Vat audit applicable

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2014 Hi my question is I am having trading company in mumbai whose business turnover is less then 60 lakhs,and profit margin is less then 7% is liable for vat audit?
Is profit margin is also a criteria for Vat audit compulsion.

Manish Sharma

Manish Sharma (Expert)
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30 May 2014 Hi,

Section 61 of Maharashtra Value Added Tax Act, 2002 deals with cases where accounts to be audited.

As per section 61 the primary criteria for getting the accounts audited is where the turnover of purchase and sales exceeds INR 60 lacs in a year. Apart from the turnover criteria there are other requirement also but nowhere it has been mentioned that profit margins is a criteria for getting the VAT Audit done.

Considering the aforesaid scenario, I understand that your company is not required for getting the VAT Audit done.

You are also requested to see section 61 of the Maharashtra Value Added Tax Act, 2002 and see if your company fits into other requirement of audit

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2014 Hi, Is trading in F& O, F & O turnover liable for Vat audit and consider as a business Income