GOVERNMENT OF INDIA

MINISTRY OF COMMERCE & INDUSTRY

MEPZ-SPECIAL ECONOMIC ZONE

 

 

F.No.              

 

 

To

 

     All EOU’s Under MEPZ SEZ,

 

 

Sir,

 

                           Sub: General guidelines for submission of applications for CST

                                   Reimbursement – Regarding.

                                                             *********

 

 

                          It has been noticed that while submission of CST reimbursement claims certain common deficiencies are noticed in the claims.  Hence, certain general guidelines/that are to be followed while submission of claims are sent herewith for information/strict compliance.

 

                            

                                                                                                                 Yours faithfully,

 

                         sd/-

                                                                                                        (N.JAYAPRAKASH)

                                                                                      SENIOR ACCOUNTS OFFICER

                                                                

 1.     QUARTERELY BASIS:

 

(i). The CST  reimbursement claim is to be made only on Quarterly basis (JAN-MARCH, APR-JUNE, JULY-SEP, OCT-DEC) and only one consolidated claim for a Quarter is admitted for reimbursement of CST. No supplementary claim is entertained, CST claim for the amount below Rs.100/- of any single invoice is not admissible.

 

(ii). The date of receipt of materials/goods is the criteria for determination of the Quarter.  In case of procurement of goods against payment in instalments, the CST reimbursement claim may be made in the quarter in which full payment has been affected against the invoice/bill,(e.g.) goods received on 15.1.2005 and entered in MRR NO.200 dt: 15.1.2005 for invoice value of Rs.2,08,000/= first payment made on 20.3.05 for Rs.1,04,000/= and if the second & final payment made on 20.5.05. This particular claim would pertain to the Quarter related to Apr-Jun and not Jan-March though goods were received in Jan 2005.

                                                        

(iii). If one single payment has been made against the invoice in the subsequent quarter but the goods received in the earlier quarter, it should be taken against the quarter in which the goods have been received (e.g.) goods received on 15.1.2005 are taken in MRR NO.200 dt:15.1.2005 but payment of the invoice made on 20.4.05, the claim pertains to the Quarter related JAN-MARCH and NOT APR-JUNE.

 

2.     DUE DATE:

 

 

(i). No claim for reimbursement is entertained if not claimed within a period of six months from the completion of the quarter in which the claim has arisen. (e.g.) Goods received during JAN-MARCH relates to the quarter Of JAN-MARCH.  It can be claimed within six month period i.e 30th of Sep.

                                                           

(ii). Delayed cases after the completion of six months (in exceptional cases) i.e. claims received after the expiry of the last date for submission but within six months from the last date a late cut @ 10% will be imposed on the entitlement after satisfying that the delay was due to genuine grounds (e.g.) Claim relates to the Quarter Jan-March but submitted after the last date of Sep but submitted before 31st March of the subsequent year a late cut @ 10% will be imposed. The claims received beyond the extended period will be summarily rejected. It may please be ensured that the date of receipt of claim in this office is the date of receipt of claim and not the date of letter of the application.

 

3.    C.A. TABLE:  This table is to be  attached to Annexure II ( With CA’s certificate)              

Containing 12 columns.

 

(i). Sub totals are to be made for Col(V)-Invoice value accepted for each supplier       

      wise.

      Col Vii}. CST amount paid for each supplier

      Col X}. Cheque/DD amount paid for each supplier.

 

(ii). Enter actual cheque/DD amount with No. & Date.  If the cheque is for a number of invoices, indicate the actual amount of cheque/DD involving payment of the invoices effected.  Do not indicate invoice value of different invoices against the cheque amount column for same cheque No, and do not show different value of cheque.                                                           

 

(iii). Claims are admissible only if payment are made through Bank Accounts maintained by EOU unit or DD emanated from its accounts.

 

(iv). Payment made in cash are not allowed. 

 

(v).LC/Voucher through Banking Account should show proof and authority of payment through Banking channel. The correct mode of payment should be indicated.

 

(vi). Full address of supplier against SlNo. (ii) with name of supplier should be indicated.

 

(vii). All the columns (i) to (xii) of CA table with sub totals against Col(V),(VII) and (X) may be  filled in correctly.

 

(viii). The receipt of goods during the particular Qr  (JAN-MARCH,APR-JUNE,JULY-SEP & OCT-DEC) may be correctly taken in the CA table and  the materials which has been received in the earlier Qr and or in the subsequent Qr which will be disallowed.

 

(ix). Do not enter the particulars of the goods which are received in are quarter but the payment made in the subsequent/another quarter.

 

(x). A consolidate CA table with all suppliers particulars and receipt of goods during the quarter may be prepared. Do not prepare CA Table separately for each supplier.

   

      (xi). The CA firm should be a partnership chartered Accountant firm and should have at least one full time partner who should be an FCA.

                                       

(xii). CA certificate and Table from an individual CA cannot be accepted.

 

4.     ‘C’ FORMS:  (i). Fill up the ‘C’ Form No against Col No(ix) of CA table.                                                              

(ii). The original counterfoil of ‘C’ Form along with the Xerox copy should accompany the CA table. The ‘C’ Form counterfoil original will be returned to the EOU after making suitable entries and Xerox copies of ‘C’forms will be retained in MEPZ.

 

(iii). Photo-stat copies of  counterfoil of ‘C’ Form with duplicate & triplicate part  of  ‘C’ Form should also be enclosed.

 

(iv). The invoice No Date & amount of the supplies should be entered in the ‘C’ Form or annexure to ‘C’ Form with the signature of authorized person.  The reimbursement will be limited to the payment of CST against ‘C’ Form only. It may be ensured that total invoice value including CST value is shown in the ‘C’ Form.

 

(v). Inform the name of the person/persons who are authorized by EOU to sign the ‘C’ Forms and furnish three copies of their specimen signature in the claim.

 

5.     RANDOM CHECK:

 

(i). The unit shall preserve for three years all the original documents viz original invoice/bill money receipt/bank statement for random/sample checking and produce the same as and when called for by the office of D.C.

 

(ii). In case some glaring error/irregularity is detected against any unit in claiming CST reimbursement action to recover the amount paid and levy penalty would be taken under FTDR Act against such unit.                                      

 

 6.     REGISTRATION WITH SALES TAX AUTHORITIES:

(i). The reimbursement of CST is admissible only to those units who get themselves registered with Sales Tax authorities in terms of Section 7 of CST Act 1956 read with rules 1957.                                                   

                                              

(ii). Furnish Photostat copy of the Registration certificate issued by the Sales Tax Authorities concerned for keeping it in the relevant file.

 

7.      ADVANCE STAMPED RECEIPT:

 

(i). The unit shall produce Advance stamped receipt for the amount of CST claimed in their application in company’s letter pad duly signed over the Revenue Stamp by the authorized person of the EOU unit.

  

8.     GENERAL POINTS:

 

(i). Please ensure that all the mandatory documents are submitted.  If the mandatory documents such as original counterfoil of ‘C’ Forms and CA certificate and Table are not submitted the claim will be returned in original and the date of resubmission of the claim will be treated as fresh date of submission.

 

(ii). The enclosures may be arranged serially and pages may be numbered & to avoid missing of documents. The relevant documents may be arranged in the following order:

          (a). Check list.

          (b). Annexure I with undertaking and declaration duly signed by the authorized signatory of the applicant.

          (c). Annexure II (CA certificate) and CA Table with all the 12 columns duly filled in and duly signed by one of the partners of Partnership Firm.

          (d). Counterfoil of ‘C’ Form duly indicating the relevant invoice No. date and amount.

          (e). Copy of original part of ‘C’ Form. (Duplicate & Triplicate)

          (f).  Copy of CST Registration Certificate.

          (g). A copy of Board resolution of authorized person.                                           

          (h). Advance stamped receipt for the amount claimed.

 

(iii). If no reply is received to the deficiency letter issued by this office within one month from the date of issue of such letter, then the claim will either be restricted to the available documents or summarily rejected/closed.

 

 

9.                Please ensure that the following has been done before submissions of the application:

 

1. IT MAY BE ENSURED:

 

(i).  that CA certificate & Table may be got signed by FCA with Rubber Stamp of the CA firm.

 

(ii). that all the columns in CA Table dully filled in.

 

(iii). that the goods received during the particular Quarter only entered.

 

(iv). that Cheque No./DD No. & Date has been correctly filled in and does not show different amounts for same cheque No & Date.

 

(v). that the invoices for which cash & other kinds of payment not through Banking Account channel is made have not been added.

 

(vi). that All ‘C’ Form counterfoils in original &  Xerox, with duplicate & Triplicate part of ‘C’ Form in Photostat copies attached.

 

(vii). that the invoice No. Date & amount has been fully noted in ‘C’ Form or annexure to ‘C’ Form and signed by the authorized person.

 

(viii). that Application in Annexure I has been duly filled in and the signature of the authorized person signed before submission.

 

(ix). Copy of Letter of approval issued by MEPZ under EOU Scheme is enclosed.

 

(x). that the replies to this office letter indicates the reference no of this office.

 

2. In case, position of the application is to be known please indicate the period of claim and the date of submission of claim in MEPZ office.

 

3. While replying to the Deficiency letter, quote File No.25/                     and period of claim.

 

 

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GOVERNMENT OF INDIA

MINISTRY OF COMMERCE & INDUSTRY

DEPARTMENT OF COMMERCE

MADRAS EXPORT PROCESSING ZONE

                                                                                                            Admin Office Building,

                                                                                       Tambaram, Chennai-45.

F.no./CST/Misc./2002-03/So(A)

 

 

To

 

 

All EOUs/EPZ units under MEPZ

 

 

Subject :  Procedures to be followed while submitting CST reimbursement claims.

 

=============

 

                        As you may be aware, the procedures to be followed while submitting CST reimbursement claims have been defined in Appendix 14G of the HB of procedures.  However, it is enjoined upon all concerned that while submitting the claims for reimbursement of CST it may please be ensured that the following procedures are  scrupulously followed.

a)  The CST reimbursement claims are to be sumitted on quarterly basis only and the date of receipt of goods is the crucial factor for determining the period of claim.

b)  The claims are to be submitted within 6 months from the end of the quarter  in which the claim has arisen. However, according to the clarifications issued by the MOC, belated applications can be considered  depending upon the reasons for delay provided the applications are received within 6 months from the due date subject to imposing of 10% late cut.  Applications received beyond the 6 months period will not be accepted.

c)  It may be ensured that the CA certificate should be from a partnership firm in which one of the partner should be a full time and a FCA.

d)  The s.no. of MRR, date of receipt of goods, cheque/DD amount and Bank details should be shown clearly in th table attached to the CA's certificate.

e)  The claims applications should be submitted alongwith the check-list which is enclosed, duly indicating the page no. against each entry and signed by the authorised signatory.

 

 

 

CHECK LIST                                                               submitted/not submitted      If submitted, page no.                           

 

Text Box: :
 
 
 
:
 
 
:
 
 
 
:
 
 
:
 
                                                                                                 

1)  Application in the prescribed format                                          

     (Annexure-I of Appendix 14G of HB of

     Procedures)

 

 

2)  CA's Certificate in Annexure-II alongwith

      table of  Appendix  14G of HB of Procedures

 

 

3)  Advance Stamped Receipt                                                           

 

 

4)  Original Counterfoil of 'C' Forms                                                  

 

 

5)  Photocopy of Original and duplicate part

      of 'C' forms                                                                                          

   

 

 

                                                                                                            Signature :-