Gujarat vat audit

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Rajesh Tarpara (Querist)

26 November 2011 my question is regarding applicability of VAT Audit under Gujarat VAT Act.

-> My Dealer is Registered as Non Local Dealer (NLD) Under Guj.Vat Act, having business of Leasing of Cars.
means he lease car for rent in the state of Guj. and pay VAT on Lease portion and he also pay service tax on fleet managment charges.

-> there is no other sales and purchase includes only CARS. (All trasanctions are in GUJ.) my client

now my question is, whether VAT Audit is applicable or not under following situations:

1. Only purchase of cars exceeds Rs. 1 Crore and sales below 1 crore

2. Total sales exceeds Rs. 1.00 crore but taxable sales under VAT is below 1.00 crore

Shaleen Shah

Shaleen Shah (Expert)

30 November 2011 If in respect of any particular year, total turnover of the Dealer exceeds Rs.1 crore and taxable turnover crosses Rs.20 lacs, the Dealer is required to submit Audit Report under GVAT Act.

As defined under GVAT Act, "total turnover" means aggregate of the following transactions effected by a
dealer:
a. turnover of sales includes sales within the state, inter-state sales, exempted sales, exports, sales on behalf of principal
b. turnover of purchases includes purchases within the state whether taxable or exempt

Sales & Purchases includes that of Capital Goods / Fixed Assets, Works Contract, Leasing, Hire Purchase & other misc. eg. scrap sales.

Also refer to our updates on www.vnca.com

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