No. C1-15418/95/TX.                                          Office of the Board of Revenue (Taxes),

                                                                               Thiruvananthapuram, Dt. 05..04..1995.

CIRCULAR No. 8/95/TX

Sub:   KGST Act – Section 29A (2B) – payment of advance tax – certain instructions issued

Ref:    1. Board’s Circular No. 24/89 dated 18..09..89

          2. Circular No. 25/89/Tx dated 16..10..89

          3. Circular No. 13/91 dated 16..11..91

…..

In Board’s Circular  No. 13/91 dated 16..11..91 certain guide lines were issued regarding the collection of advance tax under section 29A(2B) of the KGST Act, in respect of goods taxable at the point of last purchase. But it is found that the instructions cause hardship to dealers who are prompt in the payment of tax.

In the circumstances the following further instructions are issued in partial modification of the Circulars cited.

1.                  The dealers who are prompt in the filing of returns and payment of tax, as revealed from past records, will be permitted to transport goods without payment of tax in advance.

2.                  The assessing authorities will verify each case with reference to past records and issue certificates in the Proforma appended to those dealers falling under item (1) above.

3.                  The dealers may carry a photo copy of the certificate along with each consignment.

4.                  The assessing authority shall forward a list of the cases in which such certificates are issued to the check post(s) noted in the certificate along with a specimen signature slip and the seal affixed.

5.                  The assessing authorities will ensure that along with the monthly or quarterly return as the case may be, the original copies of the delivery note used for transport during the month shall be invariably filed.

6.                  Where it is found that a dealer to whom a certificate had been issued as per the previous para is irregular in payment of tax or in filing of return or in the filing of the original copies of the delivery notes or that a case of evasion of tax is detected, the certificate shall be cancelled and immediate intimation given to all check posts regarding such cancellation.

The Deputy Commissioners shall acknowledge receipts of this circular and obtain acknowledgement from their subordinates.

Sd/-

Secretary (Taxes) – II