GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

 

Induction of Private Sector Banks for conduct of State Government Business – Handling of Commercial Tax business – Entrustment of monthly refunds to Plastic Dealers under VAT through UTI Bank Limited for period of 3 months – Relaxation to S.R.27 under T.R.16 – Orders – Issued.

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FINANCE (TFR.I) DEPARTMENT

 

G.O.Ms.No.177                                                                                                           Date.15-07-2005

       Read the following:-

 

 

                     (1) G.O.Ms.No.485, Revenue (CT.IV) Dept., dt.21-7-2000.

                    (2) Letter No.DGBA GAD/No/229/42.01.001/2003-04, dt.29-8-2003 

                            of CGM, RBI, Mumbai.

                    (3) G.O.Ms.No.227, Revenue(CT.IV) Dept., dt.1-5-2002.

                     (4) A.P.Value Added Tax Act, 2005.

                    (5)Letter No.UTIB/HYD/CTO/05-06, dt.11-5-2005 of Branch Head,     UTI Bank Limited.

                    (6)Letter No.CCT’s Ref.VAT/Refunds/2005, dt.19-5-2005 of   Commissioner of Commercial Taxes, A.P., Hyderabad.

 

***

 

ORDER:

 

1.         In the reference 1st read above, orders have been issued entrusting the work of collection of commercial taxes to UTI Bank Limited on behalf of the commercial taxes department in the twin cities through Cash Management Services (CMS) along with State Bank of Hyderabad and vide reference 3rd above, the UTI Bank was also permitted to collect commercial taxes at Guntur, Kakinada and Rajahmundry.

           

2.         In the reference 2nd read above, the Reserve Bank of India has authorized four Private Sector Banks in addition to the Public Sector Banks as its agents for conduct of Government Business including State Government Business and the UTI Bank Limited is one among the four authorized banks.

 

3.         In the reference 4th read above, the Government of Andhra Pradesh has introduced Andhra Pradesh VAT Act 2005 w.e.f. 1-4-2005.

 

4.         In the reference 5th read above, the Branch Head, UTI Bank Limited, Hyderabad has offered their willingness to handle the tax refunds under the new VAT Act as it has been collecting the commercial taxes in certain places in the State of Andhra Pradesh for the last three years as it is an authorized private sector bank to conduct State Government Business and summarized a procedure for smooth tax refunds under VAT.

 

5.         In the reference 6th read above, the Commissioner of Commercial Taxes, A.P., Hyderabad has intimated that, the UTI Bank Limited has requested to appoint them as Authorized Government Payment Banker for the purpose of handling tax refunds and proposed a system for crediting the tax refund directly into bank account of the VAT dealer.

 

6.         According to S.R.27 under T.R.16 of A.P. Treasury Code, Volume-I i.e., Refunds of Revenues “Bills for drawing moneys from the Treasury on account of refunds of revenue shall be prepared in Form 62 and every refund shall be noted against the original receipt entry in the departmental accounts.  The Treasury or the Sub Treasury Officer shall not pay any such bill unless particular of the order of the sanction of competent authority is furnished on the voucher and a certified copy of the order is attached to it if no copy is separately communicated to the Accountant General.  A Government servant who draws a bill for a refund of revenue shall certify on the bill that the restrictions prescribed by the Government in regard to time limits for claims for refunds have not been contravened.”

 

7.         Under the new A.P.VAT Act and Rules, a monthly refund may be required and such frequent refunds may be difficult to implement under Treasury Rules. It is not possible to apply S.R.27 T.R.16 to VAT if monthly refunds are to be provided to dealers.  The Revenue Department has proposed to entrust refunds of Plastic VAT Dealers under A.P. VAT Act through UTI Bank.

 

8.         Government after careful examination of the matter and in relaxation of S.R.27 under T.R.16 of A.P. Treasury Code, Volume-I issues the following order.

 

(I)  The UTI Bank Limited is hereby entrusted the work of payment of tax refunds under A.P.VAT Act, 2005 for a period of three months only in respect of Plastic VAT Dealers under A.P. VAT Act in twin cities of Hyderabad and Secunderabad.

 

 (II) For all other refunds including those under APGST ACT and other refunds of VAT dealers, the procedure already prevailing shall be continued.

 

9.         These orders come into force with immediate effect and also available in          A.P. Government Website www.aponline.gov.in

 

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

 

                                                                P. RAMAKANTH REDDY

PRINCIPAL Secretary TO GOVERNMENT

 

To

The Branch Head,

U.T.I. Bank Limited, Begumpet, Hyderabad – 500 016.

The Commissioner of Commercial Taxes, A.P., Hyderabad.

The Chief General Manager,

Reserve Bank of India,

Department of Government and Bank Accounts,

Mumbai.

The Reserve Bank of India,

Secretariat Road, Saifabad, Hyderabad.

The Principal Accountant General (Audit.I) A.P., Hyderabad.

The Accountant General (Audit.II), A.P., Hyderabad

The Accountant General (A&E), A.P., Hyderabad.

The Director of Treasuries and Accounts, A.P., Hyderabad.

The Pay and Accounts Officer, Hyderabad.

The Revenue Department, A.P.Secretariat, Hyderabad.

The Finance (Exp.Revenue) Department, A.P.Secretariat, Hyderabad.

The Finance (BG.I) Department, A.P.Secretariat, Hyderabad.

SF/SC’s.