The document discusses audit requirements under the Delhi Value Added Tax (DVAT) Act. It provides details on:
1) A notification issued in February 2013 that made VAT audit compulsory for dealers with annual gross turnover exceeding Rs. 10 crore. Dealers dealing exclusively in exempted goods and those with 100% export turnover are exempt.
2) The audit must be conducted in Form AR-1 and submitted within 7.5 months of the financial year end. Failure to do so can attract a penalty of 1% of turnover or Rs. 1 lakh, whichever is lower.
3) Gross turnover is defined and the method of calculation is explained, including inclusions like inter-state sales and exemp
DELHI VAT AMENDMENTS HIGHLIGHTS - 2012 -13TLDC INDIA
The document summarizes recent amendments to Delhi VAT regulations. Key points include:
1) The threshold for dealer registration has increased from Rs. 10 lacs to Rs. 20 lacs in annual turnover.
2) TDS rates on works contracts have increased from 2-4% to 4-6% depending on whether the contractor is registered.
3) Dealers with over Rs. 10 crores annual turnover must now submit audit reports and additional tax details online.
4) A new Form T-2 must be filed online by large dealers before goods enter Delhi from other states.
The document discusses input tax credit provisions under the Delhi VAT Act. It provides definitions and rules around claiming input tax credit, including eligible purchases, required documents, capital goods provisions, restrictions and conditions, adjustments required in certain cases, and examples. Key aspects covered include how input tax credit is only available for tax paid purchases from registered dealers using valid tax invoices, capital goods credits must be claimed over multiple periods, and reductions may apply for stock transfers, sales at a loss, or sales made under CST.
Correct Method
100
Cost Price
100
4)
4
VAT (4%)
4
Total
104
Total
104
Sales Price
120
Sales Price
120
Output VAT (4%)
4.8
Output VAT (4%)
4.8
Total
124.8
Total
124.8
1. The document discusses India's Value Added Tax (VAT) system, including definitions of key terms like input tax, output tax, and tax invoices. It also describes eligible and ineligible purchases for claiming input tax credit.
Since A is carrying out business activity of gold ornament designing in Bangalore by purchasing raw materials and stationery, he would require registration under Karnataka VAT. Even though his permanent place of business is in Delhi, since he is carrying out business activity in Karnataka, he needs Karnataka VAT registration.
OBJECTIVE
Goods and Services Tax (GST) is the Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. There are various periodic compliance requirements and filings under GST. In this webinar, we shall analyse and understand the annual returns under GST.
This document discusses opportunities for Certified Management Accountants (CMAs) in the field of indirect taxation in India. It notes that the Indian government's expected revenue from indirect taxes has been steadily increasing. CMAs can play a vital role in areas like compliance, advisory services, tax planning and litigation related to various indirect taxes such as customs, excise, service tax and value-added tax (VAT). The document provides details on the roles and certifications that CMAs are authorized for in each of these tax domains. It also lists the states in India where CMAs can conduct VAT audits, including the states, turnover limits, time limits and required forms.
The document summarizes audit requirements under the GST law in India. It discusses the annual audit that must be conducted by chartered accountants or cost accountants for businesses with annual turnover over 2 crore rupees. It also outlines the reconciliation statements that must be filed. Additionally, the document outlines the areas of focus in the audit including reconciliation of supplies, input tax credit, taxes paid and refunds. It briefly discusses the audit that can be conducted by tax authorities with advance notice to the registered business.
DELHI VAT AMENDMENTS HIGHLIGHTS - 2012 -13TLDC INDIA
The document summarizes recent amendments to Delhi VAT regulations. Key points include:
1) The threshold for dealer registration has increased from Rs. 10 lacs to Rs. 20 lacs in annual turnover.
2) TDS rates on works contracts have increased from 2-4% to 4-6% depending on whether the contractor is registered.
3) Dealers with over Rs. 10 crores annual turnover must now submit audit reports and additional tax details online.
4) A new Form T-2 must be filed online by large dealers before goods enter Delhi from other states.
The document discusses input tax credit provisions under the Delhi VAT Act. It provides definitions and rules around claiming input tax credit, including eligible purchases, required documents, capital goods provisions, restrictions and conditions, adjustments required in certain cases, and examples. Key aspects covered include how input tax credit is only available for tax paid purchases from registered dealers using valid tax invoices, capital goods credits must be claimed over multiple periods, and reductions may apply for stock transfers, sales at a loss, or sales made under CST.
Correct Method
100
Cost Price
100
4)
4
VAT (4%)
4
Total
104
Total
104
Sales Price
120
Sales Price
120
Output VAT (4%)
4.8
Output VAT (4%)
4.8
Total
124.8
Total
124.8
1. The document discusses India's Value Added Tax (VAT) system, including definitions of key terms like input tax, output tax, and tax invoices. It also describes eligible and ineligible purchases for claiming input tax credit.
Since A is carrying out business activity of gold ornament designing in Bangalore by purchasing raw materials and stationery, he would require registration under Karnataka VAT. Even though his permanent place of business is in Delhi, since he is carrying out business activity in Karnataka, he needs Karnataka VAT registration.
OBJECTIVE
Goods and Services Tax (GST) is the Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. There are various periodic compliance requirements and filings under GST. In this webinar, we shall analyse and understand the annual returns under GST.
This document discusses opportunities for Certified Management Accountants (CMAs) in the field of indirect taxation in India. It notes that the Indian government's expected revenue from indirect taxes has been steadily increasing. CMAs can play a vital role in areas like compliance, advisory services, tax planning and litigation related to various indirect taxes such as customs, excise, service tax and value-added tax (VAT). The document provides details on the roles and certifications that CMAs are authorized for in each of these tax domains. It also lists the states in India where CMAs can conduct VAT audits, including the states, turnover limits, time limits and required forms.
The document summarizes audit requirements under the GST law in India. It discusses the annual audit that must be conducted by chartered accountants or cost accountants for businesses with annual turnover over 2 crore rupees. It also outlines the reconciliation statements that must be filed. Additionally, the document outlines the areas of focus in the audit including reconciliation of supplies, input tax credit, taxes paid and refunds. It briefly discusses the audit that can be conducted by tax authorities with advance notice to the registered business.
TAX AUDIT REPORT U/s 44AB of Income Tax Act, 1961Admin SBS
Tax audit is applicable to every person i.e. i.e. individual, HUF, Company, Partnership firm,
AOP/BOI, Local authority, Co-operative society/Trust, AJP based on the below mentioned
This document is a student project submitted by Ms. Jeenal N. Rathod on Maharashtra Value Added Tax (MVAT). It provides an introduction and overview of MVAT, including its implementation in Maharashtra on April 1, 2005. It discusses the experience of implementing VAT previously in Maharashtra from 1995 to 1999. It also examines various aspects of assessment under the MVAT Act, including self-assessment, assessment of dealers, assessment of transactions, and re-assessment procedures.
Guidance Note On Tax Audit Under Section 44 Ab Of The Income Tax Act, 1961Shiva Shankara
The document provides guidance on changes made to the Guidance Note on Tax Audit under Section 44AB of the Income Tax Act of 1961. It outlines 4 key changes made by the Finance Act of 2007 relating to Section 40A(3), Rule 6DD, valuation of purchases/sales/inventory under Section 145A, and fringe benefits tax. It then provides detailed examples and adjustments to be made in accordance with Section 145A for trading concerns, manufacturing concerns, and on valuation of closing stock.
Short Term course on GST-Registration under GSTSandeep Gupta
The document discusses registration requirements under the Goods and Services Tax (GST) law in India. It states that mandatory registration is required if aggregate turnover exceeds Rs. 20 lakhs for most states or Rs. 10 lakhs for special category states, or if the person holds a license under existing law or is engaged in reverse charge transactions. It outlines the registration process which involves filing Form REG-01 along with required documents like PAN and address proof. Upon approval, the GST Identification Number (GSTIN) is issued with a 15-digit format. The next session topic will be on input tax credit under GST.
1. The document discusses the registration provisions under the Central Goods and Services Tax Act, including who is liable for registration, the registration procedure, and provisions around amendment, cancellation, and revocation of registration.
2. Key sections covered include sections 22-29 which deal with liability, exemptions, compulsory registration, registration procedure, deemed and special registrations, amendment of registration, cancellation of registration, and revocation of cancellation.
3. The registration process involves applying for registration, verification and approval, issuance of certificate, amendments, cancellations, and includes 30 registration forms prescribed.
This document summarizes the compulsory registration requirements under the Goods and Services Tax (GST) law in India. It outlines the aggregate turnover thresholds for requiring registration in different states and union territories. It also lists other specified cases where registration is compulsory, such as for inter-state suppliers, e-commerce operators, and persons supplying online information from outside India. The document provides definitions and explanations of key terms related to registration such as "person", "supplier", "business vertical", and "supply". It was prepared by Pradeep Goyal, a Chartered Accountant, for educational purposes to provide a general understanding of the GST registration requirements, not professional tax advice.
This document provides an overview of the statutory requirements for annual returns and audits under the Goods and Services Tax (GST) in India. It discusses key provisions regarding the requirement for audits based on annual turnover thresholds, the types of annual returns to be filed by different registered taxpayers, and the reconciliation statement that must be submitted along with audited annual accounts. The reconciliation statement aims to reconcile the turnover and tax amounts declared in the annual return with the audited financial statements. The document also clarifies differences in the turnover thresholds referenced in the GST law versus rules.
To understand the rationale and purpose for which tax audit report is being prepared, the contents which the professional certifies in that and the gray areas which needs to be appropriately considered by the assessee and the professionals. The session shall cover the guidance note issued by Institute of Chartered Accountants of India ("ICAI") for better clarity and understanding, the recent amendments in the reporting format and the practical advices in relation to certification for professionals as well as assessee.
Brief presentation on GSTR -2B along with screenshots from the GST Portal.Ramandeep Bhatia
GSTR 2B is a static ITC statement which provides information regarding ITC available on the basis of returns filed by a supplier. Prepared a brief presentation on the subject along with screenshots from the GST Portal.
Find out the detailed explanation of the provisions related to registration under the dual GST Law for the efficient tax administration from the presentation. Give it a read and we would love to know your feedback!
A comprehensive presentation on the various aspects and law relating to registrations under Goods and service Act ( GST ) in India including amendment and cancellation provisions
Cbec - GST - Registration Application cancellation by tax payer and tax officialgst-trichy
The document discusses the process for cancellation of registration by a tax payer in the GST system. It involves the tax payer submitting an application form with relevant details. The application is then sent to the jurisdictional officer for verification and approval by the Assistant Commissioner/Deputy Commissioner. Queries can be raised by the officer and responded to by the tax payer. If approved, the registration status is changed to inactive.
Taxmann’s Tax Audit provides a detailed commentary/clause-by-clause analysis on provisions relating to Tax Audit and clauses of Form 3CA, 3CB and 3CD along-with guidance notes issued by ICAI & Tax Audit Reckoner. This book also Tax Audit Reckoner covering the following topics:
• Audit of Cash Transactions
• Audit of Sale of Immovable Property
• Audit of Share Capital
• Audit of Loans, Deposits and Borrowings Liabilities
• Clauses of From No. 3CD not relevant/applicable to tax audit for assessment year 2021-22
• Clauses of Form No. 3CD relevant/applicable to individuals/HUFs who are liable for tax audit u/s 44AB
• Clauses of Form No. 3CD relevant/ applicable to Firms/LLPs/AOPs/BOIs who are liable for tax audit u/s 44AB
• Clauses of Form No. 3CD Relevant/applicable to companies who are liable for tax audit u/s 44AB
• Audit reports/report of accountant, etc. prescribed under Income-tax Rules
• Clauses of Form No. 3CD not applicable to assessees following cash basis of accounting
• Form No. 3CD – Clause wise applicability reckoner of income computation and disclosure standards
• Statutory provisions relevant to various clauses of Form No. 3CD
The Present Publication is the 13th Edition, amended by the Finance Act 2021 & Income-tax (Eighth Amendment) Rules 2021, authored by CA Srinivasan Anand G, with the following noteworthy features
• Analysis of the audit requirement under Income tax provision;
• An in-depth discussion on every clause of the tax audit report Form No. 3CA, 3CB and 3CD;
• Analysis of guidance note released by the ICAI on tax Audit.
- Input tax credit (ITC) allows registered dealers to claim credit for taxes paid on inputs used for manufacturing or selling goods.
- There are various restrictions and conditions for claiming ITC, including only being able to claim it for goods/services purchased from registered dealers, restrictions on certain capital goods, automobiles, and exempted goods.
- Detailed records including tax invoices must be maintained to substantiate ITC claims which are subject to review and reversal by assessing authorities.
The document discusses the various roles and opportunities for CMAs (Cost and Management Accountants) under the Companies Act of 2013 in India. It mentions that CMAs can serve as key managerial personnel, independent directors, tribunal members, company liquidators, administrators, internal auditors, and experts. They are also authorized to pre-certify various e-forms filed with regulatory authorities. The roles discussed include cost auditor, internal auditor, and pre-certification of company filings.
The document discusses Goods and Service Tax (GST) registration procedures in India. It provides details on registering for GST, amending registration details, cancelling registration, and revoking a cancelled registration. It also lists the minimum turnover thresholds for mandatory GST registration in special category states and the rest of India. The key forms required for each registration procedure are also outlined.
The document provides guidance on filing VAT returns in the United Arab Emirates. It explains that VAT returns must be filed every tax period, usually monthly or quarterly, to report output tax due on sales and input tax recoverable on purchases. It outlines the key sections of the VAT return, including taxpayer details, sales and purchase amounts, net VAT due, and additional reporting requirements. It also provides instructions on where to find the VAT return format online and how to complete each section of the return step-by-step.
This document provides an analysis and explanation of services covered under the negative list in India's service tax regime. It discusses several services specified in the negative list, including access to roads/bridges on toll payment, betting/gambling, admission to entertainment/amusement facilities, electricity transmission/distribution, and education services. For each service, it analyzes the scope of activities covered versus excluded from the negative list. It also addresses issues like taxability of bundled services and dual qualification courses.
The builder has the option to value the works contract service as per Rule 2A or as per Section 67 read with Rule 5 of Service Tax (Determination of Value) Rules, 2006. Rule 2A provides the specific method of valuation for works contract service but it is not mandatory. The service provider can choose to value its works contract service as per any other method prescribed under the Valuation Rules.
So in this case, the builder engaging sub-contractors is not mandatorily required to value the works contract service as per Rule 2A. It can choose any other valuation method prescribed under the Valuation Rules.
TAX AUDIT REPORT U/s 44AB of Income Tax Act, 1961Admin SBS
Tax audit is applicable to every person i.e. i.e. individual, HUF, Company, Partnership firm,
AOP/BOI, Local authority, Co-operative society/Trust, AJP based on the below mentioned
This document is a student project submitted by Ms. Jeenal N. Rathod on Maharashtra Value Added Tax (MVAT). It provides an introduction and overview of MVAT, including its implementation in Maharashtra on April 1, 2005. It discusses the experience of implementing VAT previously in Maharashtra from 1995 to 1999. It also examines various aspects of assessment under the MVAT Act, including self-assessment, assessment of dealers, assessment of transactions, and re-assessment procedures.
Guidance Note On Tax Audit Under Section 44 Ab Of The Income Tax Act, 1961Shiva Shankara
The document provides guidance on changes made to the Guidance Note on Tax Audit under Section 44AB of the Income Tax Act of 1961. It outlines 4 key changes made by the Finance Act of 2007 relating to Section 40A(3), Rule 6DD, valuation of purchases/sales/inventory under Section 145A, and fringe benefits tax. It then provides detailed examples and adjustments to be made in accordance with Section 145A for trading concerns, manufacturing concerns, and on valuation of closing stock.
Short Term course on GST-Registration under GSTSandeep Gupta
The document discusses registration requirements under the Goods and Services Tax (GST) law in India. It states that mandatory registration is required if aggregate turnover exceeds Rs. 20 lakhs for most states or Rs. 10 lakhs for special category states, or if the person holds a license under existing law or is engaged in reverse charge transactions. It outlines the registration process which involves filing Form REG-01 along with required documents like PAN and address proof. Upon approval, the GST Identification Number (GSTIN) is issued with a 15-digit format. The next session topic will be on input tax credit under GST.
1. The document discusses the registration provisions under the Central Goods and Services Tax Act, including who is liable for registration, the registration procedure, and provisions around amendment, cancellation, and revocation of registration.
2. Key sections covered include sections 22-29 which deal with liability, exemptions, compulsory registration, registration procedure, deemed and special registrations, amendment of registration, cancellation of registration, and revocation of cancellation.
3. The registration process involves applying for registration, verification and approval, issuance of certificate, amendments, cancellations, and includes 30 registration forms prescribed.
This document summarizes the compulsory registration requirements under the Goods and Services Tax (GST) law in India. It outlines the aggregate turnover thresholds for requiring registration in different states and union territories. It also lists other specified cases where registration is compulsory, such as for inter-state suppliers, e-commerce operators, and persons supplying online information from outside India. The document provides definitions and explanations of key terms related to registration such as "person", "supplier", "business vertical", and "supply". It was prepared by Pradeep Goyal, a Chartered Accountant, for educational purposes to provide a general understanding of the GST registration requirements, not professional tax advice.
This document provides an overview of the statutory requirements for annual returns and audits under the Goods and Services Tax (GST) in India. It discusses key provisions regarding the requirement for audits based on annual turnover thresholds, the types of annual returns to be filed by different registered taxpayers, and the reconciliation statement that must be submitted along with audited annual accounts. The reconciliation statement aims to reconcile the turnover and tax amounts declared in the annual return with the audited financial statements. The document also clarifies differences in the turnover thresholds referenced in the GST law versus rules.
To understand the rationale and purpose for which tax audit report is being prepared, the contents which the professional certifies in that and the gray areas which needs to be appropriately considered by the assessee and the professionals. The session shall cover the guidance note issued by Institute of Chartered Accountants of India ("ICAI") for better clarity and understanding, the recent amendments in the reporting format and the practical advices in relation to certification for professionals as well as assessee.
Brief presentation on GSTR -2B along with screenshots from the GST Portal.Ramandeep Bhatia
GSTR 2B is a static ITC statement which provides information regarding ITC available on the basis of returns filed by a supplier. Prepared a brief presentation on the subject along with screenshots from the GST Portal.
Find out the detailed explanation of the provisions related to registration under the dual GST Law for the efficient tax administration from the presentation. Give it a read and we would love to know your feedback!
A comprehensive presentation on the various aspects and law relating to registrations under Goods and service Act ( GST ) in India including amendment and cancellation provisions
Cbec - GST - Registration Application cancellation by tax payer and tax officialgst-trichy
The document discusses the process for cancellation of registration by a tax payer in the GST system. It involves the tax payer submitting an application form with relevant details. The application is then sent to the jurisdictional officer for verification and approval by the Assistant Commissioner/Deputy Commissioner. Queries can be raised by the officer and responded to by the tax payer. If approved, the registration status is changed to inactive.
Taxmann’s Tax Audit provides a detailed commentary/clause-by-clause analysis on provisions relating to Tax Audit and clauses of Form 3CA, 3CB and 3CD along-with guidance notes issued by ICAI & Tax Audit Reckoner. This book also Tax Audit Reckoner covering the following topics:
• Audit of Cash Transactions
• Audit of Sale of Immovable Property
• Audit of Share Capital
• Audit of Loans, Deposits and Borrowings Liabilities
• Clauses of From No. 3CD not relevant/applicable to tax audit for assessment year 2021-22
• Clauses of Form No. 3CD relevant/applicable to individuals/HUFs who are liable for tax audit u/s 44AB
• Clauses of Form No. 3CD relevant/ applicable to Firms/LLPs/AOPs/BOIs who are liable for tax audit u/s 44AB
• Clauses of Form No. 3CD Relevant/applicable to companies who are liable for tax audit u/s 44AB
• Audit reports/report of accountant, etc. prescribed under Income-tax Rules
• Clauses of Form No. 3CD not applicable to assessees following cash basis of accounting
• Form No. 3CD – Clause wise applicability reckoner of income computation and disclosure standards
• Statutory provisions relevant to various clauses of Form No. 3CD
The Present Publication is the 13th Edition, amended by the Finance Act 2021 & Income-tax (Eighth Amendment) Rules 2021, authored by CA Srinivasan Anand G, with the following noteworthy features
• Analysis of the audit requirement under Income tax provision;
• An in-depth discussion on every clause of the tax audit report Form No. 3CA, 3CB and 3CD;
• Analysis of guidance note released by the ICAI on tax Audit.
- Input tax credit (ITC) allows registered dealers to claim credit for taxes paid on inputs used for manufacturing or selling goods.
- There are various restrictions and conditions for claiming ITC, including only being able to claim it for goods/services purchased from registered dealers, restrictions on certain capital goods, automobiles, and exempted goods.
- Detailed records including tax invoices must be maintained to substantiate ITC claims which are subject to review and reversal by assessing authorities.
The document discusses the various roles and opportunities for CMAs (Cost and Management Accountants) under the Companies Act of 2013 in India. It mentions that CMAs can serve as key managerial personnel, independent directors, tribunal members, company liquidators, administrators, internal auditors, and experts. They are also authorized to pre-certify various e-forms filed with regulatory authorities. The roles discussed include cost auditor, internal auditor, and pre-certification of company filings.
The document discusses Goods and Service Tax (GST) registration procedures in India. It provides details on registering for GST, amending registration details, cancelling registration, and revoking a cancelled registration. It also lists the minimum turnover thresholds for mandatory GST registration in special category states and the rest of India. The key forms required for each registration procedure are also outlined.
The document provides guidance on filing VAT returns in the United Arab Emirates. It explains that VAT returns must be filed every tax period, usually monthly or quarterly, to report output tax due on sales and input tax recoverable on purchases. It outlines the key sections of the VAT return, including taxpayer details, sales and purchase amounts, net VAT due, and additional reporting requirements. It also provides instructions on where to find the VAT return format online and how to complete each section of the return step-by-step.
This document provides an analysis and explanation of services covered under the negative list in India's service tax regime. It discusses several services specified in the negative list, including access to roads/bridges on toll payment, betting/gambling, admission to entertainment/amusement facilities, electricity transmission/distribution, and education services. For each service, it analyzes the scope of activities covered versus excluded from the negative list. It also addresses issues like taxability of bundled services and dual qualification courses.
The builder has the option to value the works contract service as per Rule 2A or as per Section 67 read with Rule 5 of Service Tax (Determination of Value) Rules, 2006. Rule 2A provides the specific method of valuation for works contract service but it is not mandatory. The service provider can choose to value its works contract service as per any other method prescribed under the Valuation Rules.
So in this case, the builder engaging sub-contractors is not mandatorily required to value the works contract service as per Rule 2A. It can choose any other valuation method prescribed under the Valuation Rules.
The document discusses service tax implications in the real estate sector in India. It defines key terms like services, renting of immovable property, and works contracts. It outlines that renting is taxable, with exemptions for residential use. Construction is taxable with abatements, while sale after completion certificate is exempt. Works contracts are taxable based on segregation of material and labor costs. The document also provides case studies on applicability of taxes to construction of hospitals, roads, and renting arrangements with mixed-use properties.
Provident funds are retirement savings plans where monthly contributions are made by both employees and employers. Companies establish provident funds as they allow tax deductions for contributions and investment returns are tax exempt. The funds are governed by trust deeds and rules which trustees administer, making investments and distributing returns to members. A provident fund audit involves verifying contributions, investment income and returns, members' accounts, expenses and ensuring compliance with legal requirements.
Renting of immovable property is a declared taxable service under service tax. Some key points about the taxation of renting of immovable property under service tax include:
1) Service tax is applicable on the rent amount received for renting of immovable property. Security amounts and electricity charges are exempt if they are refundable or charged on actual basis. Maintenance services are taxed separately.
2) The place of provision of renting service depends on the location of the property and service provider/receiver. If both are in India, the recipient's location applies. If the property is in India, the property location applies.
3) The taxable value is the gross rent amount less property taxes
Reverse charge with relevant pops rules pdfCA Gupta
1. The document discusses reverse charge mechanism under service tax in India. Reverse charge means the liability to pay tax is on the service receiver instead of the service provider.
2. It provides details on five services where reverse charge is applicable - insurance agent services, goods transport agency services, sponsorship services, legal services, and services of an arbitral tribunal. For each service, it explains the relevant rules around applicability of reverse charge and place of provision of service.
3. The key highlights are that reverse charge will apply if the service receiver is a business entity located in the taxable territory for services of sponsorship, legal and arbitral tribunal. For goods transport agency, reverse charge applies if the freight p
1. The document discusses India's negative list of services that are exempted from service tax. It covers 17 categories of services exempted, including services provided by the government, Reserve Bank of India, agricultural services, trading of goods, manufacturing processes, and more.
2. Key points covered include the definition of government and local authority in the context of the exemption, analysis of specific services covered/not covered under various exemptions, and treatment of bundled services and advertisement agency services for taxability.
3. Printing and publishing of yellow pages and business directories is liable to service tax since it is not considered sale of advertising space exempted under the negative list.
Survey,search and seizure provisions ppt by sh r k gupta ccit mumbaiPSPCL
This document provides an overview of survey and search and seizure provisions under the Income Tax Act 1961. It discusses conditions for valid searches, presence of counsel during searches, statements made during searches, surrender of undisclosed income, assessment procedures after searches, and relevant case laws. Key points include: searches must be based on prior information; statements during searches are not necessarily conclusive; surrendered income must be substantiated; assessments after searches can be made for the past 6 years; and assessments are to be based only on new incriminating material found for previously assessed years.
VAT (value added tax) is a simple, transparent tax collected on the sale of goods throughout the chain of production and distribution. It is intended to replace sales tax in India. VAT is calculated on the value added at each stage, allowing businesses to claim credits for VAT paid on inputs. This avoids taxing the same goods multiple times under sales tax. The key features of VAT include being paid by the consumer at each point of exchange where value is added, charging tax on the difference between output and input prices, and allowing self-assessment of tax through VAT returns.
This document discusses whether a person is liable to pay wealth tax in India. It explains that wealth tax is levied on individuals, HUFs, and companies if their net wealth exceeds Rs. 30 lakh as of March 31. Some key assets covered include residential property within 25 km of city limits, urban land, jewelry, cars, and cash over Rs. 50,000. Debts related to taxable assets can be deducted from the total value to arrive at net taxable wealth. A return must be filed by the due date if liable for wealth tax. Penalties may be levied for late filing or concealment.
This document summarizes the key points made by several speakers at a presentation on the introduction of Value Added Tax (VAT) in the Turks and Caicos Islands.
[1] Nick Haywood from PricewaterhouseCoopers explained what VAT is and how it will affect consumers and businesses. He noted that prices for most goods and services will increase by 11% and small businesses may face increased costs initially.
[2] Stacey Cox from the Hotel and Tourism Association discussed how VAT may negatively impact the tourism industry, which employs over 50% of the population and has seen positive growth. Higher prices could reduce demand.
[3] Ken Adams from DoIt Centre warned that implementing
El documento proporciona información sobre la auditoría de ventas y cuentas por cobrar. Explica los objetivos de la auditoría de ventas como determinar la completitud y precisión de las ventas reportadas y la existencia de controles adecuados. También describe los procedimientos de auditoría, como verificar la segregación de funciones, autorizaciones adecuadas y pruebas sustantivas para determinar si las ventas existen y se registraron correctamente. El documento también cubre la auditoría de cuentas por cobrar, incluidos los objetivos, cuentas
The document discusses Value Added Tax (VAT) including:
- VAT is a multi-point sales tax levied on the value added at each stage of production and distribution. It aims to tax value addition rather than turnover.
- VAT was first introduced in France in 1954 and has since been adopted by many countries including India where it was introduced in 2005.
- Under VAT, tax is collected in installments at each stage of production/distribution rather than just at the final retail point like under sales tax. This avoids cascading of taxes.
This presentation summarizes the key aspects of value-added tax (VAT) in India. It introduces VAT and explains how it differs from other sales tax systems by being levied at multiple points of a product's production and distribution chain. The presentation outlines the history of taxation systems in India, the reasons for changing to VAT, how VAT affects the Indian economy, and compares the advantages and disadvantages of VAT to other systems. Real-world examples of calculating VAT are provided.
This document provides an overview of bank auditing in India. It discusses the different types of audits conducted on banks, including statutory audit, concurrent audit, and RBI audit. The stages of auditing are outlined, including preliminary work, evaluation of internal controls, preparing an audit program, and submitting the audit report. Key acts governing bank auditing in India are also listed. The purpose of bank auditing is to provide a true and fair assessment of the bank's financial position and ensure compliance with regulatory requirements.
The document provides information about the Delhi Value Added Tax (DVAT) system. Some key points:
1. DVAT is a multi-stage tax on the sale of goods in Delhi that replaced four previous tax statutes. It aims to be simpler, fairer, and more transparent than the previous sales tax system.
2. Key terms related to VAT such as taxable supplies, registered persons, input tax, and output tax are defined.
3. The mechanism of VAT is explained as tax charged on sales (output tax) minus tax paid on purchases (input tax) with the net amount due or refundable.
4. The document outlines registration requirements, tax rates, payment procedures,
The document summarizes key aspects of the Goods and Services Tax (GST) and its impact on small businesses in India. It outlines the basic GST registration requirements, tax slabs, and the composition scheme option for small businesses selling goods or services. The composition scheme provides benefits like reduced compliance and tax liability but has limitations such as no input tax credits, limited business territory, and ineligibility for e-commerce sellers. The document also discusses GST provisions for services, e-commerce businesses, and concludes with compliance suggestions.
This document summarizes a summer internship project on documenting and understanding the procedures and documentation of sales tax (MVAT) in Kirloskar Pneumatic Company Limited (KPCL). The project involved studying MVAT acts, rules and regulations in Maharashtra and comparing them to procedures followed at KPCL. The intern observed invoice generation, reviewed software and forms used, and analyzed VAT paid over the last 5 years. The intern found KPCL to be compliant with MVAT requirements and did not have any recommendations, noting the topic revolves around government laws and regulations.
The document outlines the key provisions of the Delhi Value Added Tax (DVAT) which came into effect on April 1, 2005, replacing previous sales tax laws. It details the tax rates applied to different goods, the threshold for dealer registration, procedures for registration, tax returns, assessments and audits. Dealers with an annual turnover over Rs. 10 lakhs must register and pay tax on their taxable turnover at rates from 1-20% depending on the goods. The DVAT uses a VAT system where tax is charged at each stage of production and distribution, and dealers can claim input tax credit.
The document discusses tax audit under section 44AB of the Income Tax Act. It provides details on who is required to get their accounts audited based on the thresholds for total sales, turnover or gross receipts. It also outlines the due dates for furnishing tax audit reports, the applicable forms (Form 3CA, 3CB, 3CD), penalties for non-compliance, and who is eligible to conduct such audits.
The document provides an overview of VAT implementation and requirements for the banking industry in the UAE. It discusses the FTA and their role in administering VAT, the VAT registration process, record keeping and tax return filing requirements, penalties for non-compliance, and audits. Key points covered for the banking industry include the VAT treatment of financial services, VAT liability on common banking activities, rules around issuing invoices and Islamic finance, and anti-avoidance measures.
This document provides an overview of the Maharashtra Value Added Tax (MVAT) system. It discusses the introduction of VAT globally and in India, as well as an overview of MVAT in Maharashtra. The key aspects covered include the MVAT Act and rules, registration requirements, tax invoices, rates and classifications, input credit/set off rules, payment requirements, returns, and TDS requirements. Methods of calculating VAT liability for normal dealers and works contractors are also summarized.
This document provides a summary and analysis of recommendations from the 28th GST Council meeting and subsequent notifications. Key points include:
1) A simplified return process was recommended involving a single monthly return filing with invoices uploaded continuously by buyers and sellers.
2) Taxpayers with up to Rs. 5 crore turnover will have the option to file quarterly returns with monthly tax payments. Simplified 'Sahaj' and 'Sugam' returns are introduced.
3) Several goods saw rationalization of tax rates in various notifications. Inverted duty refunds will now be allowed for textile sectors.
4) The rate of tax on canteen services provided in factories, schools, etc.
This document discusses tax audits in India. It explains that tax audits are required for businesses and professions with annual turnover over Rs. 1 crore or Rs. 25 lakhs respectively under Section 44AB. Tax audits must be completed by September 30th of the assessment year and are conducted to verify the true and fair view of financial statements. The document outlines the pre-audit, during audit, and post-audit processes and provides details on Sections 44AD and 44AE related to presumed income levels. Key aspects reviewed in a tax audit include the nature of business, TDS, cash transactions, related party payments, and financial ratios.
1) The UAE introduced a 5% VAT in 2018 to diversify government revenue beyond oil.
2) Businesses must register for VAT if their supplies and imports exceed AED 375,000 annually, or can optionally register if between AED 187,500-375,000.
3) VAT registered businesses must file VAT returns every 3 months if over AED 150M annual turnover, or monthly if over. Fines apply for late filings.
The method and procedure for VAT registration in UAE is rather straightforward, and to register for VAT, our VAT Experts will guide you along with the complete procedure.
Value Added Tax (VAT) is a multi-point tax collected on the value added at each stage of production and distribution. In India, VAT was introduced in 2005 and is governed by state laws like the West Bengal VAT Act of 2003. Under VAT, a dealer pays tax on sales (output tax) and claims a credit for tax paid on purchases (input tax) in the same tax period, usually a month. This eliminates the cascading effect of taxes being applied to previous taxes. While VAT streamlines taxation, India's federal structure restricts a pure VAT system, with the center and states collecting different taxes.
he corporation tax in India is also known as corporate tax. It is a direct tax that is levied on the total profit or income that corporate endeavors make through their businesses.
...
Rates of Corporation Tax in India for Domestic Corporations.
Gross Turnover Rate of Tax
More than Rs.250 Crore 30%
A complete presentation on Transfer Pricing study, report and procedural aspect 92D. India has signed the historic multilateral convention with 65 countries on BEPS. Safe Harbour Rules u/s 92CB now revised
The purpose of this chapter is to provide an overview of who needs to register for VAT, the criteria’s to apply for determining when a business must register for VAT and the process to follow to become VAT registered.
The document discusses various taxes in accounting including income tax, sales tax, and value-added tax (VAT). It provides details on income tax slabs for salaried individuals, how to maintain income tax withholding on goods and services, the liability and rates of sales tax, and defines VAT. The key information covered includes different categories of taxpayers for income tax, the responsibilities of withholding agents to deduct and deposit taxes, and the requirements for registered entities to file tax returns and maintain records.
The standard VAT rate will be 5% unless a zero rate or exemption applies.
The Member States have the right to subject the following sectors to a zero rate or to exempt them from VAT:
Education
Health
Real estate
Local transport
The Member States have the right to subject the oil sector, petroleum derivatives, and gas to a zero rate of VAT.
Individual GCC countries have the right to subject certain food products to a zero rate of VAT.
The Member States have the right to subject medical supplies to a zero rate of VAT.
Intra-GCC and international transport will be subject to a zero rate of VAT.
The export of goods to jurisdictions outside of the GCC Member States will be subject to a zero rate of VAT.
The Member States have the right to exempt Financial Services from VAT. The term financial services is not defined but broadly the exemption will generally relate to dealings in money, securities, foreign exchange and the operation and management of loan accounts, deposits, trade credit facilities and related intermediary services. The exemption is not expected to extend to fee based services transacted by a financial institution. However, Member States may choose to apply different VAT treatments to financial services if they wish.
Supplies of goods and services from a VAT registered person in one Member State to a VAT registered person in another Member State are subject to the reverse charge mechanism.
VAT grouping appears to be permitted between two or more legal persons resident in the same Member State.
The treatment of GCC free zones is not addressed and it is left to each Member State to determine its own VAT treatment for free zones.
Businesses with an annual revenue of over AED 375,000 will be required to register for VAT purposes.
Businesses with an annual revenue between AED 187,500 and AED 375,000 will have the option to register for VAT purposes.
This document discusses the key aspects of a tax audit in India. It provides an overview of what a tax audit is, noting that businesses with revenue over a certain threshold must undergo an income tax audit where auditors verify financial records to ensure compliance with tax laws. It also summarizes recent changes to the tax audit form, challenges faced by chartered accountants conducting these audits, the roles and responsibilities of a tax auditor, and the main purposes of a tax audit, which include ensuring accurate books of accounts and income calculation as per tax regulations.
Updated master guide on gst annual return and audit including 20 case studiesPSPCL
The document discusses the key provisions related to annual return filing and audit requirements under the Goods and Services Tax (GST) in India. It provides details about Form GSTR-9 for normal taxpayers, Form GSTR-9A for composition scheme taxpayers, Form GSTR-9B for e-commerce operators, and Form GSTR-9C for taxpayers with over Rs. 2 crore annual turnover which requires audit. It also summarizes the deadline of December 31, 2018 for filing annual returns for FY 2017-18, and the late fees of Rs. 400 per day up to 1% of turnover for delayed filing.
“Most awaited GST Annual Return (Form GSTR 9) and Audit Reconciliation Statement (Form GSTR 9C) are notified by Government vide Notification 39/2018 CT dated 4th Sep 2018 and 49/2018 CT dated 13th Sep 2018. Due date for filing of the same for F.Y. 2017-18 is 31st Dec 2018. Enclosing herewith Master Guide on GST Annual Return and Audit, covering:
§ How to Go Head with Annual Return and GST Audit
§ Important Provisions
§ Analysis of GSTR 9 Form and How to fill the same
§ Analysis of GSTR 9C Form and How to fill the same
Professional should plan their work and ensure to file the said forms before due date, without waiting for extension.”
Thanks & Regards
CA Swapnil Munot
+91 90212 65137
The document discusses changes to the Indian income tax return (ITR) forms for the assessment year 2018-19. Key changes include:
1) Only resident individuals can now use ITR-1, removing non-resident and not ordinarily resident individuals. ITR-1 also requires additional details for salary and house property income.
2) ITR forms 1-4 introduce a new late filing fee under section 234F if the return is filed after the due date.
3) ITR-4 requires additional financial details for those filing under presumptive taxation schemes.
4) ITR forms 3, 5, and 6 now require reporting of goods and services tax (GST) details
Benami Transactions (Prohibition) Act, 1988 has been amended and renamed as Prohibition
of Benami Property Transactions Act, 1988 (PBPT Act). Benami Act mainly focuses on finding
real names behind nameless real estate transactions. The amended act clearly defines the benami
transactions
The document provides step-by-step instructions for creating and adding details for outward supplies in the GSTR1 return on the GST portal. It describes how to access the portal, login, select the filing period, and click "Prepare Online" to access the GSTR1 form. It then outlines the various tiles and tables within GSTR1 for entering details of B2B invoices, B2C invoices, credit/debit notes, exports, nil rated supplies, tax liability, and HSN/SAC summaries. Specific fields and validation rules for adding details to each table are also defined.
1) Tax invoices must be issued by registered taxpayers for taxable supplies of goods or services, before or at the time of removal, delivery, or provision. Credit and debit notes can be issued for adjustments.
2) Composition dealers and exempt supplies require bills of supply instead of tax invoices. Receipts are given for advances, and payment vouchers for reverse charge supplies from unregistered persons.
3) Credit notes must be issued within 30 days of the end of the financial year for excess charges. Debit notes are for short charges. Details must be declared in GST returns.
The document provides an overview of the Goods and Services Tax (GST) in India, including:
- The design and main features of the GST law, which unified multiple indirect taxes into a single tax regime.
- The administration of GST through the GST Network and IT system, as well as the role of the GST Council and Central Board of Excise and Customs.
- The benefits of GST for businesses and consumers through simplification, reduction in compliance costs and cascading of taxes, and the creation of a national market.
This document provides an overview of the Goods and Services Tax (GST) system that is being implemented in India, including:
- The benefits of GST for trade and consumers through simplification and harmonization of taxes.
- The existing complex indirect tax structure that GST intends to replace.
- The Constitutional amendment that was passed to allow for GST and the powers it assigns.
- The role and decisions of the GST Council in determining features of the law and tax rates.
- The main features of the GST laws, including the four-tier tax rate structure, input tax credit system, and registration requirements.
- The roles of the GST Network and Central
This document provides an overview of the Goods and Services Tax (GST) session presented by CMA Ashok B Nawal. Some key points summarized:
1. GST will subsume many current central and state taxes like excise duty, VAT, service tax, etc. into two taxes - Central GST and State GST. Inter-state transactions will be levied with Integrated GST.
2. The GST model in India follows a dual GST structure being levied concurrently by the Center and States. A GST Council has been constituted to make recommendations on taxes subsumed, rates, threshold limits, and other aspects.
3. GST will be applicable across
The document summarizes the process for migrating existing taxpayers to the Goods and Services Tax (GST) system in India. It involves the following key steps:
1. Taxpayers obtain a GSTN login ID and password from the aces.gov.in website to complete the enrollment process on gst.gov.in.
2. Taxpayers complete the enrollment process on gst.gov.in by providing business and registration details as well as uploading required documents.
3. Upon successful submission, taxpayers receive a provisional GSTIN and final registration within 6 months if all information is verified correctly.
The document discusses initiatives by the Indian government to promote digital payments in India. It outlines incentives like discounts on fuel, tolls, and rail tickets for digital transactions under Rs. 2000. It introduces the Lucky Grahak Yojana and Digi-Dhan Vyapar Yojana programs that reward consumers and merchants for digital transactions between Rs. 50-3000 through daily, weekly and mega prize draws, with prizes up to Rs. 1 crore for consumers and Rs. 50 lakh for merchants. The programs are aimed at promoting and rewarding digital payments through RuPay cards, UPI, AEPS and USSD, and are being implemented by the National Payments Corporation of India.
The document outlines the agenda for a webcast on opportunities in GST, including a brief background on GST and transitional challenges. It then provides details on the timing allocated to various topics, including impact analysis through examples and key impact areas. The impact areas discussed include the need to re-engineer processes, procurement, credit carry forward claims, exemptions, composition scheme, vendor management, agreements, and accounting practices.
This document provides an overview of the proposed Goods and Services Tax (GST) model in India. It discusses the perceived benefits of GST, the existing indirect tax structure, key features of the Constitution Amendment Bill, the proposed GST model including features of the draft GST law, the role of the GST Network and Central Board of Excise and Customs, and the next steps toward implementation. The key aspects covered are the dual GST structure of CGST and SGST/IGST, the proposed tax rates and compliance requirements, and the transition process.
The document summarizes proposed revisions to the schedule of TDS for resident deductees in India. Some key changes include merging various interest income categories under a single head and reducing TDS rates for certain sections from 10% to 5%. Threshold limits for certain payments are increased and exclusions are to be separately notified. Section 193 relating to TDS on interest on securities will be deleted and replaced by a new Section 194A covering TDS on all interest payments at rates of 5-10%.
The document outlines India's efforts to reform its power sector through the UDAY program and achieve 24x7 Power For All. Key points:
1) UDAY aims to permanently resolve issues facing power distribution companies (DISCOMs) by having states take over some of their debt, improving operational efficiency to reduce losses, and enabling periodic tariff increases.
2) Operational efficiency will be improved by reducing Aggregate Technical and Commercial (AT&C) losses through better metering, infrastructure upgrades, and public awareness campaigns against theft.
3) Demand side management programs like LED lighting adoption and efficient agricultural pumps will reduce peak load and energy consumption.
4) Transparency in procurement has led to sharp
The document provides step-by-step instructions for using the online correction feature in TRACES to correct Form 24Q statements. It explains how to submit a correction request, view the status of requests, validate challan details, edit matched and unmatched challans, add new challans, and tag unmatched challans to deductee rows. Key points include submitting the request with the correct financial year, quarter and latest token number, and only editing fields that allow changes like interest claimed for unmatched challans prior to 2013-14.
The document provides an analysis of procedures to address non-deduction or non-collection of tax at source before filing a tax audit report under Clause 34 of Form 3CD in India. It summarizes key sections of the law related to tax deducted at source, including Section 40(a)(ia), Section 201, and Form 26A. It also analyzes Clause 34 of Form 3CD and provides an illustration of how to comply with the requirements when tax was not deducted on payments to residents. In under 3 sentences, the document summarizes important Indian tax compliance procedures for tax auditors relating to tax deducted at source.
This document provides an overview of tax audit requirements under Section 44AB of the Indian Income Tax Act of 1961. It discusses the key clauses and recent developments related to Form 3CA, Form 3CB, and Form 3CD for tax audit reports. Some of the main points covered include an increased scope for tax auditors, amendments to various clauses and forms, obligations to furnish information electronically, and a consolidated list of clauses required in Form 3CD tax audit reports.
Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
The report *State of D2C in India: A Logistics Update* talks about the evolving dynamics of the d2C landscape with a particular focus on how brands navigate the complexities of logistics. Third Party Logistics enablers emerge indispensable partners in facilitating the growth journey of D2C brands, offering cost-effective solutions tailored to their specific needs. As D2C brands continue to expand, they encounter heightened operational complexities with logistics standing out as a significant challenge. Logistics not only represents a substantial cost component for the brands but also directly influences the customer experience. Establishing efficient logistics operations while keeping costs low is therefore a crucial objective for brands. The report highlights how 3PLs are meeting the rising demands of D2C brands, supporting their expansion both online and offline, and paving the way for sustainable, scalable growth in this fast-paced market.
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Stone Art Hub
Stone Art Hub offers the best competitive Marble Pricing in Dubai, ensuring affordability without compromising quality. With a wide range of exquisite marble options to choose from, you can enhance your spaces with elegance and sophistication. For inquiries or orders, contact us at ☎ 9928909666. Experience luxury at unbeatable prices.
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2. Audit under Delhi VAT
Contents
Introduction to VAT Audit
1
Applicable Provisions2
Notification
3
Calculation of Gross Turnover
4
Form AR-I
5
Conclusion
6
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
3. Audit under Delhi VAT
Introduction to VAT Audit
The overall objective of the
system is to maximize the
collection of VAT Revenue
by maximizing the level of
voluntary compliance and
by deterring evasion.
The principle of checking of
submitted returns by going
through books of accounts
has been assigned to the
Professional Chartered
Accountants.
In India, VAT Audit
is compulsory in all
except 4 States,
(subject to
Turnover limits for
the dealers)
Andra
Pradesh
Haryan
a
Himacha
l Pradesh
SikkimDelhi
Till recently, Delhi was a
part of this list. However,
the Delhi Government
has notified that a Dealer
with a Turnover of over
Rs. 10 crore has to
submit a VAT Audit
report.
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
4. If, in respect of any particular year, the gross turnover of a dealer exceeds
sixty lakh rupees or such other amount as may be prescribed, then, such
dealer shall submit a report in such manner, form and period as may be
notified by the Commissioner.
Audit under Delhi VAT
Applicable Provisions
Section 49
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
5. Prior to Amendment:
A dealer whose gross turnover in a year exceeds the prescribed limit as fixed for the
purpose, under section 44AB of the Income Tax Act, 1961 as amended from time to time
or any other law substituting the Act, he shall get his accounts of such year audited by an
accountant, as per the provisions of section 49.
Date of Amendment: 31st March, 2013
Post Amendment:
For the purpose of Section 49, a dealer whose gross turnover in a year exceeds one
crore rupees, shall get his accounts of such year audited by an accountant, and shall be
liable to submit a report, as notified by the Commissioner, from time to time:
PROVIDED that the Commissioner may, by an order, require a dealer or class or classes
of dealers, to submit a simplified version of the report in lieu of report notified by him
under section 49,
PROVIDED FURTHER that the Commissioner may, by an order, exempt a dealer or class
or classes of dealers, from furnishing a report, for the purpose of Section 49.
Audit under Delhi VAT
Applicable Provisions
Rule 42A
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
7. This notification is applicable only for the dealers whose Gross Turnover
exceeds Rs. 10 crore in 2011‐12 or any of the subsequent financial years.
The following are exempt from the purview of the notification:
• Dealers exclusively dealing in commodities listed in the First schedule
appended to the act.
• Dealers with 100% export turnover.
According to the notification, every dealer liable to get his accounts audited as
per Section 49 read with Rule 42A of the DVAT Act, shall submit the audit
report to the department in the following manner:
• In the prescribed form: Form AR‐I
• Within seven and a half months from the end of the year.
Notification no. F.7/420/Policy/VAT/2011/1203‐1213 was issued by the
commercial tax department of Delhi on 11th February, 2013.
Audit under Delhi VAT
Notification
Issue of notification no. F.7/420/Policy/VAT/2011/1203‐1213 dated 11th Feb, 2013 made Audit
under Delhi VAT compulsory for dealers having a turnover more than Rs. 10 crore.
After
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
8. Audit under Delhi VAT
Applicability of Notification
This notification is applicable on the following:
A dealer whose Gross Turnover exceeds Rs. 10 crore in 2011‐12 or any of the
subsequent financial years.
The definition of Turnover under Delhi VAT is “the aggregate of the amounts
of sale price received or receivable by the person in any tax period, reduced by
any tax for which the person is liable under section 3 of this Act”
The following are exempted from the applicability of the notification:
Dealers exclusively dealing in commodities listed in the First Schedule
appended to the Delhi VAT Act.
The First Schedule contains the list of 85 “exempted commodities” under
DVAT.
Dealers with 100% export turnover. First Schedule
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
9. Audit under Delhi VAT
Who is Liable for VAT Audit
S.N. Nature of the Dealer –Based upon
Turnover
Exemption , if any.
1. Dealers whose Gross Turnover does not
exceed Rs. 1 crore
Not liable for VAT Audit
2. Dealers whose turnover exceeds Rs. 1
crore but is less than Rs. 10 crore
Form of Audit Report and
its time and manner yet
to be notified by the
Commissioner.
3. Dealers whose Gross Turnover is Rs. 10
crore or more.
1) Dealers exclusively
dealing in
Commodities listed in
first schedule to the
ACT
2) Dealers with 100 %
export Turnover.
Form Form AR‐1
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
10. Audit under Delhi VAT
Time limit and Penalty
Audit Report in Form AR‐1 to be submitted
within Seven and half months from the
date of the Financial year in duplicate.
As per section 86(18) of Delhi VAT
Amendment Act, 2013, in case the dealer
fails to comply with the provision of audit,
the dealer shall be liable to pay penalty, a
sum equal to 1% of his Turnover or sum of
one lakh rupee, whichever is less.
Issue :‐ ????
Penalty
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
11. Audit under Delhi VAT
Calculation of Gross Turnover
Part 4 of the form prescribes for the calculation of Gross Turnover.
Includes
Taxable Sales
(including
Central Sales)
Consignment
Sales/ Stock
Transfer
Job Work
Charges (In
case of Works
Contract, the
full value of
the contract is
considered)
• Goods specified in the First Schedule
• Penultimate Exports u/s 5(3) of the CST Act
• Labour & Service Charges involved in the execution
of Works Contract
• Sale of Capital Goods (Refer section 6(3) of DVAT)
• Dealers specified in the Fifth Schedule Others
Exempted
Sales
GTO
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
12. Audit under Delhi VAT
How to Calculate Gross Turnover
Particulars Rs.
Sale within Delhi Taxable under DVAT ACT XXX
Add:‐ Inter State Sale XXX
Add:‐ Sale in Course of Import and export including penultimate export XXX
Add:‐ Stock Transfer from Delhi to Branches/agents in Other State XXX
Add:‐ Excise Duty (Local and Central) and Custom Duty XXX
Less:‐ DVAT/CST payable by the dealer .. ( If already included) XXX
Less:‐ Cost of Freight or delivery separately charged in the Invoice;
provided that the ownership of the goods is not transferred at the buyer’s
place
XXX
Less:‐ Cost of installation separately charged in the Invoice XXX
Gross Turnover XXXX
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
13. Audit under Delhi VAT
Points for Discussion –Gross Turnover
Turnover as per DVAT Return or P & L Account.
Turnover of Delhi office or Entire Entity
Turnover of 2011‐12 and 2012‐13‐ A criteria
Exemption to Dealers exclusively dealing in Exempted
Goods.
Exemption to Dealers with 100 percent Export Turnover.
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
14. Audit under Delhi VAT
Relevant Definitions
Turnove
r
Goods (Section (2 m) Capital Goods
Under Section 2(zm) of
DVAT Act, "turnover"
means
the aggregate of the
amounts of sale price
received or receivable
by the person in any tax
period
reduced by any tax for
which the person is
liable under section 3 of
this Act;
"goods" means every kind of
moveable property (other than
newspapers, actionable claims,
stocks, shares and securities) and
includes –
livestock, all materials,
commodities, grass or things
attached to or forming part of the
earth which are agreed to be
severed before sale or under a
contract of sale; and
property in goods (whether as
goods or in some other form)
involved in the execution of a works
contract, lease or hire‐purchase or
those to be used in the fitting out,
improvement or repair of movable
property;
Capital Goods
Under Section 2(f) of
DVAT Act, "capital
goods" means
plant,
machinery and
equipment
used
directly or
indirectly,
in the process of trade
or
manufacturing or
for execution of works
contract in Delhi;
http://www.simpletaxindia.net/2013/09/audit-under-delhi-value-added-tax-dvat.html
15. Audit under Delhi VAT
Relevant Definitions (Sale Under Section 2(zc) of DVAT Act,
"sale" with its grammatical variations means:
any transfer of property in goods by one person to another for
not including‐
a grant or
subvention payment made by one government agency or
department, whether of the central government or of any state
government, to another)
Cash or
deferred payment or
valuable consideration
includes‐
a transfer of goods on hire purchase or other system of payment by instalments, but
does not include a mortgage or hypothecation of or a charge or pledge on goods;
supply of goods by a society (including a co‐operative society), club, firm, or any
association to its members for cash or for deferred payment or for commission,
remuneration or other valuable consideration, whether or not in the course of business;
transfer of property in goods by an auctioneer referred to in sub‐clause (vii) of clause (j)
of this section, or sale of goods in the course of any other activity in the nature of
banking, insurance who in the course of their main activity also sell goods repossessed or
re‐claimed;
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16. Audit under Delhi VAT
Relevant Definitions
a transfer, otherwise than in pursuance of a contract, of property in any goods
for cash, deferred payment or other valuable consideration;
transfer of property in goods (whether as goods or in some other form)
involved in the execution of a works contract;
transfer of the right to use any goods for any purpose (whether or not for a
specified period) for cash, deferred payment or other valuable consideration;
supply, by way of or as part of any service or in any other manner whatsoever,
of goods, being food or any other article for human consumption or any drink
(whether or not intoxicating), where such supply or service is for cash, deferred
payment or other valuable consideration;
every disposal of goods referred to in sub‐clause (vii) of clause (j) of this sub‐
section and the words "sell", "buy" and "purchase" wherever appearing with all
their grammatical variations and cognate expressions, shall be construed
accordingly;
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17. Audit under Delhi VAT
Relevant Definitions (Dealer)
Under Section 2(j) of DVAT Act, "dealer" means any person who, for the purposes of or
consequential to his engagement in or in connection with or incidental to or in the course
of his business, buys or sells goods in Delhi directly or otherwise, whether for cash or for
deferred payment or for commission, remuneration or other valuable consideration and
includes , ‐
a factor, commission agent, broker, del credere agent or any
other mercantile agent by whatever name called, who for the
purposes of or consequential to his engagement in or in
connection with or incidental to or in the course of the business,
buys or sells or supplies or distributes any goods on behalf of
any principal or principals whether disclosed or not ;
a non‐resident dealer or as the case may be, an agent, residing
in the State of a non‐resident dealer, who buys or sells goods in
Delhi for the purposes of or consequential to his engagement in
or in connection with or incidental to or in the course of the
business;
a local branch of a firm or company or association of persons,
outside Delhi where such firm company, association of persons
is a dealer under any other sub‐clause of this definition;
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18. Audit under Delhi VAT
Relevant Definitions
iv. a club, association, society, trust, or cooperative society, whether
incorporated or unincorporated, which buys goods from or sells goods to its
members for price, fee or subscription, whether or not in the course of
business;
v. an auctioneer, who sells or auctions goods whether acting as an agent or
otherwise or, who organizes the sale of goods or conducts the auction of
goods whether or not he has the authority to sell the goods belonging to any
principal, whether disclosed or not and whether the offer of the intending
purchaser is accepted by him or by the principal or a nominee of the
principal;
vi. a casual trader ;
vii. any person who, for the purposes of or consequential to his engagement in
or in connection with or incidental to or in the course of his business
disposes of any goods as unclaimed or confiscated, or as unserviceable or
scrap, surplus, old, obsolete or as discarded material or waste products by
way of sale.
iv. a club, association, society, trust, or cooperative society, whether
incorporated or unincorporated, which buys goods from or sells goods to its
members for price, fee or subscription, whether or not in the course of
business;
v. an auctioneer, who sells or auctions goods whether acting as an agent or
otherwise or, who organizes the sale of goods or conducts the auction of
goods whether or not he has the authority to sell the goods belonging to any
principal, whether disclosed or not and whether the offer of the intending
purchaser is accepted by him or by the principal or a nominee of the
principal;
vi. a casual trader ;
vii. any person who, for the purposes of or consequential to his engagement in
or in connection with or incidental to or in the course of his business
disposes of any goods as unclaimed or confiscated, or as unserviceable or
scrap, surplus, old, obsolete or as discarded material or waste products by
way of sale.
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19. Audit under Delhi VAT
Relevant Definitions
Explanation.‐ For the purposes of this clause, each of the following persons,
bodies and entities who sells any goods whether in the course of his business, or
by auction or otherwise, directly or through an agent for cash or for deferred
payment or for any other valuable consideration, shall, notwithstanding
anything contained in clause (d) or any other provision of this Act, be deemed to
be a dealer, namely:‐
i.Customs Department of Government of India administering Customs Act, 1962
(52 of 1962);
ii.Departments of Union Government, State Governments and Union territory
Administrations;
iii.Local authorities, Panchayats, Municipalities, Development Authorities,
Cantonment Boards;
iv.Public Charitable Trusts;
v.Railway Administration as defined under the Indian Railways Act, 1989 ( 24 of
1989) and Delhi Metro Rail Corporation Limited;
Explanation.‐ For the purposes of this clause, each of the following persons,
bodies and entities who sells any goods whether in the course of his business, or
by auction or otherwise, directly or through an agent for cash or for deferred
payment or for any other valuable consideration, shall, notwithstanding
anything contained in clause (d) or any other provision of this Act, be deemed to
be a dealer, namely:‐
i.Customs Department of Government of India administering Customs Act, 1962
(52 of 1962);
ii.Departments of Union Government, State Governments and Union territory
Administrations;
iii.Local authorities, Panchayats, Municipalities, Development Authorities,
Cantonment Boards;
iv.Public Charitable Trusts;
v.Railway Administration as defined under the Indian Railways Act, 1989 ( 24 of
1989) and Delhi Metro Rail Corporation Limited;
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21. Audit under Delhi VAT
Relevant Definitions
Sale Price
Under Section 2(zd) of DVAT Act, “sale price" means the amount paid or payable as
valuable consideration for any sale, including‐
I.the amount of tax, if any, for which the dealer is liable under section 3 of this Act;
II.in relation to the delivery of goods on hire purchase or any system of payment by
instalments, the amount of valuable consideration payable to a person for such delivery
including hire charges, interest and other charges incidental to such transaction;
III.in relation to transfer of the right to use any goods for any purpose (whether or not for
a specified period) the valuable consideration or hiring charges received or receivable for
such transfer;
IV.any sum charged for anything done by the dealer in respect of goods at the time of , or
before, the delivery thereof;
V.amount of duties levied or leviable on the goods under the Central Excise Act, 1944 (1 of
1944) or the Customs Act, 1962 (62 of 1962), or the Delhi Excise Act, 2009 (Delhi Act 10 of
2010) whether such duties are payable by the seller or any other person; and
Sale Price
Under Section 2(zd) of DVAT Act, “sale price" means the amount paid or payable as
valuable consideration for any sale, including‐
I.the amount of tax, if any, for which the dealer is liable under section 3 of this Act;
II.in relation to the delivery of goods on hire purchase or any system of payment by
instalments, the amount of valuable consideration payable to a person for such delivery
including hire charges, interest and other charges incidental to such transaction;
III.in relation to transfer of the right to use any goods for any purpose (whether or not for
a specified period) the valuable consideration or hiring charges received or receivable for
such transfer;
IV.any sum charged for anything done by the dealer in respect of goods at the time of , or
before, the delivery thereof;
V.amount of duties levied or leviable on the goods under the Central Excise Act, 1944 (1 of
1944) or the Customs Act, 1962 (62 of 1962), or the Delhi Excise Act, 2009 (Delhi Act 10 of
2010) whether such duties are payable by the seller or any other person; and
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22. Audit under Delhi VAT
Relevant Definitions
vi. amount received or receivable by the seller by way of deposit (whether
refundable or not) which has been received or is receivable whether by way of
separate agreement or not, in connection with, or incidental to or ancillary to
the sale of goods;
vii. in relation to works contract means the amount of valuable consideration paid
or payable to a dealer for the execution of the works contract;
vi. amount received or receivable by the seller by way of deposit (whether
refundable or not) which has been received or is receivable whether by way of
separate agreement or not, in connection with, or incidental to or ancillary to
the sale of goods;
vii. in relation to works contract means the amount of valuable consideration paid
or payable to a dealer for the execution of the works contract;
less –
any sum allowed as discount which goes to reduce the sale price according to the
practice, normally, prevailing in trade;
the cost of freight or delivery or the cost of installation in cases where such cost is
separately charged; and the words "purchase price" with all their grammatical
variations and cognate expressions, shall be construed accordingly;
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23. Audit under Delhi VAT
Relevant Definitions
Provided that where the dealer makes sale of goods imported into the territory
of India, the sale price shall be greater of the following;
a) the valuable consideration received or receivable by the dealer;
b) value determined by the Custom authorities for payment of custom duty at
the time of the import of such goods.
Provided that where the dealer makes sale of goods imported into the territory
of India, the sale price shall be greater of the following;
a) the valuable consideration received or receivable by the dealer;
b) value determined by the Custom authorities for payment of custom duty at
the time of the import of such goods.
Explanation.1‐ A dealer's sale price always includes the tax payable by it on
making the sale, if any;
Explanation.‐2 The amount received or receivable by oil marketing companies
for the sale of diesel and petrol shall be deemed to be equivalent to the price
on which the retail outlets will sell these commodities to the consumer.
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24. Audit under Delhi VAT
Questions for Sale Price ???
1. Amount of Delhi VAT
2. Higher purchases
3. Transfer of right to use of goods
4. Central excise duty and state excise duty
5. Pre sale expenses
6. Service tax
7. Customs duty
8. Security deposit
9. Works contract
10. Discounts
1. At the time of making sale
2. Ex post facto
11. Cost of freight/insurance and installation charges
12. Additional consideration/subsidy/Ex gratia
1. By Buyer
2. By government
3. By third party
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26. Audit under Delhi VAT
Form AR-1, as prescribed by the notification, contains the
following particulars:
s. no. PART Particulars Relevant Annexure
Incorporating
observations
1 Part 1 Audit Report, verification and certification,
summary of additional tax liability, adverse
comments and recommendations to dealer
1
2 Part 2 General Information about the dealer 2
3 Part 3 Details of returns furnished und Delhi VAT Act
and Central Sales Tax act
3
4 Part 4 Computation of Turnover under Delhi VAT Act 4‐1 to 4‐5
5 Part 5 Computation of Turnover under Central Sales
Tax Act
5‐1 to 5‐5
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27. Audit under Delhi VAT
Form AR-1, as prescribed by the notification, contains the
following particulars:
s. no. PART Particulars Relevant Annexure
Incorporating
observations
6 Part 6 Purchases (Local and Central) 6‐1 to 6‐4
7 Part 7 Sales against declaration forms 7
8 Part 8 Tax Deduction at source 8
9 Part 9 Financial Summary and analysis of Delhi 9
10 Part 10 Questionnaire 10
11 Part 11 Details of non‐receipt of information and
records required to conduct audit
‐
12 Part 12 Annexures forming part of Part1 to Part 10 ‐
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28. Audit under Delhi VAT
The Auditor is to submit the following enclosures along with the
Report:
Statutory audit report with complete set of annexure including that of
related party disclosure as required under accounting standard 18.
Tax Audit report under the I.T Act’1961 with complete set of annexure
including that of related party disclosure as required under Accounting
standard 18.
Audited balance sheet, P&L A/c, Income & Expenditure Account
In case dealer is having multi‐state activities, the trial balance, trading
account & P & L A/c for the business activities in the NCT of Delhi
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30. Audit under Delhi VAT
Part 1: Audit Report & Certification
1. Declarations and Audit Report from the Auditor regarding the Company
whose Audit has been conducted.
2. Summary of the Returns filed by the Assessee and whether they’re filed
on a Monthly or Quarterly basis.
3. Certifications by the Auditor regarding the verifications done by him.
There are a total of 15 certifications asked to certify by the Auditor. This
feature is unique to DVAT and has been seen for the first time in any
VAT Audit Report.
4. Qualifications by the Auditor with regards to the above certifications, if
any.
5. Summary of the additional tax liability or additional refund due to the
dealer for the relevant audit period and his Tax liability for the same.
Part 1 of the Form contains the following:
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31. Audit under Delhi VAT
Clause 3 of Part 1-CERTIFICATION
I/we have obtained all the information and explanations. which is to the best of my/ our knowledge and
belief, were necessary for the purposes of the audit Summary of the additional tax liability or additional
refund due to the dealer for the relevant audit period and his Tax liability for the same.
I/we have read and followed the Instruction for conducting the audit and preparation of the audit report;
The books of accounts and other Sales tax /VAT Related Record and Registers maintained by the dealer
along with sales and purchase invoices as also Cash Memos and other necessary documents are sufficient
for computation of tax liability under the DVAT and CST Acts;
.
I/We have Verified all returns (including the TDS returns) under the DVAT Act and CST Act filed by the
Auditee for the period under audit
The gross turnover of sales and purchases determined, includes all the transactions of sales and purchases
concluded during the period under audit in accordance with the provisions of the DVAT Act and the CST Act;
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32. Audit under Delhi VAT
Clause 3 of Part 1-CERTIFICATION
The adjustment in turnover of sales and/or purchases is based entries made in the books of accounts during
the period under audit and the same are supported by necessary documents;
The deductions claimed from the gross Turnover of sales and other adjustments thereto including deduction
on account or goods return, adjustment on account of discounts as also debit /credit notes issued or
received on account of other reasons, are supported by necessary documents and are in conformity with the
provisions of the relevant Act;
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33. Audit under Delhi VAT
Clause 3 of Part 1-CERTIFICATION
As per the information made available for the purpose of audit, the tax leviable on sales is properly
computed applying rate of tax specified in the Delhi VAT Act and/or Schedules appended to that Act,
advance rulings under Section 85 and Determination orders passed by the commissioner (unless overruled
by the Higher Courts)
Wherever the dealer has claimed sales against the declarations or certificates; except as given in para 7,
duplicate copies of all such declarations and certificates are produced before me/us and the same are in
conformity of the provisions related thereto:
;
The records related to the receipt and dispatch of goods are correct and properly maintained ;
The tax invoices in respect of sales are in conformity with the provisions of law;
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34. Audit under Delhi VAT
Clause 3 of Part 1-CERTIFICATION
The Auditee has maintained separate bank account for carrying its activities in the National Capital
Territory of Delhi. The Bank statement have been examined by me/us and they are fully reflected in the
books of accounts;
The dealer is conducting his business from the place/places of business declared by him as his principal place
of business/and the additional place of business; and
Due professional care has been exercised while carrying the audit, and based on my observations of the
business processes and practices, Stock of inventor, and books of account maintained by the dealer, 1/we
fairly conclude that,
i.if dealer is dealing in the commodities mentioned in the Part 3 of this report;
ii.Sales tax/VAT related records of the dealer reflect true and fair view of the volume and size of the business
for period under audit.
The Auditee/Dealer, if opted for Composition Scheme under Section 16 has fulfilled all the necessary
conditions of the Scheme and has complied with the requirements of the Scheme.
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35. Audit under Delhi VAT
Part 2 - General Information about the Dealer:
This part contains the following information:
1.General Information
A. General
B. Related Information under Delhi VAT Act
C. Related Information under CST Act
D. Related Information under Other Acts
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36. Audit under Delhi VAT
Part 2 - General Information about the Dealer:
2. Business Related Information
1. Info related to Accounting
2. Business Activities in Brief
3. Commodities dealt in
4. Address of Business place
5. Accounting Software
6. Method of Accounting
7. Method of Valuation
8. Major changes during audit period
9. Nature of Business
10.Constitution of Business
11.Working Capital Employed
3. Particulars of Bank Account(s) maintained
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37. Audit under Delhi VAT
Part 2 - General Information about the Dealer:
Important Points:‐
1. Related Party disclosure
2. Information about separate books of accounts
3. Bank Account detail
3 Particulars of the Bank Account(s) maintained during the period under Audit
Sr.
No.
Name of the Bank Branch BSR Number
(Give Branch
Address, if BSR code
not known)
Account
Number(s)
Whether the
account is
operated for other
State activities
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38. Audit under Delhi VAT
Part 3: Details of Returns Furnished under DVAT and CST Act
PART-3
DETAILS OF RETURNS FURNISHED UNDER THE DELHI VAT ACT AND
CENTRAL SALES TAX ACT
Sr.
No.
Tax Period
Due Date of e-
filing
Date of e-filing
Due Date for filing
of Hard copy
Date of filing of
Hard copy
1
2
3
4
5
6
7
8
9
10
11
12
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39. Audit under Delhi VAT
Part 4A: Computation of Turnover under DVAT Act
This part is prescribed for the calculation of Gross Turnover and
computation of the VAT liability thereon with respect to Local
Sales. It is calculated in the following manner:
1.Gross Turnover Of Sales
(Including: Taxable Sales, Exempted Sales, Consignment / Branch Transfers, Job
Work Charges.) (For works contract, gross consideration includes labor, services
& land price)
2.Add: Central Sales
3.Turnover Under DVAT (1‐2)
4.Computation Of Output Tax (Refer Part 4C)
5.Adjustment In Output Tax
6.Net Output Tax [4(+/‐) 5 ]
7.Input Tax Credit
8.Adjustments in ITC
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40. Audit under Delhi VAT
Part 4A: Computation of Turnover under DVAT Act
9. Net ITC [ 7(+/‐)8]
10. Net Tax Payable (6‐9)
11. Add: Interest Payable
12. Add : Penalty Payable
13. Less T.D.S
14. Less Tax Deposited
15. Less: Amount Adjusted Against CST Liability
16. Less: Refund Availed
17. Amount Payable/(‐)Excess [10+11+12‐(13 To 16)]
18. Amount Paid During Audit (taken from Returns)
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41. Audit under Delhi VAT
Part 4A: Computation of Turnover under DVAT Act
Computation of Gross Turnover of Sales:
1.Taxable Sales
Taxable Sales consist of the following:
A. Sale of Goods‐ Local‐ Taxed at the rate given in the Schedules prescribed in the Act
B. Sale of Goods‐ Central‐ Two different methods of taxability:
i. Against C‐Form: If sold interstate to a registered dealer and C‐Form is procured
regarding the same, then the sale will be taxed @ 2%
ii. Not against C‐Form: If C‐Form is not procured, then the sale will be taxable at
the rate given in the Schedules prescribed in the Act.
2.Exempted Sales
Exempted Sales consist of the following:
A. Goods specified in the first Schedule of the Act
B. Penultimate Exports u/s 5(3) of the CST Act
C. Labour & Service Charges involved in the execution of Works Contract
D. Sale of Capital Goods (Refer section 6(3) of DVAT)
E. Dealers specified in the Fifth Schedule
F. Others (Eg: E‐I/II (subsequent) sales made locally exempt under section 6(3) of the
CST Act, Any goods exempted via some notification, Service/Admin Charges like
Interest etc. )
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42. Computation of Gross Turnover of Sales:
3.Value of Consignment/Branch Transfer
• A Branch Transfer is where the Principle office transfers the Goods to one of its own
Branches without any consideration. A branch transfer is not chargeable to VAT.
However, declaration from the Branch is required as a Compliance for the same. This
declaration is received in the Form F, procured from the VAT departments. Form F is
issued on a monthly basis.
• A Consignment Sale is a Trading arrangement in which a seller sends goods to a
buyer or reseller who pays the seller only as and when the goods are sold. The seller
remains the owner (title holder) of the goods until they are paid for in full and, after
a certain period, takes back the unsold goods.
4.Job Work Charges
Job Work Charges consist of the Total Consideration received for the execution of
Works Contract, for both Local and Interstate Sales. Works Contract is a contract which
consists of both Sale of Goods and Provision of Service in the same contract.
Under VAT, only the Goods portion is chargeable, however in calculating the Gross
Turnover, the whole Contract value is considered.
Audit under Delhi VAT
Part 4A: Computation of Turnover under DVAT Act
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44. Audit under Delhi VAT
Audit Checklist for gross Turnover
Check the income side of P&L A/c to ensure that job work,
sale of DEPB, rent of machinery etc.
Ensure reconciliation inter branch/ consignment A/c.
Sale of fixed asset.
Unbilled revenue in customer A/c.
Income which to be taxed under service and VAT both.
If income is directly credited to customer A/c.
If goods are sent on delivery challan basis are bill to then as
per contract.
Goods in transit.
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45. Audit under Delhi VAT
Computation of Taxable Turnover
Gross turnover XXX
Less: Exempted goods (Sch 1) Section
6(1)
XXX
Less: Turnover of Exempted dealers
Section 6(2)
XXX
Less: Turnover of Capital goods Section
6(3)
XXX
Less: Sale in course of interstate trade or
commerce
XXX
Less: Sale outside Delhi XXX
Less: Sale in case of export from India
and import in India
XXX
Less: Works contract‐ Value of Land and
labour service and like charges
XXX
Total Taxable Turnover XXX
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46. Audit under Delhi VAT
Checklist for Input Tax credit
1. Credit is only against Tax invoice
2. Eligible purchase
3. Use for eligible sale – means not for exempted goods
4. Reversal of input tax credit in term of section 9(6).
1. Credit Note received
2. Stock transfer/consignment transfer (2%)
5. No credit for purchases from a dealer who is paying tax
u/s 16 of the DVAT Act.
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47. Audit under Delhi VAT
Questions related to Input Tax Credit on Capital goods
1. Time of allowance tax credit
2. Adjustment in input tax at the time of sale of capital goods
3. Transfer of capital goods to other state before expiry of 3 years.
4. Reversal of input tax credit if capital goods sold within a 5 year at the
price below the fair market value
5. Restriction on claiming depreciation on Input Tax.
Detail in following format
Nature of
capital goods
Cost of goods Amount of Tax
involved
Tax credit
claimed during
2012‐13
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49. Audit under Delhi VAT
Part 4C: Computation of Output VAT
4C COMPUTATION OF OUTPUT VAT
Sl. No
Nature of goods
/ class of goods
(Top 10)
As per returns As per Auditor
DifferenceDVAT
Turnover
Output Tax
Applicable
Rate of Tax
Relevant
entry of
schedule
DVAT
Turnover
Output Tax
1
2
3
4
5
6
7
8
9
10
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50. Audit under Delhi VAT
Part 5A: Computation of Turnover under CST ACT
This part is prescribed for the calculation of Gross Turnover and computation of the CST liability
thereon with respect to Central Sales. It is calculated in the following manner:
1.Gross turnover of sales including Taxable & Exempted transaction like value of
consignment/Branch transfer & Job work charges
2.Turnover under DVAT
3.Central sales
4.Cost of freight, deliveries, insurance or installation separately charged.
5.Value of goods returned under CST.
6.CST collected, if included in the central turnover
7.Cash discounted allowed and included in Central Turnover.
8.Job work, labor & services charges for works contracts Net central turnover [3‐4‐5‐6‐7‐8]
9.Export outside India u/s 5(1) of the CST Act.
10.Sales in the course of import u/s 5(2) of the CST Act.
11.Penultimate sales against H forms u/s 5(3) of the CST Act.
12.Stock/branch transfer against F forms u/s 6A of the CST Act.
13.Sales against E‐1 & E‐11 forms u/s 6(2) of CST Act.
14.Sales to diplomatic missions & U.N etc. U/s 6(3) of CST Act.
15.Exempted sales u/s 8(5) of the CST Act.
16.Sales covered under proviso to section 9(1) read with section 8(4)(a)
17.Sales of goods outside Delhi (section 4)
18.Total of exemption /deduction [sum(10:18)]
19.Balance total taxable turnover of inter state sales (9‐19)
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51. Audit under Delhi VAT
Part 5A: Computation of Turnover under CST Act
21. Breakup of Turnover
22. Turnover of Declared Goods Against C Forms [Sec. 8(4) Read With Sec. 14]
23. Turnover of Declared Goods Sold Otherwise [Sec.8(2) Read With Sec.14]
24. Turnover of Other Than Declared Goods Against C forms [Sec.8(4) Read With Sec 8(1)
25. Turnover of Other Than Declared Goods Sold Otherwise [Sec.8(2)]
26. Computation of CST
27. Total CST Payable [Refer To Part 5B]
28. Add: Interest Payable
29. Add: Penalty Payable
30. Less: Amount Adjusted Against DVAT Credits.
31. Less: Tax Deposited
32. Amount Payable [25+26+27‐28‐29]
33. Amount Paid During Audit (Taken from Returns)
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52. Audit under Delhi VAT
Part 5B: Computation of CST
5B COMPUTATION OF CENTRAL SALES TAX
Sl. No
Nature of
goods /
class of
goods
As per returns As per Auditor
DifferenceCST
Turnove
r
Tax paid
Applicabl
e Rate of
Tax
Relevant
entry of
DVAT
schedule
CST
Turnover
Tax
1
2
3
4
5
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54. Audit under Delhi VAT
Branch Transfer checklist ‐ Section 6 A
1. It should not be pre determined sale.
2. Method of valuation of goods
3. Whether single form F consist stock transfer made during
multiple Months
4. Whether form F duly filled and signed have been furnished to
the AO.
5. Branch agent etc have been included in the central
registration certificate.
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58. Audit under Delhi VAT
Checklist
1. Verify whether the Auditee has furnished declaration form within the specified
period.
2. Give detail of pending forms yet to be furnished before authorities on the due date.
3. Verify whether proper extension, if necessary, has been apply along with DVAT 51.
4. Precaution
5. Auditor shall verify the following:
a) Name and Address of both the seller and purchaser
b) TIN, CST no, of the seller and purchaser
c) Stamp of issuing state authority
d) Date of issue of form
e) Detail of invoices against which the forms have been issued
f) Cutting and over writing should be properly authentic.
g) Annexure attached along with the form should be properly authentic
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59. Audit under Delhi VAT
Part 8: TDS u/s 36A of DVAT ACT
Section 36A under the DVAT Act prescribes the liability of a Contractee to deduct WCT‐
TDS from the payment he is to make to the Contractor in case of a Works Contract and
deposit the same with the Department in the prescribed forms. It says “Any person, not
being an individual or a HUF who is responsible for making payment to any the contractor
for discharge of any liability on account of valuable consideration payable for the transfer
of property in goods in pursuance of a works contract, for value exceeding Rs. 20,000/‐ or
such amount as may, T.D.S thereon at the rate of 2%”
Part 8 of the form contains a reconciliation between the TDS Return and the amount
determined during the Audit of the following:
Amount of Contracts awarded as a Contractor
Amount of Contracts awarded as a Contractee
Amount of Contracts executed by Contractor
Amount of Contracts executed by Sub Contractor
Tax Deducted at Source as a Contractee
Tax Deducted at Source as a Contractor
TDS deposited in time
TDS deposited late
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60. Audit under Delhi VAT
Part 9: Financial Summary & Analysis (Delhi Only)
It’s a detailed reflection of the Financial Books of the Company in the Audit Form. It
consists of the following:
A. Income:
Sales, Services rendered, Misc. Income including interest.
B. Expenditure
Opening Stock, Purchases, Contracts, Labour & Wages, Other
manufacturing expenses, Salaries, Financial Charges, Advertisement
Expenses, Depreciation.
C. Capital & Liabilities
Capital Employed & Reserves, Long Term Loans, Short Term Loans, Creditors
D.Assets
Fixed Assets, Investment, Cash & Bank, Debtors, Stock, Other Current
Assets, Loans & Advances
E.Financial Ratios
GP Ratio, NP Ratio, Stock‐to‐Sales, Creditors‐to‐Purchases, Purchases‐to‐
Sales, Profit‐to‐Funds employed
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61. Audit under Delhi VAT
Part 10: Questionnaire
1. Related to dealer engaged in works contract.
a) Test check of contracts
b) Valuation method works contract
2. Maintenance of books of Accounts.
3. Verification of RC
4. Question related to bank guarantee – Fixed deposit.
5. Last but not the least
1. Whether the Auditee has violated any other provision of the DVAT Act
or CST Act.
2. Are you satisfied, in general, with the compliance of VAT/CST laws by
the auditee.
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