Vat audit procedure
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 December 2011
Dear expert i need vat audit detail procedure so please share some link
RAMESH KUMAR VERMA
(Expert)
24 December 2011
Assessment and Audit
i) Assessment
a) Under DVAT your return i.e. DVAT 16 if furnished within time and is correct and complete it has to be accepted by the department as self assessment.
b) If a dealer does not file proper return, it is submitted late or is incomplete or does not comply with the requirement of law, the department will make default assessment, compute net tax due and will send a notice in DVAT 24 determining tax payable.
c) Whereas under DVAT there is an assessment for every tax period assessment under Central Sales Tax will be made on annual basis on filing the annual reconciliation statement by 31st December every year. Though the return under C.S.T. has to be filed and tax has to be paid monthly or quarterly, the assessment will be made annually as stated above on submitting the annual reconciliation statement and statutory forms and the balance tax due is to be paid.
d) Refunds, if any, which the dealer will be entitled on the basis of his return, shall be issued to them electronically to their bank accounts within one month, unless they are withheld for specified reasons. Also in such cases before issued refund, the department may ask for necessary security.
ii) On a selective basis, the return will be scrutinized and a notice may be issued by the department in DVAT 37 for Audit.
iii) Besides the above audit, the department has also power to order a special audit by the Accountant or experts. Such audit is to be completed within 180 days of issuance of directions and the fees determined by the department, will be borne by the dealer.
iv) The dealer whose turnover is above Rs. 40 lacs shall also be liable to submit Audit Report obtained by them under Sec. 44AB of the Income Tax Act.
10. The above are provisions which are likely to be noted by the dealers immediately on enforcement of DVAT. There are other provisions such as filing of objections, appeals to the Tribunal, determination of disputed questions, penalties and appeals to High Court and provisions for check post and for documents to be submitted for exporting goods outside Delhi and for importing goods into Delhi which are not being discussed in this paper and shall be dealt subsequently.
for more info:
https://www.auditnet.org/docs/VAT.pdf
i) Assessment
a) Under DVAT your return i.e. DVAT 16 if furnished within time and is correct and complete it has to be accepted by the department as self assessment.
b) If a dealer does not file proper return, it is submitted late or is incomplete or does not comply with the requirement of law, the department will make default assessment, compute net tax due and will send a notice in DVAT 24 determining tax payable.
c) Whereas under DVAT there is an assessment for every tax period assessment under Central Sales Tax will be made on annual basis on filing the annual reconciliation statement by 31st December every year. Though the return under C.S.T. has to be filed and tax has to be paid monthly or quarterly, the assessment will be made annually as stated above on submitting the annual reconciliation statement and statutory forms and the balance tax due is to be paid.
d) Refunds, if any, which the dealer will be entitled on the basis of his return, shall be issued to them electronically to their bank accounts within one month, unless they are withheld for specified reasons. Also in such cases before issued refund, the department may ask for necessary security.
ii) On a selective basis, the return will be scrutinized and a notice may be issued by the department in DVAT 37 for Audit.
iii) Besides the above audit, the department has also power to order a special audit by the Accountant or experts. Such audit is to be completed within 180 days of issuance of directions and the fees determined by the department, will be borne by the dealer.
iv) The dealer whose turnover is above Rs. 40 lacs shall also be liable to submit Audit Report obtained by them under Sec. 44AB of the Income Tax Act.
10. The above are provisions which are likely to be noted by the dealers immediately on enforcement of DVAT. There are other provisions such as filing of objections, appeals to the Tribunal, determination of disputed questions, penalties and appeals to High Court and provisions for check post and for documents to be submitted for exporting goods outside Delhi and for importing goods into Delhi which are not being discussed in this paper and shall be dealt subsequently.
for more info:
https://www.auditnet.org/docs/VAT.pdf
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