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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 (except in case of IT enabled services (ITES)/Business
process outsourcing (BPO);
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.
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4.
Registration No:
(With date or issue) issued by S.T. Authorities under CST Act
1956
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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.
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6.
Amount of CST claimed
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Undertaking and Declaration
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:
TABLE
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:
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