Audit

I am Auditing a co. ,they are doing a accounting mistake For eg.Quotation for vat purchase is selected @ of RS. 10 but bill is recieved @ RS.12 Due to some software problem of the other party and payment is made @ RS. 10 only ....

In recording the above ,Purchase A/c -DR Rs. 12,

                                          VAT A/C-DR ( @ on RS. 12),

                                                To Customer A/C-

THEN ,On the date of payment :- Customer A/C -DR Rs.12

                                                               To Bank A/c 10

                                                               To Rate difference A/c 2

Since by doing the above accounting they are wrongly recording the purchase ,i want them to clear there rate difference account but Since the Vat return has been filled so they cannot change there purchase figure since it is already filled in vat return . Can nyone plz tell me the possible solution of the above prob. ,and future solution of the above problem? plzzz tell ???

Replies (2)

When the invoice is wrong, how they are booking at that value??? y dont they obtain new invoice for correct           value??

Secondly, Due to higher amount of purchases, you might have taken excess input vat. So you ask them to adjust the excess input VAT  in next return....as per the respective VAT acts.

As per AP VAT act,2005 ,

          6)      a)      If any VAT dealer having furnished a return on Form VAT 200 finds any omission or incorrect information therein, other than as a result of an inspection or receipt of any other information or evidence by the authority prescribed, he shall submit an application on Form VAT 213 within a period of six months from the end of the relevant tax period.

b)      On receipt of Form VAT 213 in the case of an under-declaration, a Form VAT 307 shall be issued for the under-declared tax and the interest due on the late payment.  In the case of an over-declaration Form VAT 308 shall be issued.

 

 

Since there is no negative response from the authority ,they are saying that from now they will do it ? is that ohkk? , party says that instead of new invoice cant u change the amount withy pen ? 

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