Recent+changes+by+ca+nimesh+dedhia

Recent Changes in Form 704

Dahisar CPE Study Circle

ByCA. Nimesh Dedhia

Amendment to Form 704 Notification

– New version 2.0.0 of Form 704 introduced byNotification No.VAT/AMD/2013/1B/ADM-8dated 23/08/2013.

Made changes in:Letter of SubmissionPart-1Schedule – I, III, IV & VAnnexure – EAnnexure – GAnnexure – IAnnexure J1 & J2Removal of Annexure J3 & J4

Notification– New version 2.0.0 of Form 704 introduced by

Notification No.VAT/AMD/2013/1B/ADM-8dated 23/08/2013.

Made changes in:Letter of SubmissionPart-1Schedule – I, III, IV & VAnnexure – EAnnexure – GAnnexure – IAnnexure J1 & J2Removal of Annexure J3 & J4

Letter of Submission• Previously dealer was required to submit Balance Sheet,

Profit & Loss Account, Statutory / Tax Audit Report, TrialBalance in case of Multi-State Activity and Part-I of Form 704along with Letter of Submission.

• Then by Trade Circular No.16T of 2011 dated 11/11/2011they have removed the requirement to submit Balance Sheet,Profit & Loss Account, Statutory / Tax Audit Report and TrialBalance in case of Multi-State Activity from the year 2010-2011.

• Now they have removed the “Enclosures” & as per theinstruction no.27 delar is now required to submit only Letter ofSumission & Ack of Form 704 filed.

• Submission of Part-1 is required or not?

• Previously dealer was required to submit Balance Sheet,Profit & Loss Account, Statutory / Tax Audit Report, TrialBalance in case of Multi-State Activity and Part-I of Form 704along with Letter of Submission.

• Then by Trade Circular No.16T of 2011 dated 11/11/2011they have removed the requirement to submit Balance Sheet,Profit & Loss Account, Statutory / Tax Audit Report and TrialBalance in case of Multi-State Activity from the year 2010-2011.

• Now they have removed the “Enclosures” & as per theinstruction no.27 delar is now required to submit only Letter ofSumission & Ack of Form 704 filed.

• Submission of Part-1 is required or not?

Letter of Submission• Now if dealer is accepting the auditor’s recommendation & tax

is payable, dealer is required to give payment details in Letterof Submission.

Part - 1

• Previously words were used as “We here by annex a copy of……” & “ And annexed herewith…..”

Part - 1• In table-1, serial no.5(a)(ii) return in form 424 is inserted along

with form 405.

Part-1• In table-1, serial no.2(B)(b) selection of annexure J3 & J4

have been removed.• In table-1, serial no.2(B) clause (C) & (d) are clubbed as

clause (c).

Part-1• Clause (d) and Clause 7 below table 5 are newly inserted.

Part-1• Enclosures at the end of Part-1 are deleted

Schedule – I, III, IV & V• There are few changes in this schedules

with respect to Purchase tax on Purchaseof Cotton or Oil seeds from UnregisteredDealer and transferred to OMS Branchesor Agents or used in Manufacturing of taxfree goods or taxable goods & goods somanufactured are transferred to OMSBranches or Agents. The said changeshas been made due to insertion of Section6A & 6B w.e.f. 01.05.2012.

• There are few changes in this scheduleswith respect to Purchase tax on Purchaseof Cotton or Oil seeds from UnregisteredDealer and transferred to OMS Branchesor Agents or used in Manufacturing of taxfree goods or taxable goods & goods somanufactured are transferred to OMSBranches or Agents. The said changeshas been made due to insertion of Section6A & 6B w.e.f. 01.05.2012.

Schedule – I, III, IV & V• Clause f1 has been newly inserted to provide for

“Any other e.g. Purchase Tax, Late Fee (PleaseSpecify)” (Clause a1 is also inserted for PurchaseTax, so why they have mentioned Purchase Tax inClause f1 also?)

• Clause f1 has been newly inserted to provide for“Any other e.g. Purchase Tax, Late Fee (PleaseSpecify)” (Clause a1 is also inserted for PurchaseTax, so why they have mentioned Purchase Tax inClause f1 also?)

Annexure - E• Heading changed to “Computation of set-off claim on the

basis of Tax Paid Purchases” from “Computation of set-offclaim on the basis of Tax Paid Purchases effected fromRegistered Dealers”

• Section-1 heading changed to include Purchase Tax paid onURD Purchases. New raw inserted to incorporate purchasetax payable.

• Heading changed to “Computation of set-off claim on thebasis of Tax Paid Purchases” from “Computation of set-offclaim on the basis of Tax Paid Purchases effected fromRegistered Dealers”

• Section-1 heading changed to include Purchase Tax paid onURD Purchases. New raw inserted to incorporate purchasetax payable.

Annexure - E• In Section-2 new row no.12 is inserted to incorporate

purchase of taxable goods from registered dealer on whichset-off is not claimed.

• Section-4 : The row no.3 has been divided into row no.3 &row no.3A

Annexure - E

• Section-5 : The row no.10 & 11 has been inserted to providedetails of total tax paid purchases effected from registereddealers on which set-off is calculated and allowed under rule52A & 55B along with Rule 52.

Annexure - E

52A. Set-off in respect of goods manufactured by Mega Unit55B. Applicability of set-off to developers and units in Special Economic Zone.

Annexure – G, I, J1 & J2• Annexure – G : Additional rows has been

inserted upto 5000 in place of 1000.• Annexure – I : Additional rows has been

inserted upto 5000 in place of 1000.• Annexure – J1 : Additional rows has been

inserted upto 5000 in place of 1000.• Annexure – J2 : Additional rows has been

inserted upto 5000 in place of 1000.

• Annexure – G : Additional rows has beeninserted upto 5000 in place of 1000.

• Annexure – I : Additional rows has beeninserted upto 5000 in place of 1000.

• Annexure – J1 : Additional rows has beeninserted upto 5000 in place of 1000.

• Annexure – J2 : Additional rows has beeninserted upto 5000 in place of 1000.

Removal of Annexure J3 & J4• Both the annexure J3 & J4 have been

removed.• So now details of Debit Note & Credit Note

required to be net off with J1 & J2.• This changes in line with annexure filed for

non audit cases.Issue:If there is only Purchase Return or Sales

Return of any party, where to give detail?

• Both the annexure J3 & J4 have beenremoved.

• So now details of Debit Note & Credit Noterequired to be net off with J1 & J2.

• This changes in line with annexure filed fornon audit cases.

Issue:If there is only Purchase Return or Sales

Return of any party, where to give detail?

Thank you

Email: [email protected]