Post on 10-Apr-2018
transcript
Brush up of VATTax
on the value added
Consumption Tax
No cascading
, hence beneficial
Easy to admini
ster
Types of Sale in VAT
Local Sale - Sales made within the State at different VAT Rate as per the rate mentioned First Schedule.
CST Sale - Sales made outside the State at different rate as per provisions of CST.
Zero Rated Sale – Sales made to SEZ and UN. High Sea Sale – Goods are to be imported before
which the transfer of document to title is handed over.
Export – Sale of Goods to Foreign Country & Penultimate Sale.
Compounding Scheme Works contract (2% or 5%)
Hotel, Restaurant and sweet stalls (Turnover lesser than Rs. 50 Lacs)
Purchase – within state, Sale – within state – ½% (Turnover lesser than 50 Lacs)
VAT Audit – An Overview How? – Vouching the sales and purchases
ledger to check the tax rates and confirm liability.
When? – Before 9 months from the completion of the Financial Year
VAT Audit – U/s.63A of TNVAT Why? - If total turnover of the assesse
exceeds Rs. 1 Crore in a year.
Who? – By a Accountant (CMA/CA)
What? – A report submitted mentioning the total sales and purchases along with the taxes paid at various rates, in prescribed format.
Audit Procedure
• Recording of Transactions
• Payment of VAT Liability
Books of Accounts
• Disclosure of Purchases and Sales
• Disclosure of VAT Liability and Payment
Return
• Verification of Books
• Verification of Return
• Reporting
VAT Audit Format
Annexure Disclosure Annex I
Annex IA
Annex II Annex III Annex IV Annex V Form J Form K
All types of purchases Inter state purchases and
transfers All types of Sales Reversal of ITC Import and Export Excess of ITC to be carried forward Ineligible ITC Details Small Dealers (10 Lakhs- 50
Lakhs) and no interstate transactions
Preparing the Report PART A – Details of books of accounts
maintained and verified PART B – Turnover, Purchase, ITC
Reversal, Inter state sales, Input on capital goods, Delay in filing if any, Stock details and ratio analysis are to be disclosed.
Part A + Part B = What you audit !!
In a Crux
Reconciliation of Purchase & Sales
Computation of VAT & CST Liability
ITC Reversal
Payment of VAT & CST
Filing of Return
As a VAT Auditor Match the payable with the actual
payments Check the various rates of taxes applied Verify the returns/forms filed Disclose the Audit done in Form WW Preserve such workings
Beware of these! Improper disclosures in Forms Rate difference Wrong classifications Delayed or Non –Filing
Points to Ponder?1) Reversal of Input Tax Credit on CST Sale – With Form C or Without Form C?
2) Reversal of Input Tax Credit on Stock Transfer?
3) Periodicity of Reversal Quarterly or Monthly?
4) ITC Reversal on Exempted Sale?
5) Sale of Goods to 100%EOU – Outside the State?
Points to Ponder?6) Sale of Goods less than Purchase Price?
7) Construction Company – Method of Valuation?
8) ITC to be reversed on Free Issues?
9) Zero Rated Sale Vs Exempted Goods?
10) Purchase of Goods from URD?
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B.Ganesh PrabhuMobile: +91 98404 71139E- Mail : ganeshprabhu.b@gmail.com
Thank You…