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:
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
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.
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:
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.
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.
Only one consolidated claim
for a quarter will be admitted for reimbursement of CST. No supplementary
claim shall be entertained.
The claim for CST reimbursement
for the amount below Rs. 100/- on any single invoice shall not be entertained.
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.
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 -----
1.
Name of the applicant
:
2. Full postal
address
:
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.
:
:
Registration No:
(With date or issue) issued
by S.T. Authorities under CST Act 1956
:
5. Details of
the goods brought into units
Name and address of the supplier
(including the name of the state where the supplier is located)
Description of Goods
Quantity
Value
Date of purchases of goods
Date of receipt of goods in
the Customs Bonded Premises of the EOU unit
Total amount of CST paid against
‘C’ Form
Sales Tax Registration No.
& date of the supplier under Section (7) of the Central Sales Tax
Act, 1956.
:
6.
Amount of CST claimed
:
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.
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.
The goods for which the claim
has been made have been entered into the stock register maintained by
the unit.
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:
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,
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.
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.
The payments have been made
through normal banking channel and have been credited to the accounts
of the DTA suppliers.
Such payment includes the
amount of CST indicated in the respective invoices.
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__________________________________
S.No.
Name and address of the supplier
Nature and description of
goods
Quantity received and accepted
Invoice value accepted
Invoice/Bill No. and date:
Date of Receipt of the goods
and S.No. of entry in material receipt register.
CST Amount paid
‘C ‘Form No.
Cheque/DD No.
date and amount
Name of Bank and Branch
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: