Haryana Vat e-payment though All Leading Banks

Friends,   Haryana Vat payment is earlier possible through only State Bank of India or Punjab National Bank. But now the same is possible with the help of Internet Banking of All Leading Banks. There is no link for e-payment  at http://egrashry.nic.in .   Haryana Vat Payment from any bank (via Payumoney.com) can be done after login at www.haryanatax.gov.in .   Login ID and OTP is providing by the Vat Offices.   This user id and password is also helpful for uploading online Haryana Vat Returns.   Screen shoots are given for more clarity :- 

Online Vat Return system in Haryana

Friends,  Haryana Government has also started to accept online Vat Return submission system.   The free utility to generate XML file is available at www.haryanatax.gov.in .   Utility has provided Excel Based or CSV based templates to upload bulk Vat Return data.   Data can be entered in utility directly one by one or with the help of  Templates.    

                    Earlier there was no Vat Form for informing Tax Free Sales.  But now two more new Vat Forms have been Added in Annexures named  LS4A and LS4B.  

                       In the first experience , It feels that there is some difficulty in selection of Name of Major Items through Popup Window.    List of all Items can be viewed in a excel sheet after unhide the sheet Named "Hidden".  The said sheet is required to choose required item name while entering i Excel Template etc.  Screen shoot of the list is given below :-

Download All Templates with Software in Version 0.0.6 (Click Here)

Vat :- What is Composition Scheme with merit or demerit

                     Composition scheme

The VAT Acts are designed so that high value tax payers should not be spared and on the contrary small dealers should be hassle free from compliance procedure.                                                                        The object of all such composition schemes is not to burden small dealers by the provisions of record keeping. Therefore, such schemes will generally contain the following features:

1. Such dealer shall require registration under VAT Act of a State.
2. A small dealer whose turnover does not exceed a specified limit of Rs. 25 lakhs. (in delhi it is Rs. 50 lakhs) can opt for composition scheme.
3. He shall have to pay tax himself at a small percentage of gross turnover.
4. Such dealer shall not be allowed input credit on the purchases made by it from other dealers.
5. A simple return form to cover longer return period shall be sufficient.
6. The buyer of goods from a dealer under composition scheme will not be entitled to input VAT Credit.
7. The dealer covered under the composition scheme shall not be required to maintain lengthy records as are required under VAT.
8. Such scheme is a optional scheme.

Who is not allowed to opt for composition scheme  

The following dealers are not allowed to opt for composition scheme.

1. A manufacturer or any other dealer who makes an inter State purchases.
2. A manufacturer or any other dealer who makes an inter State sale.
3. A manufacturer or any other dealer who exports or import the goods to a country outside india.
4. A dealer who wants to issue VAT invoice.
5. A dealer who wants to transfer goods outside the State otherwise than by way of sales.

Merits

The following are merits of composition scheme.

1. The dealer is not required to maintain the detailed VAT records.
2. The dealer is required to file return in a simple form and it is required for a longer period instead of monthly or quarterly.
3. The dealer has to pay only a small percentage of tax. However it cannot be separately collected from the purchasing but can be included in the sale value of the goods.
4. It s implies tax calculation as No input tax credit is available.

Demerits

1.  No input tax credit can be availed by the dealer under composition scheme on its purchases.
2.  No input tax credit will be available to the dealer who has purchased goods from the dealer who is under composition scheme.
3. VAT chain breaks on opting of composition scheme as the person under composition scheme cannot issue tax invoice which is main requirement of availing input tax credit and continuing of VAT chain.

Refund of VAT (Value Added Tax)

Refund of Vat
       Credit of tax paid in inputs/Capital goods is available to the utilised against tax liability which will be calculated on the sale of final product.   Vat credit can not be availed if no tax is payable on final product being exempt or taxable at lower rate.  Similar situation will arise in the case of exporters also.   Hence a mechanism is needed for the early refund of tax paid on input/capital goods in the case of dealer/manufacturer of exempted goods or exporters.  similarly refunds will also arise on sales made to diplomats/diplomatic missions and to other organisations who are exempted from the levy of sales tax.


Non-Availability of input credit in certain cases. 
          In the following cases credit of Tax paid on inputs shall not be allowed:

1. Where final product is exempt- Credit of tax paid on inputs is available only if tax is paid on final products.  When final product is exempt from tax, credit will not be allowed.  If credit was availed, it will have to be reversed on pro-rata basis.
2. No Credit if input lost/damaged/stolen before use- Where the inputs have been lost or damaged or stolen before these have been used, credit of tax paid on such input shall not be allowed.  If credit was availed, it will have to be reversed. 
3. No credit on certain purchases- Generally, in following cases, credit is not availale-
   (a) Purchase of automobiles.
   (b) Fuel. However, some states are allowing input credit for the same.