audit program

Dear Kunal,

Following are the points to be kept in mind while performing a Maharashtra VAT Audit:-

1) Check the Purchase vouchers of the dealers thoroughly. See whether VAT is charged in each bill. See that the Purchase Invoice bears the VAT TIN No. of the Dealer. 

2) Make a list of Customer wise sales on which VAT has been charged by the dealer which includes VAT TIN No. of the party, Net Taxable Amt. VAT Amt. and Gross Amt.

3) Check whether there are any goods return by the dealer. If the goods have been returned see that the VAT on the same has been reversed. But if the goods are returned after 6 months then the VAT cannot be claimed in such case.

4) Verify the VAT payment challans (Challan No. 210) and the half yearly/quarterly/monthly returns filed by the dealer. Make a chart of the same. Check whether any Sales Tax has been paid by the dealer, also see the Sales Tax Returns filed by him at regular intervals.

5) See that VAT on Fixed Assets such as Furniture, Computers etc is not claimed fully because they are restricted to 3% reduction in set off as per Rule 53.

6) Make a list of the C form/H form issued and received.

7) Verify the Debit/Credit notes issued and received by the dealer. Make a list of the same which includes the VAT TIN No. of the party, Net Taxable Amt. VAT Amt. and Gross Amt.

8) As per the Audited Financial Statements of the dealer, he has to furnish information (ie. ratios) in relation to Sales within/from Maharashtra.

9) Collect other information such as Profession Tax No., Luxury Tax No., if any, Import Export Code No. if any, Service Tax Registration No. if any, any additional place of business of the dealer etc.

Regards, 

Devendra. P Kulkarni