Karnataka Value Added Tax Notification -No. FD 46 CSL 2011, Bangalore, dated 25.05.2011

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VAT2011-21

VATCIR2011-21

No. Adcom(I&C)/P.A/CR-31/2011-12,Bangalore, Date:23-12-2011

Preamble

Whereas, Sub-section (2) of Section 53 of the Karnataka Value Added Tax Act, 2003 (Karnataka Act No.32 of 2004) specifies that certain documents shall accompany a goods vehicle which has to be produced at the time of checking of such vehicle and

Whereas, Clause (b) of Sub-section (2) of Section 53 of the Karnataka Value Added Tax Act, 2003 (Karnataka Act No.32 of 2004) authorizes the Commissioner to notify the documents which should accompany the goods carried in the goods vehicle and

Whereas, such production and verification of the documents consume time and may also lead to avoidable delays at the time of check and

Whereas, it is expedient in the public interest to have a system where all transactions recorded in such documents are properly accounted for by the dealers and

Whereas, Sub-section 2-A of Section 53 of the Karnataka Value Added Tax Act, 2003 (Karnataka Act No.32 of 2004) authorizes the Commissioner to notify the goods, the transport of which needs to be entered in the notified website.

Now, therefore, in exercise of the powers vested under Section 53(2-A)(b) of the KVAT Act, 2003 (Karnataka Act No.32 of 2004) and in supersession of the Notification No. Adcom(I&C)/P.A/CR-31/2011-12, dated 03-11-2011 dated 30-11-2011, the following Notification is issued and it comes into effect from 01-01-2012.

NOTIFICATION

PART – A

FOR DESPATCHES BY REGISTERED DEALERS AS A RESULT OF SALE

1.	Every dealer registered under the Act who dispatches any of the following goods:
	1.	All kinds of Electrical goods including appliances
	2.	All kinds Automobiles and parts and accessories thereof
	3.	All kinds of Furniture
	4.	All kinds of Hardware excluding Computer Hardware
	5.	All kinds of Paper
	6.	All sizes of Cement Concrete Blocks and Cement Bricks
	7.	Arecanut
	8.	Cardamom
	9.	Cashew
	10.	Coffee seeds
	11.	Cotton
	12.	Edible oil including Vanaspathi
	13.	Flooring / Wall tiles of all kinds
	14.	Glass in all forms
	15.	Granite/Marble blocks, slabs and tiles
	16.	Gutka, Khaini, Cigarettes, Zarda, All kinds of Tobacco other than Raw Tobacco, Pan Masala, Pan Chatnis, Scented Snuffs and Kheemam
	17.	Iron and Steel as described in item iv of Section 14 of the CST Act, 1956
	18.	Oil Seeds including coconut and copra
	19.	Ores of all kinds
	20.	Paints
	21.	Pepper
	22.	Plastic Granules of every description
	23.	Plywood, Veneer, Boards including flooring boards and laminated sheets
	24.	Ready Concrete Mixture
	25.	Rubber
	26.	Sanitary fittings of every description
	27.	Scrap of ferrous and non-ferrous metals
	28.	Timber including Eucalyptus and Casurina

as a result of sale, whose sale value exceeds twenty thousand rupees shall enter the details of such goods in the format appearing in one of the departmental websites namely: http://vat.kar.nic.in/, http://sugam.kar.nic.in, http://sugam2.kar.nic.in, before the movement of goods commences. A photocopy of tax invoice shall be carried in addition to entering the details in the departmental website and where the goods covered by a single invoice are carried in more than one goods vehicle. Further, if a single invoice has more than one commodity, in addition to entering the details in the website, the invoice shall accompany the goods vehicle. The following details shall be uploaded onto the website:

	1.	TIN of the consignor
	2.	Name and address of the Consignor
	3.	TIN of the consignee
	4.	Name and address of the consignee
	5.	Place from where goods are consigned
	6.	Place to which goods are consigned
	7.	Invoice, Delivery Challan, Gate Pass, Declaration or the like.
	8.	Date of invoice or date of any of the above mentioned documents
	9.	Description of goods
	10.	Quantity of goods
	11.	Value of goods
	12.	Date of despatch

Further, the following details may also be uploaded:-

	1	Goods vehicle number
	2	LR number
	3	LR Date

2.	The dealers dispatching goods other than those mentioned in Para-1 above may also upload information in the abovementioned manner so as to facilitate expeditious clearance at the check posts.

PART – B

FOR TRANSPORTATION NOT AS A RESULT OF SALE

Every dealer registered under the Act who transports any taxable goods not as a result of sale shall enter the details of the goods being transported in goods vehicle the format appearing in one of the departmental websites namely: http://vat.kar.nic.in/,
http://sugam.kar.nic.in, http://sugam2.kar.nic.in/. Such entry shall be made before the movement of goods commences.
The following details shall be uploaded on the website:

	1	TIN of the consignor
	2	Name and address of the Consignor
	3	TIN of the consignee
	4	Name and address of the consignee
	5	Place from where goods are consigned
	6	Place to which goods are consigned
	7	Purpose of Transport
	8	Sl. No. of Stock Transfer/Branch Transfer Memo/Gate pass/Delivery Challan or the like.
	9	Date of the documents mentioned above
	10	Description of goods
	11	Quantity of goods
	12	Value of goods
	13	Date of despatch

Further, the following details may also be uploaded:

	1	Goods vehicle number
	2	L.R. number
	3	L.R. Date

4.	Such transportation of goods shall include transportation wherein the buyer has taken possession of goods after purchase and is transporting the same to self. If the seller is an unregistered dealer then the dealer purchasing the goods should enter details as both consignor and consignee.

PART – C

FOR RECEIPT OF GOODS FROM PLACES OUTSIDE THE STATE

1.	Every dealer registered under the Act who receives (as a result of purchase or otherwise and which includes import from outside the country) the following goods from outside the State:
	1	All kinds of Automobile parts and accessories thereof
	2	All kinds of Electrical goods and Appliances
	3	All kinds of Furniture
	4	All kinds of Hardware excluding Computer Hardware
	5	All kinds of Paper
	6	All sizes of Cement Concrete Blocks and Cement Bricks
	7	Cement
	8	Dry Fruits
	9	Edible oil including Vanaspathi
	10	Flooring/Wall tiles of all kinds
	11	Glass in all forms
	12	Granite / Marble blocks, slabs and tiles
	13	Gutka, Khaini, Cigarettes, Zarda, All kinds of Tobacco other than Raw Tobacco, Pan Masala, Pan Chatnis, Scented Snuffs and Kheemam
	14	Iron and Steel as described in item iv of Section 14 of the CST Act, 1956
	15	Machinery of all kinds, parts and accessories thereof
	16	Ores of all kinds
	17	Paints
	18	Plastic Granules of every description
	19	Plywood, Veneers, Boards including flooring boards and laminated sheets
	20	Ready Concrete Mixture.
	21	Sanitary fittings of every description.
	22	Timber including Eucalyptus and Casurina

shall enter the following details of the goods being received in the format appearing in one of the departmental websites namely: http://vat.kar.nic.in/. http://sugam.kar.nic.in, http://sugam2.kar.nic.in/ before the goods vehicle enters the State;-

	1	TIN of the consignor
	2	Name and address of the Consignor
	3	TIN of the consignee
	4	Name and address of the consignee
	5	Place from where goods are consigned
	6	Place to which goods are consigned
	7	Invoice Number (issued by seller) if movement is as a result of purchase
	8	Serial number any other document if received otherwise than by way of purchase
	9	Date of invoice/document
	10	Description of goods
	11	Quantity of goods
	12	Value of goods
	13	Probable date of receipt

Further, the following details may also be uploaded;-

1	Goods vehicle number
2	LR number
3	LR Date

6.	The dealers receiving other goods may also upload information in the aforesaid manner so as to facilitate expeditious clearance at the check posts.

PART - D

FOR MOVEMENT OF GOODS WITHIN A REVENUE DISTRICT LIMITS FOR JOB WORK

(a)

The dealers who are transporting any taxable goods from their place of business to any other place within the limits of a revenue district for the purposes of job-work of all kinds, shall enter the following details of the goods in the format appearing in one of the departmental websites namely: http://vat.kar.nic.in/. http:// sugam.kar.nic.in, http://sugam2.kar.nic.in/ before the movement of goods commences.

	1	TIN of the consignor
	2	Name and address of the Consignor
	3	TIN of the consignee (If registered dealer)
	4	Name and address of the consignee
	5	Place from where goods are consigned
	6	Place to which goods are consigned
	7	Purpose of Transport
	8	Sl. No. of Delivery Challan or the like.
	9	Date of the documents mentioned above
	10	Description of goods
	11	Quantity of goods
	12	Value of goods
	13	Date of despatch

Further, the following details may also be uploaded;-

1	Goods vehicle number
2	LR number
3	LR Date

(b) Any further movement of goods coming under clause (a) above shall be supported by the labour charges bill or self printed delivery challan or Form VAT-515 issued by the dealer or person who has carried on job work for the registered dealer and such document shall contain the unique number relating to the e-SUGAM .

PART-E

FOR MOVEMENT OF GOODS WITHIN A REVENUE DISTRICT LIMITS

FOR THE PURPOSES OTHER THAN AS A RESULT OF SALE OR JOB WORK

The dealers who are transporting any taxable goods from their place of business to any other place within the limits of a revenue district other than as a result of sale or job work but for the purposes like weighment; line sale; transfer to or from depot, godown (warehouse), branch, head office; shall use slef- printed delivery notes in Form VAT 515.

PART-F

PROCEDURE TO ENTER THE INFORMATION IN PARTS A, B, C AND
D OF THE NOTIFICATION IN ‘e-SUGAM’

9.	For making entries in the format given above, the following procedure may be followed:
	i)	Every such dealer shall log onto any one of the following three websites:(1) http://vat.kar.nic.in/ (2) http://sugam.kar.nic.in, (3) http://sugam2.kar.nic.in
	ii)	Every such dealer shall obtain his user name and password from the jurisdictional LVO or VSO, if it is not already communicated to him by the LVO or VSO for logging on to the departmental website for making entries in Part A, B, C, and D, the dealer is required to chose the appropriate field as appearing in the common format by clicking the corresponding options.
	iii)	Using the user name and password communicated to him/her by the jurisdictional Local VAT Officer (LVO) or VAT sub Officer (VSO) he shall proceed to make entries with the help of the instructions contained in the website in Part A, B, C, and D , of the notification, the dealer is required to choose the appropriate filed as appearing in the common format by clicking the corresponding options. The dealer can choose appropriate box in the common module 'e-SUGAM' for all types of entries in part "A". "B", "C", or "D" as the case may be of the Notification.
	iv)	After submission of the requisite information, the computer would generate and display a unique number. The dealer should note down this number on paper in a clear and legible manner. There would also be a facility to take a print from the computer and this print will have all the details uploaded by the dealer along with the 'unique number'. The person in charge of the goods vehicle shall produce the unique number to the check post officer or any other officer who intercepts the goods vehicle enroute in the State. In case, the dealer is unable to generate such unique number in the place of loading of goods, due to non availability of internet or computer facility he may still log on to the notified websites, at a place where such internet or computer facility is available and upload the required details and then obtain the unique number.
	v)	Every such dealer shall view the report of all such entries made and unique numbers generated by him during every week for which a facility is provided on the websites to ensure the correctness of the entries and also to ensure that the facility of entry of transactions made by him is not misused by any unauthorized person. In case a dealer finds that any entry of transactions recorded in his account is not entered by him, he should immediately change his password and if for any reason he is unable to change the password he should report this fact to the jurisdictional LVO or VSO in writing. Further, such dealer shall also inform the jurisdictional LVO or VSO within three days from the date of entry of such transaction which he claims to be not made by him;
	vi)	The dealer should keep the pass word in proper custody. The dealers are advised to change the password at regular intervals.
	vii)	In order to ensure that there are no instances of misuses of the facility of ‘e-SUGAM’, it is prescribed that the ‘e-SUGAM’ once uploaded shall be valid for the following durations;

1)	If the distance from the origin of the goods to the destination is less than 100 KMs	- validity period is 2 days from the day of uploading
2)	If the distance from the origin of the goods to the destination is between 100 KMs and 500 KMs	- validity period is 3 days from the day of uploading
3)	If the distance from the origin of the goods to the destination is above 500 KMs and 1000 KMs	- validity period is 5 days from the day of uploading
4)	If the distance from the origin of the goods to the destination is above 1000 KMs	- validity period is 10 days from the day of uploading
	The day will be reckoned as 24 hours from the time of uploading.

10.

Instances of non-compliance of this Notification or entering of wrong data would invite penalties under sub-section (12) of Section 53 of the Karnataka Value Added Tax Act, 2003(Karnataka Act No. 32 of 2004).

PART-G

ADDITIONAL FACILITIES IN THE ‘e-SUGAM’ AVAILABLE IF UPLOADED THROUGH INTERNET VIA COMPUTER

1.	Multiple ‘username’ and ‘password’:
	If the dealer has more than one place of business and requires more than one ‘password’, he shall apply to the jurisdictional LVO/VSO. The jurisdictional LVO/VSO will forward the request to Head Quarters who would then issue required number of ‘passwords’ as requested by the dealer.
2.	Uploading of details of multiple commodities specified in a single invoice:
	If there are more than one commodity in an invoice, the dealer may specify the consolidated value of all such commodities and the description of commodities may be entered in the box provided in the entry form.
3.	Entering multiple invoices relating to the same consignor/consignee:
	If there are goods covered by multiple invoices relating to the same consignor/consignee being transported in the same goods vehicle, the dealer may upload the total value and quantity of goods covered by all such invoices. The invoice number of each and such invoices should be mentioned in the additional column provided.

PART-H

PROCEDURE TO ENTER THE INFORMATION IN ‘e-SUGAM’ FOR
PURPOSES OF PART-A, B, C AND D OF THE NOTIFICATION

For dealers who do not have the facility of computer, a new system called ‘m-SUGAM’ is developed and is put in place for enabling the dealers to upload the details of goods to be transported into the department’s website through their own mobile phones. ‘m-SUGAM’ is a new method for getting the ‘e-SUGAM’ number for arrival and movement of goods through SMS from their own mobile phone number. For using the ‘m-SUGAM’ service, the dealer has to write to the LVO/VSO concerned using his existing user-name & password and register two mobile numbers for ‘e-SUGAM’.

a)	For uploading the information in ‘m-SUGAM’ the dealer in the first place has to login to one of the department’s website namely http://vat.kar.nic.in/ , http:// sugam.kar.nic.in, (3) http://sugam2.kar.nic.in/ and register the commodities dealing in for the purposes of availing of the ‘e-SUGAM’ facility, using the option ‘Reports and Help’ ‘Add ‘e-SUGAM’ commodities’ and then select the commodities which he/she would be transporting, for ‘m-SUGAM’ purpose and save the same. He has to note down the commodity codes corresponding to the commodity added/saved and then mention the relevant commodity code numbers in the ‘m-SUGAM’ for the purpose of sending the SMS for generation ‘m-SUGAM’ number.
b)	There are six parameters used for sending the information through SMS to a designated mobile telephone No. 9212357123or 9243355223. Once the information sent reaches the department’s server, the system will validate the details of information and generates ‘m-SUGAM’ number and return it back to the sender for being used by the sender for enabling its use during movement of goods. The number so generated may be passed on to the transporter for issuing it at the check-post or at the point of interception of the goods vehicle by the officers of the department. The SMS format for sending the information of the details of goods to be transported for getting the ‘m-SUGAM’ number generated is as under:
	KSR [Space](Write Type of Transaction) [Space] (Write Type of Category of Transaction) [Space] OTHER PARTY TIN [Space] INVOICE NUMBER [Space] INVOICE VALUE [Space] COMMODITY CODE [Space] OTHER PARTY LOCATION
	The system will carry out the following validations before processing the request. In case of failure of validation, the system sends the appropriate error message to the mobile number:
	1.	It will validate the mobile number linked to the trader’s TIN before accepting the request.
	2.	It will validate the correct key word – KSR for Karnataka ‘e-SUGAM’.
	3.	It will validate the correctness of codes for WS/IS/IM/EX and for TYPE_SAL/PU/THP/SGS/JRL/STR/STD/CSR/CSD/OTH.
	4.	It will verify the TIN of the local registered dealer of Karnataka wherever the TIN is entered.
	5.	It will validate the COMM_CODE against the commodity registered by the dealer for SUGAM purposes.
c)	The following table gives the parameters with explanation and acceptable values:

Sl No.	Parameter Name	Description	Acceptable Value
1	Type of Transaction	Indicates whether the transaction is within the State or outside the State	WS-Within State IS – Inter-State EX-Export IM – Import
2	Category of Transaction	Indicates type of transaction being carried out	SAL – After Sale PUR – After Purchase THP – To His Principal SGS- To Shop/Godown JRL- Job Work/Return/Line Sales CSD-Consignment Sale (Despatch) CSR-Consignment (Receipt) STD-Stock Transfer (Despatch) STR –Stock (Receipt) OTH –Others
3	Other_Party_TIN	Indicates the TIN of the other Party	C-Consumer/Un-regd. Dealer TIN – 11 digits TIN of the Reg. Dlr.
4	Invoice Number	Indicates the document/ invoice number of the transaction	10 Characters of ALPHA NUMERIC value. Special characters not allowed
5	Invoice Value	Indicates the value of the invoice / document/ goods	10 Digits numeric values
6	Code Number of the Commodity	Indicates the commodity code of commodities registered by the dealer in the department’s Website	5 Digits numeric values
7	Other Party Location	Indicates the place where the goods are moved to in case of sale/dispatch or place from where the goods are moved from in case of sale/ dispatch or place from where the goods are moved from in case of purchase/ receipt.	25 Characters