What is criteria for VAT Audit, Maharashtra

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Rajnish (Querist)
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29 December 2009 Dear All,

What is criteria for VAT audit in
maharashtra.

OUR Nature of Business as below,
- 100% export
- Not collect any VAT amount client.

then VAT audit applicable for us.

Please guide me.

Regards
Rajnish

Vikas Kodmoor

Vikas Kodmoor (Expert)
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29 December 2009 Plz specify the goods (Tax free/ Taxable)
Sold under Form H' ???

Rajnish

Rajnish (Querist)
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29 December 2009 We are developing software and Export.
It's tax free under STPI Scheme.
Not sold under Form H.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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03 August 2025 Hi Rajnish,

Regarding the criteria for VAT audit in Maharashtra as of 2009 (and generally applicable for VAT regimes), here are some points based on your situation:

1. VAT Audit Applicability Criteria:
In Maharashtra, typically, VAT audit is applicable if your turnover exceeds the prescribed limit during the financial year.

The turnover limit for VAT audit usually depends on the state government notifications or rules. As of around 2009, the threshold could be something like Rs. 5 lakh or Rs. 10 lakh, but this varies by year and state amendments.

If your turnover is below the threshold, usually no VAT audit is required.

2. Your Business Nature:
You mentioned 100% export business.

You do not collect VAT from clients.

Your software exports are under STPI Scheme (Software Technology Parks of India), which is typically tax-free under Maharashtra VAT.

Since your goods/services are tax-free and exported, no VAT is charged or collected.

3. Form H & Export Sales:
Form H is used for claiming VAT exemption on interstate sales of goods.

Since you are exporting software (which is a service and under STPI export), and not selling under Form H, the question of Form H doesn’t arise here.

Export of software services is generally zero-rated or exempt under VAT laws.

4. Is VAT audit applicable for you?
If you are not charging VAT and your sales are 100% export under STPI Scheme (tax-free), then the VAT audit may not be applicable.

However, if you have any local sales or taxable supplies, and turnover exceeds audit limits, VAT audit applies.

It's always advisable to confirm your turnover figures and check the latest Maharashtra VAT audit rules or consult your tax advisor.

Summary:
If your turnover is below the threshold, VAT audit is not mandatory.

Since your business is 100% export under STPI (tax-free) and no VAT collected, generally, VAT audit would not apply.

Confirm turnover and any taxable supplies to be sure.

If you want, I can help you find the latest notification or exact turnover limit for Maharashtra VAT audit for that year or current year. Just let me know!

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