22 August 2009
We would like to know how the rights of officer who is coming for business audit asking following questions:
(1) The Officer asked for vat audit report full and Balance Sheet including the tax audit report etc. should we give? Xerox copies of all this is suppose to be with him because we already filed with the dept. at the time of Vat audit report submitted.
(2) Can he ask for copy of Balance Sheets for subsequent years i.e.2006-07,2007-08 and 2008-09
(3) If C-Form have the CST No. but w.e.f. date not mentioned in C-Form now he is asking to get the copy of relevant Sales Tax Reg.No. Certificate of that party can he ask?
(4) Now officer is asking for list of Plant & machinery these machineries are very old and brought forward in to Balance Sheet every year after charging depreciation prior to this year all assessment completed we have also attached list of machinery now what is the object to give list of Plant & Machinery should we take out the list of plant & Machinery from very old record and also asking for original bills of those plant & machinery.
(5) The officer asking details of various Expenses, like Printing & stationery, Packing & Forwarding, Repairs & maintenance etc,.
(6) We are giving all the details but as a academically we would like to know.
24 August 2009
1. Yes, you need to give all the details asked for.The details filed will be your LVO, but the Officer do not belong to the VAT Office. Hence he will not be having copies of those filed at LVO. 2. Yes, he has got the right to ask and you are obliged to give. To see whether the same have been carried forward or if the same have been sold during the year. if so, then VAT on sales as scrap will be attarcted. 3. No, getting the details of your supplier is difficult. after improvement in the VAT computerisation, the Officer can know the detials of the supplier thru the system. 4. The Officer will be asking/ seeking details of P&M purchased during the year so as to see whether the Entry tax liability is to be discharged. 6. No the Officer is not concerned about the expenses incurred.
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