tax update tsmt th - wordpress.com · 2013. 10. 16. · tsmt new e sugam notification effective...
TRANSCRIPT
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Tax update 15th October 2013
e-sugam notification revised
1
The Karnataka Government has
released a new notification specifying
the documents that are to be carried for
all movement of goods to, from or
within Karnataka.
This new notification will apply for all
movement of goods taking place from
the 1st of November 2013 onwards.
The earlier notification will stand
withdrawn from this date.
2
Major Changes
E Sugam is now mandatory for the
following additional goods, for
despatches as a result of sale (if sale
value exceeds Rs. 20,000):
a. Cement b. Chemicals of all kinds c. Electronic goods of all kinds d. Lubricant Oil and Waste Oil e. Machinery and Parts f. Non Ferrous metals in all
forms g. Packing Material h. Readymade Garments i. Tea
3
The E Sugam form now contains some
additional fields such as the taxable
value of the goods, the amount of tax
collected and rate of tax.
E Sugam is also made mandatory for
receipt of the following additional
goods from outside the State:
a. Chemicals of all kinds b. Electronic Goods of all kinds c. Non Ferrous Metals d. Packing Materials e. Pepper f. Readymade Garments g. Tea
Notification No. ADCOM (I & C)/P.A./CR-31/2011-12 Office of the Commissioner of Commercial Taxes, Karnataka Dt. 09/10/2013
TSMT New E Sugam Notification
Effective from
1st November 2013
KVAT
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2
7th Time that the E-sugam
notification is being
amended
Our View
Use the E-sugam for all
movement of goods
irrespective of whether it is
mandatory as per the
notification
1
Section 53(2) of the Karnataka Value
Added Tax Act, 2003 specifies that
certain documents shall accompany a
goods vehicle and empowers the
Commissioner to notify the goods, the
transport of which needs to be entered
in the notified website.
In pursuance of the above, the
E- Sugam facility was introduced.
The E- Sugam is akin to a delivery
note that contains all the relevant
particulars of the goods and the
transportation.
The details, once entered on the
website, constitute the E Sugam Form
which carries a unique number.
The Form may be printed or just the
reference number of the Form may be
carried along with goods.
2
The notification categorises the
movement of goods into 5 different
classes, viz
1. Movement as a result of Sale
2. Movement not as a result of
sale
3. Receipt of goods from
outside the state
4. Movement within Revenue
District for Job-Work
5. Movement within Revenue
District other than for Job-
Work
As regards points 1 & 3, the list of
goods to which the provision applies
has been specified. Further, even for
the goods specified, E-Sugam has been
made applicable only if the value of the
goods exceeds Rs. 20,000/-.
E-sugam demystified
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3
3
Point No. 3 includes receipts of goods
into the State for any purpose
including in the course of imports.
Point No. 2 dealing with movement
not as a result of sale mandates the
raising of E-Sugam for all such
outward movements which are not as
a result of sale. This, therefore, covers
all movements such as stock transfers,
goods despatched for repair, job work,
goods returned etc.
The points 4 & 5 are really sub sets of
Point No. 2. This causes some
4
confusion as one would assume that all
movements, which are not as a result
of sale, necessarily need to be
accompanied by the E-Sugam Form in
terms of Point No. 2 discussed earlier.
However, Point No. 4 has once again
mandated the E-Sugam form for
movements within the revenue district
for Job Work purposes.
The subsequent movement from the
job worker has been exempted from
this provision and the only
requirement is that the goods must be
accompanied by a self printed delivery note (Form 515) or a labour charges bill.
Point No. 5 has also got a blanket exemption and for any movement within a revenue district that does not result in sale and is not for job work purposes (eg. Movement for weighment, branch transfer etc.) only a self printed delivery note in Form 515 needs to be carried.
The term revenue district has not been defined and may be the subject matter of unnecessary controversy.
Further, it is not clear if the Provisions governing Points 4 & 5 override the provisions in Point No. 2.
To avoid litigation and harassment at checkposts, it may be better to raise E-Sugam for movements covered under Points 4 & 5, BUT along with the self printed delivery note in Form 515!
The procedural aspects of how to access the website and general guidance regarding the usage of the website along with provisions governing the raising of E Sugams through Mobiles are detailed in the notification.
The valiadity period of the Forms has also been specified and ranges from 2 days to 10 days depending on the distance between the origin and destination of the goods.
CONCLUSION:
For Point No. 1 – Invoice + E-Sugam
For Point No. 2 – E Sugam + relevant document such as Stock Transfer Note
For Point No. 3 – E Sugam + Purchase Invoice/Relevant Document
For Point No. 4 & 5 – E Sugam + Form 515 + other relevant document such as labour
charges bill, if applicable.