GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

 

Induction of Banks for conduct of State Government Business – Handling of Commercial Tax Business- Refund of Commercial taxes through UTI Bank Ltd., SBI and SBH- Relaxation of S.R.27 under T.R.16 of A.P. Treasury Code, Volume-I – Orders – Issued.

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FINANCE (TFR.I) DEPARTMENT

 

G.O.Ms.No.224                                                                                  Date: 12-9-2005

                                                                                                            Read the following:-

 

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

(2)   G.O.Ms.No.177 Finance (TFR.I) Department, dated 15-7-2005.

(3)   Minutes of the meeting held on 8-9-2005 on resource mobilization of revenue generating departments, presided over by Hon’ble Chief Minister.

(4)   Letter No. Nil, dt. 12-9-2005 of CGM, SBH, Hyderabad.

(5)   Letter No. ITS / 427dt. 12-9-2005 of CGM, SBI, Hyderabad

 

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ORDER:

 

                  In the reference 1st read above, the Commissioner of Commercial taxes, A.P. Hyderabad has requested to appoint the UTI Bank Limited 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. In this connection it is also stated that 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 Special Chief Secretary to the Government, Revenue Department has recommended to entrust refunds under A.P. VAT Act, 2005 through UTI Bank Ltd.

 

2.               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 Offer 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.”

 

           

3.               In the reference 2nd cited Government in relaxation of S.R.27 under T.R.16 of A.P. Treasury Code, Volume-I had issued the orders entrusting the UTI Bank Limited with 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 and reiterated that for all other refunds including those under APGST ACT and other refunds of VAT dealers, the procedure already prevailing shall be continued.

 

4.               In the reference 3rd cited, it has been decided to broad-base the collection of commercial taxes for convenience of the people by inducting more banks for carrying the business under Commercial Tax Department including refunds along with UTI Bank, all other banks willing and ready to undertake this business may be given opportunity.

 

5.               In the reference 4th cited the Chief General Manager, State Bank of Hyderabad had expressed the bank’s willingness to collect, process and report transactions relating to commercial and other taxes.

 

6.               In the reference 5th cited the Chief General Manager, State Bank of India also had expressed the bank’s willingness to collect, process and report transactions relating to commercial and other taxes.

 

7.               The Government after careful consideration of the matter hereby issues the following orders.

 

i)                    The UTI Bank Ltd. is hereby entrusted the work of refunds of commercial taxes under A.P. VAT Act, 2005 for a period of six Months only, in respect of all VAT dealers under A.P. VAT Act, 2005 in the entire state in relaxation of S.R.27 under T.R.16 of A.P. Treasury Code, Volume-I.

ii)                   State Bank of India and State Bank of Hyderabad are hereby entrusted the work of collection and refunds of commercial taxes under A.P. VAT Act, 2005 in respect of all VAT dealers under A.P. VAT Act, 2005 through out the state of Andhra Pradesh in relaxation of S.R.27 under T.R.16 of A.P. Treasury Code, Volume-I.

iii)                 The Revenue Department and the Commissioner of Commercial Taxes are instructed to take necessary steps for establishing connectivity between Commercial Taxes Department and SBI and SBH for enabling efficient collection of taxes.

iv)                 Keeping in view of importance of collection of revenue it is imperative that the funds are collected efficiently and passed on to the government in the minimum possible time. To monitor this aspect the banks collecting commercial taxes on behalf of the government shall submit a report (as per proforma-I in annexure to this order) on weekly basis, to Finance (W&M) Department containing the information regarding daily collection of tax, the date of remittance of tax proceeds to the government account and reasons for any delay of credit to the government account and refund of tax. Further, details of the cheques above Rs. 1 lakh remitted by dealers as commercial tax such as the date of presentation of the cheque by the dealer to the bank, date on which the proceeds of the said cheque are remitted to the Government account and reasons for any delay should be reported on a weekly basis (as per proforma –II in annexure to this order) to Finance (W&M) Department .The proformae of the report is given in annexure to this order.

v)                  The Government shall in addition prescribe software to enable the banks to submit these details in due course and the banks should submit the data in the electronic form by adopting the software.

 

8.               The Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad is requested to monitor the transactions of the above banks and ensure that the amounts collected are credited without any delay and refunds made are genuine and authorized.

 

9.               The banks are liable for any unauthorized refunds made by them as determined by The Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad.

 

10.               These orders come into force with immediate effect and also available in Andhra Pradesh Government Website http://www.aponline.gov.in.

 

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

 

 A. GIRIDHAR

SECRETARY TO GOVERNMENT (IF)

 

To

The Chief General Manager, State Bank India, Local Head Office, Hyderabad.

The Chief General Manager, State Bank of Hyderabad, Head Office, Gunfoundry, Hyderabad.

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

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

The Chief General Manger-in-Charge, Reserve Bank of India. Department of Government and Bank

         Accounts, Mumbai.

The Regional Director, the Reserve Bank of India, Secretariat Road, Saifabad, Hyderabad.

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

Revenue Department, A.P Secretariat, Hyderabad.

Finance (Exp.Revenue) Department.

Finance (BG) Department.

SF/SC.

 

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Annexure

(Annexure to G.O.Ms.No.224, Finance (TFR-I) Department, Dated 12-9-2005)

 

 

Proforma – I

 

Details of Daily Commercial Tax Collections for the week ended ……..

(to be submitted to Finance (W&M) Department)

 

 

Name of the Bank:

 

Date

Tax Collected

 

Tax Refunds

Date of Remittance to State Government Account

Reasons for Delay

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proforma – II

 

Details of cheques above Rs. 1 lakh remitted by dealers as payment of commercial taxes for the week ended ……..

(to be submitted to Finance (W&M) Department)

 

 

Name of the Bank:

 

Cheque No.

Amount

Date of payment of cheque by the dealer to the bank.

 

Date of Remittance of the proceeds of the cheque to State Government Account by the bank.

Reasons for Delay