Dear Sir, One of my client is running two businesses- a) transport sub contractor and 2) Wholesale distributor of telecommunication instruments. His total receipts from sub contracting during the year are approx 2 crores while those from telecom instruments trading is Rs. 7 Lacs Only. He is registered under MVAT Act, 2002 in respect of his trading business. Gross receipts being more than Rs. 40 lacs he is liable to tax audit. But, since his receipts from taxable business under MVAT Act are less than the threshold limit; is he liable to audit under MVAT Act.(Total individual business receipts more than 40 Lacs)? Please clarify.
if you are subcontractor for transport then your sales are below 40 lakhs & not liable to vat audit you are a sub contractor for buliding or any othere work & material is required for this work then you are liable to mvat audit