APPENDIX
– 14-I-I
Procedure to be followed for reimbursement of Central Sales
Tax (CST) on supplies made to Export Oriented Units (EOUs) and units in
Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP).
Note: Please see paragraph PARA 6.11(c)(i) of the
Chapter 6 of the Exim Policy.
1. The
procedure given hereunder shall be applicable for reimbursement of Central
Sales Tax.
2. The
Export Oriented Units (EOUs) and units in Electronic Hardware Technology Park
(EHTP) and Software Technology Park (STP) will be entitled to full
reimbursement of Central Sales Tax (CST) paid by them on purchases made from
the Domestic Tariff Area (DTA), for production of goods and services as per EOU
Scheme on the following terms and conditions:
(a)
The
supplies from DTA to EOU/EHTP/STP units must be utilised by them for production
of goods meant for export and/or utilised for export production and may include
raw material, components, consumables, packing materials, capital goods,
spares, material handling equipment etc. on which CST has been actually paid by
the EOU/EHTP/STP
(ii)
While
dealing with the application for reimbursement of CST, the Development
Commissioner or the designated officer of EHTP/STP shall see, inter alia, that
the purchases are essential for the production of goods meant for export and/or
to be utilised for export production by the units.
3. The
procedure to be followed in this regard is indicated hereinafter and shall be
strictly adhered to:
Procedure:
(i) The unit shall present its claim
for reimbursement of CST in the prescribed form (Annexure - I) to the
Development Commissioner of the SEZ concerned or the designated officer of the
EHTP/STP.
(ii) As soon as the goods are received
by the EOU/EHTP/STP unit in its premises it will be entered in the material
receipt register kept for the purpose.
The register must show the details of goods, quantity, the source of
purchase and the ‘C’ Form against which purchase is made, etc. which will be
subject to periodical check by the authorised staff of the Zone/Customs
administration. A Chartered
Accountant’s certificate regarding the verification of the materials receipt
register relevant to the claim as at Annexure - II shall be submitted alongwith
the claim.
(iii)
The
reimbursement of CST shall be admissible only to those units who get themselves
registered with the Sales Tax authorities in terms of Section 7 of the CST Act,
1956 read with (Registration and Turnover) Rules, 1957 and furnish a Photostat
copy of the Registration Certificate issued by the Sales Tax authorities to the
Zone office concerned for keeping it in the relevant file.
iv) Claims shall be admissible only if payments are made
through the bank accounts maintained by
EOU/EHTP/STP unit or DD emanated from its
accounts.
(v) The
claim shall be submitted along with the following documents:
a)
Chartered Accountant’s Certificate, from CA,
meeting the following criteria, certifying receipt of the goods as shown in Annexure-II in the bonded
premises, scrutiny of original invoice/bill of the supplier and proof of
payment against each invoice/bill and its reconciliation with ‘C’ Form:-
Eligibility criteria for C.A.
firms:
(i)In case of units located in
the States of J&K, Orissa, North-Eastern States, Andaman and Nicobar
islands and Lakshadweep, the Chartered Accountant firm should be at least a
Sole Proprietorship firm who should be an FCA and engaged full time with the
firm.
(ii) In case of partnership
Chartered Accountant firms located in the regions indicated in (i) above,
should have at least two full time partners, one of whom should be an FCA.
(iii) In case of units located
in other regions, the partnership Chartered Accountant firms should have at
least one full time partner, who should be an FCA.
(iv) For the regions indicated
in (i) above, the Chartered Accountant firm be located in the area where the
unit is situated otherwise qualification of (iii) shall apply.
b)
Photostat
copy of C Form issued by the EOU/EHTP/STP to the supplier in the DTA with
reference to the counterfoil produced by the unit. The counterfoil of C form will be returned to the unit after
making suitable endorsement like ‘cancelled/CST reimbursed’ duly signed by the
authorised officer of the Zone administration. While making the endorsement
only, the items for which CST has been reimbursed should be indicated as
cancelled and the Photostat copy will be retained by the officer for keeping in
respective file. In the event of the same `C’ form being used again, the
verification could be done at the time of scrutiny from the self-attested
photocopies. The firm must indicate the file No. on which the original stands
submitted.
(vi) The reimbursement will be limited to the payment of CST
against C Form only.
(vii) The EOU/EHTP/STP shall
also intimate the name of the
person/persons who are authorised by them to sign the C Form and furnish
three copies of his/their specimen signature(s) which will be kept in the
relevant file of the unit.
(viii)The reimbursement will be made on
quarterly basis. No claim for reimbursement
will be normally entertained if not claimed within a period of six months from
the completion of the quarter in which the claim has arisen. In case of procurement of goods against
payment in installments, the CST reimbursement claim may be made in the quarter
in which the full payment has been effected against the invoice/bill. In exceptional cases, the Development
Commissioner may consider delayed applications when received after the expiry
of the last date for submission of such application but within six months from
the last date with a late cut @ 10% on the entitlement after satisfying that
the delay was due to genuine grounds.
(ix)
Only
one consolidated claim for a quarter will be admitted for reimbursement of
CST. No supplementary claim shall be
entertained.
(x)
The
claim for CST reimbursement for the amount below Rs. 100/- on any single
invoice shall not be entertained.
(xi)
The
disbursing authority for the claim of reimbursement of CST will be Development
Commissioner/designated officer of EHTP/STP who will make payment to the
units. All claims shall be subjected to
post audit.
(xii)
The
unit shall preserve for three years all the original documents viz. Original
invoice/bill, money receipt/bank statement for random/sample checking and
produce the same as and when called for by the office of the Development
Commissioner. Random checking of 5% of
the claims of a particular quarter should be done in the next quarter through
generation of computer statements on the basis of serial numbers. The random list will be generated by the
Development Commissioner personally.
(Xiii) In case some glaring error or irregularity is
detected against any unit in claiming CST reimbursement, action to recover the
amount paid and levy penalty would be taken under FTDR Act against such unit.
(Xiv) Any dues of the
Government viz. arrears of Lease rent, amount on account of a Court’s decree or
Income tax recovery note, etc. will also be deductible from the claim amount or
it can be set off from the subsequent payment.
ANNEXURE 1
Application for claiming reimbursement
of Central Sales Tax against ‘C’ Form for the goods brought into the bonded
Premises of the EOU/EHTP/STP for the quarter ending on -----
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1.
Name of the applicant |
: |
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2.
Full postal address |
: |
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3.
(a) No. and date of letter of
Approval issued under EOU/ EHTP/ STP Scheme
(b) Whether the Letter of Approval is still valid on the date of this
application. |
: : |
|
4.
Registration
No: (With date or issue) issued by S.T.
Authorities under CST Act 1956 |
: |
|
5.
Details of the goods brought into units (b)
Name
and address of the supplier (including the name of the state where the
supplier is located) (c)
Description
of Goods (d)
Quantity (e)
Value (f)
Date
of purchases of goods (g)
Date
of receipt of goods in the Customs Bonded Premises of the EOU unit (h)
Total
amount of CST paid against ‘C’ Form (i)
Sales
Tax Registration No. & date of the supplier under Section (7) of the
Central Sales Tax Act, 1956. |
: |
|
6.
Amount of CST claimed |
: |
I/We hereby solemnly undertake/declare
that the particulars stated above are true and correct to the best of my/our
knowledge and belief.
No other application for claiming CST
has been made or will be made in future against purchase covered by the
application.
(a)
The
goods for which the claim has been made are meant for production of goods for
export and/or for export production of the EOU/EHTP/STP unit and will be
utilised only in our factory and we shall not divert or dispose off the
material procured without obtaining prior permission of the concerned
Development Commissioner.
(b)
The
goods for which the claim has been made have been entered into the stock
register maintained by the unit.
(c)
Any
information, if found to be incorrect, wrong or misleading, will render/us
liable to rejection of our claim without prejudice to any other action that may
be taken against us in this behalf.
If as a result of scrutiny any
excess payment is found to have been made to me/us, the same may be adjusted
against any of the subsequent claims to be made by my/our firm or in the event
no claim is preferred, the amount overpaid will be refunded by me/us to the
extent of the excess amount paid.
Signature :
Name in Block Letters :
Designation :
Name of the Applicant :
Firm :
ANNEXURE - II
CHARTERED ACCOUNTANT CERTIFICATE
I/We
hereby confirm that I/We have examined the prescribed material receipt registers,
books of account and the bank statement
in respect of the goods mentioned in the table appended, and each entry
of the application of
M/s_______________ for the
period-------------------------------------------- and hereby certify that:
(i)
The
following documents/records have been furnished by the applicant and have been
examined and verified by me/us, namely material handling registers certified by
the zone administration/Bonding Officer, original invoice/bill, books of
accounts and l Bank statement,
(ii)
Relevant
registers have been authenticated under my/our seal, signatures. It has been ensured that the information
furnished is true and correct in all respects, no part is false or misleading
and no relevant information has been concealed or withheld.
(iii)
The
Payment has been made by the said M/s.___________________________ to the DTA
suppliers in respect of goods received against the original invoice bill(s) as
indicated in the table annexed hereto.
(iv)
The
payments have been made through normal banking channel and have been credited
to the accounts of the DTA suppliers.
(v)
Such
payment includes the amount of CST indicated in the respective invoices.
(vi)
All
the items shown in the table are admissible for reimbursement of CST under
provisions of EOU Scheme
Neither I/We nor any of our
partners is a partner/Director or an employee of the above named entity or its
associated concerns.
I fully understand that any
submission made in this certificate if proved incorrect or false, will render
me/us liable to face any penal action or other consequences as may be
prescribed in the law or otherwise warranted.
Signature & Stamp/seal of the
Signatory___________
Name_______________________________________
Membership
No.______________________________
Full
address__________________________________
Name and address of the Institution
where registered.
Date:
Place:
DETAILS OF GOODS BROUGHT INTO UNIT AND
CENTRAL SALES TAX PAID DURING THE QUARTER__________________________________
(i)
S.No.
(ii)
Name
and address of the supplier
(iii)
Nature
and description of goods
(iv)
Quantity
received and accepted
(v)
Invoice
value accepted
(vi)
Invoice/Bill
No. and date:
(vii)
Date
of Receipt of the goods and S.No. of entry in material receipt register.
(viii)
CST
Amount paid
(ix)
‘C
‘Form No.
(x)
Cheque/DD
No. date and amount
(xi)
Name
of Bank and Branch
(xii)
CST
Registration No. of the supplier:
Note:
Table shall show supplier-wise sub-total and grand total of column (v), (vii)
and (x) Cheque/DD amount.
Signature & Stamp/seal of the
Signatory________________
Name____________________________________________
Membership
No.___________________________________
Full address_______________________________________
Name and address of the Institution
where registered.
Date:
Place: