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Applicability of vat audit

Mahavat 910 views 1 replies

Meena sharma

Article trainee

48 Points Posted on 01 December 2012

One of the Manufacturer has a Total turnover of Sales for FY 2011-12 of Rs. 1Cr. out of these, 14 lakhs is sale of taxable goods and balance 86 lakhs is sale of labour and other service charges.

My Queries are:

1) IS VAT Audit applicable to him for the FY 2011-12??

2) If he Purchases a machinery paying VAT @ 12.5%, will he be eligible for entire setoff or there will be some reduction in the same[consider Rule 53(6) ].

Thanks in Advance.

Replies (1)

Guest

HELLO MEENA SHARMA,

TAX PAID ON CAPITAL GOODS: VAT LEGISLATIONS GENERALLY PROVIDE FOR AVAILING OF INPUT TAX CREDIT ON CAPITAL GOODS ONLY WHERE SUCH GOODS ARE USED IN THE MANUFACTURING OR PROCESSING OF GOODS.

EXTERNAL AUDIT: APART FROM DEPARTMENTAL AUDIT MANY STATES HAVE ALSO INCORPORATED THE CONCEPT OF AUDIT BY CHARETERED ACCOUNTANTS. A CERTAIN PERCENTAGE OF THE DEALERS WILL BE TAKEN UP FOR THE AUDIT IN ACCORDANCE WITH CRITERIA OF SIZE OF DEALERS ACCORDING TO THE RESPECTIVE STATE LAWS.

NOTE: JUST U CAN CHECK YOURS RESPECTIVE STATE VAT LAWS WHETHER VAT AUDIT APPLICABLE OR NOT.

INTERNAL AUDIT IS NOTHING BUT ITS DEPARTMENTAL AUDIT, AUTHORISED OFFICERS OF DEPARMENT WILL VISIT THE BUSINESS PLACE OF THE DEALER TO CONDUCT OF AN AUDIT.