An Internal Circular Number 35A of 2019 with the subject, ‘ Verification of TRAN-1 Credits ’ was issued by the Commissioner of Sales Tax on October 19th, 2019 in response to the queries raised by the taxpayers on the previously released guidelines given to the departmental officials for verification of TRAN-1 credit.
The Internal Circular lays situation wise guidelines on the following subjects which the Nodal Authorities have come across during the verification process:
- Credit as per revised return under MVAT: The Department has clarified with respect to the errors committed by the wrong usage of words implying a different meaning and hence leading to a denial of credit, and others
- Verification of CST declarations with respect to the (A) periods for which the same has to be done and (B) that credit claimed in TRAN-1 u/s 140(1) supported by valid CST declarations should only be allowed.
- Verification of MVAT credits with respect to (A) Mismatch of VAT credit (B) Verification of MVAT credit, in respect of cases, allotted to central tax authorities
- TRAN-1 verification process
- The process includes issuance of DRC-01A & DRC-01, intimation to the dealers in Form DRC-03 and thereby issuance of the Form DRC-07 by the system.
- Interest u/s 50 on excess credit availed in TRAN-1 with respect to: (1) Interest on excess credit ‘availed’ and (2) Revised TRAN-1.
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