VAT AUDIT
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 February 2011
HELLO EVERYONE
Last year 1 of my client has sales above 40 lacks n we did vat audit. But this yr his t.o. is less than 40 lacks. is it compulsory for vat audit this year..
Plz rply Thanks in Adv.
Last year 1 of my client has sales above 40 lacks n we did vat audit. But this yr his t.o. is less than 40 lacks. is it compulsory for vat audit this year..
Plz rply Thanks in Adv.
14 February 2011
Please name the state in respect of which you are asking question on VAT. VAT laws are different in all states.
02 August 2025
For most states in India, **VAT audit is mandatory only if the turnover crosses the prescribed threshold in the current financial year**.
Since your client’s turnover this year is **less than 40 lakhs**, VAT audit **is generally not compulsory** for this year, **even if it was done last year** when turnover was higher.
However:
* The turnover limit for mandatory VAT audit **differs by state**. For example, in Maharashtra, the limit is often ₹1 crore; in Kerala, it can be ₹60 lakhs; in Karnataka ₹1 crore.
* Since you mentioned 40 lakhs, I assume you are referring to a state where the threshold is around that figure.
* If turnover is below the prescribed limit for the current year, VAT audit is **not mandatory**.
**In summary:**
**No VAT audit required this year if turnover is below the threshold applicable for your state.**
Since your client’s turnover this year is **less than 40 lakhs**, VAT audit **is generally not compulsory** for this year, **even if it was done last year** when turnover was higher.
However:
* The turnover limit for mandatory VAT audit **differs by state**. For example, in Maharashtra, the limit is often ₹1 crore; in Kerala, it can be ₹60 lakhs; in Karnataka ₹1 crore.
* Since you mentioned 40 lakhs, I assume you are referring to a state where the threshold is around that figure.
* If turnover is below the prescribed limit for the current year, VAT audit is **not mandatory**.
**In summary:**
**No VAT audit required this year if turnover is below the threshold applicable for your state.**
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