GOVERNMENT OF ANDHRA PRADESH
COMMERCIAL TAXES DEPARTMENT
Office of the
Commissioner of Commercial Taxes,
Enforcement Wing, A.P., Hyd.
CCT’s Enft Ref.No. D2/172/2010, Dated 25-03-2011
Sub: Check Posts – Functions - Instructions issued - Regarding
Ref:- 1. CCT’s Enft. Ref. No. D2/172/2010, dated 01.11.2010.
***
The attention of Deputy Commissioners (CT) having the jurisdiction over the Check Posts in the State is drawn to the circular instructions issued in the above reference cited (Copy enclosed). In the first phase these instructions were issued for ICP, Bhoraj of Adilabad Divn, ICP, Salora of Nizamabad Divn ICP, Naraharipet of Chittoor Divns.
It is now decided to extend the guidelines issued in the above Circular to rest of the Check Posts in the State w.e.f 15-4-2011. Hence, the Deputy Commissioners (CT) concerned are requested go through the instructions for implementation with effect from 15-4-2011.
Compliance report in this matter may be sent by 25-4-2011
Encls: Ref. 1st Cited.
Commissioner (CT)
To
The Deputy Commissioners (CT) concerned
The AOs/ACTOs –Incharge of the Check Posts in the State
( Except , Bhoraj, Salora and Naraharipet
where already these guidelines implemented)
Copy of :
GOVERNMENT OF ANDHRA PRADESH
COMMERCIAL TAXES DEPARTMENT
Office of the
Commissioner of Commercial Taxes
Enforcement Wing, A.P., Hyd.
CCT’s Enft.D2/172 /2010. Dated: 01.11.2010
CIRCULAR
Sub:-Check Posts – New Image and Meaning to the functions of Check Posts – Change management-Pilot implementation at 3 CPs - Guidelines Issued - Regarding.
Ref:-Arising
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In view of several representations received from FAPCI, Trade bodies and individual complaints, it is proposed to stream line and give new image and meaning to the functions of Check Posts. It is well known that the primary objective behind establishing of Check posts is to:
1. Ensure that Goods with valid documents enter or exit the State boundary so as to ensure due tax are paid by trade
2. To record details of entry and exit of Goods so as to ensure same are accounted for by the Trade and
3. To collect tax, penalty and compounding fee if there is violation of tax laws
Hence in nutshell, the primary function of Check Post is to ensure tax compliance by the Trade. The purpose behind collection of Tax and Penalty is to create a deterant mechanism against tax evaders. But over a period of time, Check Posts, instead of creating environment for improvement in tax compliance, becoming a mechanism of raising revenue through collection of tax and penalty, perhaps on the presumption that levy and collection of tax and penalty will force trade to follow tax laws. But experience has been quite different.
It is a fact that all over the country, Check Posts shows Tax departments in a very bad light. Complaints like harassment on flimsy ground and incidence of corrupt practices are quite common all over the country.
In this back ground, it is proposed to give new image and meaning to functions of Check Posts to address such issues. It is proposed to shift focus from tax and penalty collection to improvement in tax compliance by trade. To make Check Posts functioning trade friendly but at the same time ensure tax compliance by the trade.
Issue was discussed at length with senior officers the department and after thorough brain storming session and discussion following guidelines are issued for checking of the vehicles by Check Posts. As a pilot implementation, initially these guidelines will be made applicable to three CPs namely 1) Bhoraj (Adilabad Division) 2) Naraharipet (Chittoor Division) 3)Saloora (Nizamabad Division).
Primary Objectives of Check Posts:
1. To ensure tax compliance by trade by ensuring that Goods enter or exit with valid and proper documents
2. To record details of Goods entering or leaving the State and make available such information to Tax authorities for ensuring tax compliance by the trade and
3. Trade friendly but firm administrative environment
Functions of Check Post:
To achieve above objectives, Check Post shall take following steps to discharge its functions:
1. All the staff posted at Check Posts shall bear name badge at all times of duty
2. Put display boards in multiple languages indicating clearly functions of Check Post, List of valid documents that will facilitate entry or exit of Goods, Penalty provisions in case Goods carrying vehicle fails to provide valid documents but still desires entry or exit, Telephone Numbers email Id of DC, CTO and CCT office
3. Train its staff for trade friendly but firm behavior
4. Check the documents for completeness and correctness
5. Allow the vehicle to pass check post if documents are in order
6. If documents are not in order, issue detention order listing out clearly the defects in the documents and serve it on the person incharge of the goods vehicle. It should also be stated in the detention order that if the defects pointed out in the detention order are rectified, the goods vehicle will be permitted to proceed to its destination and in case the defects are not rectified the dealer or person incharge of the goods vehicle should approach the Commercial Tax Officer concerned for assessment of tax, penalty and compounding fee to be paid.
7. CTO or DCTO concerned as authorized by DC, shall verify the documents and levy tax, penalty and compounding fee as per Rules and Regulations. On receipt of tax, penalty and compounding fee amount, CTO/DCTO as the case may be, will issue order to Check Post to allow the vehicle to pass through the Check Post.
8. On receipt of order of CTO/DCTO, allow vehicle to pass through Check Post.
9. Check Post shall not pass any assessment order for payment of Tax and Penalty etc.
List of Valid Documents for entry of Goods:
1. Invoice or Delivery Challan or Stock transfer Memo or Central Excise Gate document of Seller/Consignor
2. CST Way Bill issued by the Buyer/Consignee if commodity being carried is sensitive commodity
List of Valid Documents for exit of Goods:
1. Invoice or Delivery Challan or Stock transfer Memo or Central Excise Gate document of Seller /Consignor
2. CST Way Bill of the Seller/Consigner
3. Any other Certificate prescribed by Government from time to time
In order to ensure that Trade is following Tax laws properly, DC concerned shall arrange for random and surprise checks of vehicles on all routes now and then. If any vehicle is found carrying Goods without valid documents or order of CTO/DCTO, the assessing authority shall take a very serious view of such violations and assess the Goods accordingly for Tax, Penalty and Compounding fee including confiscation of Goods not supported by valid documents.
Senior Officers from O/o CCT and DC office will be deputed for a day or more for conducting hand holding demonstration to the staff at these Check Posts for smooth change over to new concept.
These new guidelines will come into force with effect from December 1, 2010 at the Check Posts indicated above and shall remain in force till further orders.
Sd/- Suresh Chanda Commissioner of Commercial Taxes
To
The Deputy Commissioners (CT) concerned
The Check Posts concerned
The Trade representatives
Check List (Incoming Vehicles)
1. Invoice/Delivery Challan/Stock transfer Memo/Central Excise Gate document (of Seller/Consignor) not produced
2. Advance way bill issued by Buyer/Consignee not produced for sensitive goods.
3. TIN Number of the consignor and consignee not mentioned on documents.
4. Date not mentioned in the documents indicated at Sl. No. 1
5. Other Certificate not produced where ever necessary
6. Variation in quantities mentioned in the documents indicated at Sl. No. 1 and actual quantities in the vehicle
Sd/-______
Check List (Outgoing Vehicles)
1. Invoice/Delivery Challan/Stock transfer Memo/Central Excise Gate document (of the Seller/Consignor) not produced
2. CST way bill issued by Seller/Consignor not produced
3. TIN Number of the consignor and consignee not mentioned on documents.
4. Date not mentioned in the documents indicated at Sl. No. 1.
5. Declaration of Non Dealers of AP not produced
6. Other Certificate not produced where ever necessary
7. Variation in quantities mentioned in the documents indicated at Sl. No. 1 and actual quantities in the vehicle
Sd/- ______
Display Boards at Check Posts
Functions of Check Posts
1. Allow the movement of goods vehicles with proper and valid documents
2. Record the transactions to ensure proper accounting by the Trade
3. In case valid and proper documents are not produced, provide single opportunity for rectification of defects and if defects are not rectified, refer the matter to CTO/DCTO concerned for assessment for Tax, Penalty and Compounding Fee
List of Valid Documents for entry of Goods:
1. Invoice or Delivery Challan or Stock transfer Memo or Central Excise Gate document issued by the Seller/Consignor
2. CST Way Bill issued by Buyer/Consignee if commodity being carried is sensitive commodity
List of Valid Documents for exit of Goods:
1. Invoice or Delivery Challan or Stock transfer Memo or Central Excise Gate document issued by Seller/Consignor
2. CST Way Bill issued by Seller/Consignor
3. Other Certificate
Address of CTO:
Telephone No. and email Ids:
CTO:
DC:
Asst.Commissioner(CT) Check Post
CCT Office:
*** The telugu version of the display of boards will be enclosed as pdf separately through mail which is in the attachment
1
ENFT/D2/172/2010 Dated:25/03/2011