VAT Dealer and Department-Maharashtra Vat Audit

VAT Dealer and Department-Maharashtra Vat Audit

As the last date of submission of Maharashtra VAT Audit Report is 15th of January 2015.

VAT Audit applies to whom?

If the Annual Turnover is more than Rs. 2 Crore then the Taxpayer has to conduct VAT Audit compulsorily. This limit was Rs. 60 lakhs for Financial Year 2012-13,But from Financial Year 2013-14 limit was increased . It was applicable in case of liquor Dealer also that the limit was fixed to Rs. 2 crore for conducting VAT Audit. In Vat audit it is checked that the Returns are filed according to books of accounts.In case assessee declare profit less than 8% of total turnover the limit is still 1 crore.

What is most important thing in VAT Audit Report?

In VAT Audit the important is compliance of Law . In Annexure J1 the taxpayer has to mention customer wise annual sales, Similarly in Annexure J2 the taxpayer has to give details of supplier wise purchases, If this information is submitted wrongly then the VAT authorities will take of dealer and levy penalty and interest on the differential amount. The VAT authorities take away the dealer and collects Taxes without allowing setoff.In this the differences between J1 and J2 will be displayed from F.Y. 2014-15. This means it is most important to match Sales and Purchases. In this the Bogus and Hawala purchases come to notice. Due to mismatch of sales and purchase, it results into loss of set off to the purchasing dealer. Many businessmen’s take law in hand and then run in the difficulty in their hands.

What other care Taxpayer should take during Vat Audit?

Taxpayer should pay attention towards the following:

1) The Taxpayer should reconcile the sales and purchases given for Vat Audit with the Audited Balance Sheet.

2) Setoff should be availed only if purchases made in Maharashtra. CST Forms should be mentioned according to the Sales Invoice. It becomes difficult to collect Forms otherwise Tax has to be paid. If all this Information is not properly mentioned then the Dealer has to go to department again and again and has to pay tax and Interest.

3) Taxpayer should keep ready the information related to Tax, Challans and returns of VAT. Similarly all this things are essential for VAT Audit.

What if the Taxpayer has not filed the VAT Audit report on time?

VAT Audit report should be submitted before 15th January 2015 , if not then penalty amounting 1/10th of total Sales Turnover is required to be paid.

what should be done if the Taxpayer has filed original return but during the Audit differences occurs in the sales and purchase turnover?

If turnover and original returns not matched filed then taxpayer can file Revised Return under section 20(4) (a) according to its periodicity, otherwise taxpayer in VAT Audit Report may disclose the differences between Returns and Audit and then can file Annual Revised Return under section 20(4) (b).

What taxpayer should learn from this?

In Business Practices everyone should check the Tax compliance . Otherwise problem may have to be faced and Sales Tax Department will help or not is unpredictable. Sales Tax Department should protect the Taxpayer following Law and should punish the Law evader. But many times this may not happen, dealer may keep the said hopes with sales Tax Department and will say “Refund Dya Aani Premane Bola.”

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