Pay sales tax e-way in Kerala

Effective September 1, the e-payment system has been made mandatory for all
registered VAT dealers by the Kerala state government. The latest step is in
tandem with the plans that the government had announced earlier in the year when
it had introduced the e-filing of monthly returns for all dealers in January.
According to the circular, traders who had the Tax Identification Number (TIN)
and a turnover of Rs 10 lakh or more annually are required to go in for
e-payment. This means that approximately 1.30 lakh traders are expected to
switch over to the e-payment system.

The new system will make it convenient for the traders to pay taxes and also
accelerate the tax collection process. The submission of e-returns would be
complete only if the monthly tax amount due has been paid through the e-payment
facility. It is noteworthy that only an online mode of payment is now accepted
by the Commercial Taxes Department.

The DQ Week also came to know that the department has refused to accept the
payment in the form of cheque from few dealers who went to the office directly
and has instructed them to make the payment and file the return online.

To avoid such instances Harikrishnan, President of All Kerala Computer
Manufacturers and Dealers Association, has advised the association members and
the dealers in IT fraternity to open the bank account well in advance as it
would take some time to avail the Internet facility.

To make it easier for traders to transact online the department has tied with
State Bank of India (SBI) and State Bank of Travancore (SBT) for the e-payment
facility. The user id and password would be issued by the bank to those who
possess an Internet banking account. Those dealers who already have an account
with SBI or SBT need not open a new account. The banks have also announced the
availability of zero balance.

The registered TIN dealers can log on to www.keralataxes.gov.in using the
user id and password obtained from the department, file their e-return using the
'file return' link on the home page. Sales statement can be uploaded using the
'upload sales invoice' link and purchase statement using the 'upload purchase
invoice' link. If the dealer is not liable to pay any tax, he can proceed by
clicking on the 'print return' link, select the return for the respective month,
check the 'I accept' check-box, and click on the 'submit' button to complete the
e-filing process.

However, the insistence of the commercial tax department on e-banking has not
been appreciated by some partners. The IT fraternity prefers the normal route is
which a cheque issued to the government for tax payment and is usually honored
after few days-say about two weeks or in some cases after a month. But, with the
new system in place, the money should be readily available with the trader for
making online payment.

Data Security, including that of the payment transaction, is ensured through
SSL certification. STQC, a Government of India agency, has audited and certified
the 'KVATIS' Web application. The application transfers the monthly tax amount
due directly from the dealer's account to the government account.