of computerisation initiative of VAT administration in the country. This has led to 100% e-filing of returns by all registered dealers. The enabling of e-payment of taxes from 01-09-2009 onwards (compulsoy e-filing of returns was introduced from 01-01-2009 onwards) has helped a great deal to simplify the tax remittance process (as well as tax collection process on department side).

This e-payment facility was extended to Advance Tax Payments. Advance tax is attracted by certain evasion prone commodities at the check post when they enter the State Border. This post is to describe the procedure and discuss some relevant aspects in this regard.

Access the website https://comtax.kerala.gov.in/web/iCOMITRAX/loginRPS.jsp. Login using the relevant TIN and password (An online demo facility at http://www.keralataxes.org/ with 1) Username 32010707362, password–TEST and 2) Username 32000044004, password – TEST, as per CIRCULAR No.32/07, does not seem to work now).

On the Home page, from List displayed on left select 'Advance Tax'. This link enables the dealer to remit AT through online in bulk and utilize the same as per the requirement of the dealer.

Next page displays 2 options,

Option 1 - Advance tax payment for checkpost transaction

Option 2 - Advance payment of tax for KGST(90%)/ Works Contract

Clicking on Option 1 leads to the page that lists out the steps in this module as,

1. Enter payment particulars

2. Make e-payment

3. Status of payments

4. New utilisation

5. Modify utilisation

6. Submit/ Print utilisation receipt

7. Reports (Payments/Utilisations)

Option 2 lists out following

1. Enter payment particulars

2. Make e-payments

3. Status of payment

In most cases, dealers are concerned with 'Option 1 - Advance tax payment for checkpost transaction' and in this instance we need the following details ready in hand to successfully complete the Advance tax remittance,

1. Payment particulars - Application Date, Advance Tax Amount, Remarks.

Advance tax amount can be a rounded sum or the tax amount required to be remitted for a particular load of vehicle.

2. Utilisation details - The 'Concept of Utilisation' is explained in 'Hand book of e-services' as 'The remitted amount can be utilized, as per the requirement of the dealer. After successful utilization, if any balance amount is available in the credit of the dealer, the same could be utilized for any future requirements, as desired.'
In practicality this translates as 'Unless and until a specific utilisation is generated for the amount remitted as Advance Tax, the credit for the same will not be available to the dealer in the next return.'i.e. Advance tax remitted will lie idle without showing any credit in name of the dealer, though the dealer has remitted the same to the department.

The utilisation details include,

(a) VEHICLE DETAILS

Vehicle number, Driver License No., Vehicle type, Driver name, Driver Address, Expecting Check post, Expecting Date.

(b)TRANSACTION DETAILS -

 (i) Consignor/Consignee Details - Registration Status, TIN, Name, Address, State, C.S.T. ID

 (ii) Other Details - Commodity, Rate of Tax, Invoice No. , Invoice Date, Qty, Qty Unit, Weight, Weight Unit, Invoice value, Freight Charge, OtherCharges, Total Value, Tax Due, Cess amount, Total Tax amount.

It is pertinent to note in this case that the Utilisation of the Advance tax can be generated only for the commodities listed in the AT(Advance Tax)  module.Currently this list includes 31 items as mentioned below,

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No.	Commodity Id	Commodity	Rate of Tax
1	1204	CARDAMOMS	4
2	1246	CASHEW, RAW	4
3	1359	CERAMIC TILES/VITRIFIED TILES	12.5
4	1404	RUBBER WOOD	4
5	1602	BITUMEN	4
6	1660	COFFEE BEANS	4
7	1959	CUDDAPPAH STONE SLABS	12.5
8	2577	ELEVATORS	12.5
9	2829	FIRE WORKS	12.5
10	3302	GRANITE SLABS	12.5
11	3514	HIDES AND SKINS, RAW (OTHER)	4
12	361	ARECANUT	4
13	3690	IRON AND STEEL	4
14	3951	LIFTS	12.5
15	4160	MARBLE SLABS	12.5
16	4864	PACKING CASES	4
17	5043	PEPPER	4
18	5320	PLYWOOD	12.5
19	5633	READYMIX CONCRETE	12.5
20	5896	SAND	4
21	6241	SOFT WOOD	4
22	6794	TIMBER	12.5
23	7629	DAY OLD CHICKS	12.5
24	7630	GLASS	12.5
25	7657	SPLINTS FOR MATCH	4
26	7730	GRANITE TILES	12.5
27	7731	MARBLE TILES	12.5
28	7740	GENERATORS	4
29	7752	VENEER SHEETS FOR PLYWOOD	4
30	7855	CHICKEN AND POULTRY - LIVE, FROZEN OR PROCESSED	12.5
31	825	BLACK BOARD	12.5

Once the utilisation is generated, the credit will be shown in next return automatically. After entering the details regarding utilisation, for printing and submitting the same use 'Submit/Print Utilisation Receipt' link in the Advance Tax module.

The module also gives the option to change/modify any utilisation that has not been submitted yet.

'Reports (Payments/Utilisations)' link gives details of the Total Advance Tax payment made, the Total amount Utilized for various transactions and the balance amount that is available in credit of the dealer.