Dear All,
The procedure for obtaining new registration under the MVAT Act was amended vide circular 5T of 2015. For a gist of the new procedure please visit the below link.
/articles/new-procedure-for-registration-under-mvat-23825.asp
The department has issued certain instructions / guidelines on the processing and disposing off of the applications vide circular no 13T of 2015 dated 14th August 2015. A summary of the guidelines are as under. I have underlined the safeguards / to dos on part of the applicant.
1. Verification of the Application
The registration officer (RO) is required to verify the application along with all the uploaded documents. The RO shall verify whether the application is complete in all respects. Further whether the documents uploaded are legible and are as per the requirements. Please refer trade circular 5T and 7T for the list of documents prescribed.
The list of documents has provided in the above referred circulars has been amended / relaxed to some extent as follows.
a. The applicant can upload bank receipts and bank statements as a proof of payment of fees and deposit instead of the challans.
b. The applicant can upload copies of unregistered agreements as address proof. Earlier it was mandatory to upload copies of registered agreements.
2. The RO is mandatorily required to visit and verify the business premises of the applicant in the following cases
a. The PAN of the applicant relates to suspicious dealers as declared by the department
b. The applicant deals in commodities which are declared as risky commodities (The list of risky commodities is yet to be declared)
3. Rejection of the application
The application shall be rejected under the following situations:
a. The RO is unable to verify the identity of the applicant / business premises (as stated in point 2)
b. The application is incomplete or inaccurate
c. The documents uploaded are not legible or are incomplete or do not meet the requirements.
The RO shall communicate the fact of rejection of application to the applicant via an e-mail on the e-mail if provided in application. The RO is also required to mention the reason for rejecting the application.
It is therefore very important that the details provided in the application form are accurate and that the form is completely filled. Especially the contact details (e-mail id, telephone) and the business address must be accurate and complete. This is essential as all the communications shall be made using the contact details provided. Also on approval by RO, the registration certificate shall be sent by speed post to the address provided.
Also the documents uploaded must be legible and as per the requirements laid down in circular 5T and 7T. Any discrepancy therein can lead to rejection of the application.
4. Approval of application
If the RO finds the application and all the uploaded documents in order then he shall approve the application and allot the TIN with in a day time.
Also in a case where the RO was required to visit the business premises (as per Point 2) and the verification was successful, the RO shall approve of the application and allot the TIN.
The approval of application shall be notified to the applicant via e-mail and the registration certificate shall be sent by speed post to the business address.
In case the certificate of registration returns undelivered then the following actions shall be taken by the department by visiting the business premises.
a. Verification of the identity of the applicant
b. Verification of the business address of the applicant
c. Verification of the bank details of the applicant
d. Obtain signatures of the applicant on the application form, declaration as required by annexure B to circular 7T and on the photograph of the applicant.
Based on the outcome of above verifications, the department shall decide whether registration should be granted and take appropriate action. i.e. either provide the registration certificate or cancel the registration.
It is essential that there is no misrepresentation on part of the applicant. In case the department finds out about any misrepresentation, the applicant shall be subjected to penal consequences and his registration may also be cancelled.
5. Time Limit for processing the application
The RO is required to process and dispose off the application (approve the application and grant the TIN, reject the application or decide to visit the business premises of the applicant, if required) within a period of one day. This time limit of one day is prescribed for the RO from the date the application is allotted to him. However there is no overall time limit / dead line prescribed on part of the department as a whole, for dealing and completely disposing off the application.
6. Vision / improvements / targets of the department with respect to the registration procedure
The department is in process of improvising the existing system so that the applications are not rejected for an issue / query with the uploaded documents. Currently if there is an error in the documents or the documents are illegible then the department shall reject the application. The department seeks to provide the applicants with a facility wherein the application shall not be rejected for want of documents. The applicants shall be allowed to replace / upload additional documents in their original application to meet the requirements.
Thanks & Regards
Yash Goyal
CAclubindia
