How to disallow vat payable not paid before due date.

Your client will have to pay interest.

Sec43B applies to VAT i.e deduction will be allowed on payment basis. Asper your query, deduction of VAT has been given on due basis rather on payment basis. For the previous years where deduction has already been given as an auditor u cant don any thing for previous years but for current year 2012-13 , VAT deduction must allowed only on payment basis.Also for current year2012-13,for the deduction to be allowed , the date of payment of VAT wiil be on or before due date of filing of return of income i.e Sept30,2014

All the irregularities for the previous year will be the responsibility of previous auditor. However you should make adequate disclosures in Form 3cd .for the current year.