02 November 2015
Query relating to VAT AUDIT:- 1) Is the VAT Auditor duty bound to verify all VAT TIN Numbers of suppliers providing goods to his client & check their validity before taking set off of Input Credit ? 2) The VAT Auditor puts the following remarks in his reports :- (a) The Set-off is worked out only on the basis of Tax Invoices in respect of Purchases. (b) The Audit includes examining on a Test Basis, evidence Supporting the amounts & disclosure in Financial Statements. (c) The Tin Numbers of all customers / Suppliers could not be given. Please refer Dealer’s Certificate.
3) He also obtains a certificate from his client as worded below:- “THIS IS TO CONFIRM that we have furnished TIN numbers of our customers & suppliers to the VAT Auditors of our Unit. However, we could not provide all details either because the dealers were not liable to obtain VAT Registration or did not respond to our request or were unregistered dealers/end users.
Can the Auditor be held responsible if the clients's supplier has failed to pay the vat to the Govt ?
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