Vat audit

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nazneen k (Querist)
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09 November 2013 Sir In case of Proprietorship firm is not registered under MP VAT act and if its Turnover is more than 10 crore.Is it liable for VAT Audit and to submit VAT Audit Report To Sales Tax Department and if also The proprietorship is trading of Tax free goods Like- Onion Potato garlic and ginger.
Kindly give rply urgently

Santosh Kalburgi

Santosh Kalburgi (Expert)
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09 November 2013 Hello,

Firstly, there is a violation if not registered when a dealer is liable to pay tax as per MP VAT Act. Pls apply for VAT as soon as possible.
here is an abstract of the MP VAT Act.

CHAPTER IV
REGISTRATION OF DEALERS, AMENDMENT AND CANCELLATION OF REGISTRATION CERTIFICATES
25. Compulsory Registration of Dealers:- (1) No dealer shall, while being liable to pay tax, carry on business as a dealer unless he has been registered and possesses a certificate of registration:

Also pls check whether you are liable to pay VAT. VAT audit and VAT returns cannot be made until you are registered.

nazneen k

nazneen k (Querist)
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09 November 2013 ssir i m saying that he is dealing goods of tax free item yhen what and why to register ubder mp vat act

Santosh Kalburgi

Santosh Kalburgi (Expert)
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09 November 2013 Every dealer whose turnover during the twelve months immediately preceding the commencement of this Act exceeds the limit prescribed under sub-section (1) of Section 5 shall get himself registered in the prescribed manner within thirty days of the commencement of this Act.

Here it says turnover(inclusive of exempted and zero rated) as your turnover exceeds the limits, you need to get regitered and VAT audit is applicable.

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