Compiled By CA Amit K. Ganar
Details of changes in VAT audit report format Version 1.2.1
1. Part 1- 2(B)(b)
Schedule and annexure as applicable to be ticked, compare to be score out which were not applicable.
A welcomed change, in earlier report no one was took effort to score out.
2. Part 1 Table 5
Details of Auditors are asked very specifically with compare to old report. There was more ambiguity about the details specially where to write the name of Auditor and of auditor firm.
3. Validation buttons in all parts, Schedules & annexure taken at the bottom rather than at top.
4. Activity Code: Column for mentioning the rate of tax has been removed.
5. Annexure E – Section 3 & 4 (Details of reduction u/r 53 & 54)
These section themselves incorporated with the sub-clauses of rule 53 & 54 respectively
6. Annexure F
– Column of “Method of computation & Observations, if any” has been removed
– Row 13 has been inserted asking the “OMS purchases which are capitalized” separately.
– In addition to this 15 new row has been added by replacing the details of Opening and closing stock.
Newly added details ask more particularly about the opening and closing stock of
– Raw Material
– WIP
– Finished goods
– Packing material
– Stores & Spares
Sales of Fixed Assets
Gross receipts as defined in Rule 53(6)
Turnover of sales as per Profit & Loss A/c
Total non-sale income
7. Annexure G newly inserted (earlier there Annexure G for details of URD purchases but there after removed.
Annexure G is for Details of Declaration or certificate received.
Details of forms to be mentioned are
– Form C
– E-I
– E-II
– Form H for local sale
– Form H for OMS
– I Form
– J Form
Total 999 rows are given; details are to be mentioned the forms/declaration in descending format depending on the value of the same.
8. Annexure J (1) Customer Wise VAT Sales
– 1000th row replaced for “remaining local transactions total where tax is collected separately not covered above” i.e. transactions after 999 transactions entered or the transactions on which VAT is collected but VAT TIN is not available, and party will going to claim the VAT in its return.
– 1001st row inserted for “Local Sales to non TIN holders” i.e. sales to end consumers who will not going to claim the VAT
– 2002nd row inserted for “Gross local sales where tax is not collected” – do not put figure in this column
9. Annexure J (2) – Supplier wise VAT purchases
– 1000th row replaced for “remaining local transactions total where tax is paid separately not covered above” i.e. transactions after 999 remains to be mentioned
– 1001st row inserted for “Local Purchase from non TIN holders” i.e. URD purchases , but the VAT amount is kept open to mentioned the VAT tax, how URD supplier charge VAT??
– 2002nd row inserted for “Gross local Purchase where tax is not paid separately”
10. Annexure J (3)- Customer wise Debit Note or Credit Note
– 500th row replaced for “remaining local transactions of Debit/ Credit Notes where tax is collected separately (not covered above)”
– 501st row inserted for “Debit/ Credit Note in case of local sales to Non TIN holders”
– 502nd row inserted for “Gross local sales for Debit/ credit notes where tax is not collected separately”
11. Annexure J (4)- Supplier wise Debit Notes or Credit Notes
– 500th row replaced for “remaining local transactions of Debit/ Credit Notes where tax is collected separately by supplier (not covered above)”
– 501st row inserted for “Debit/ Credit Note in case of local purchases to Non TIN holders”
– 502nd row inserted for “Gross local purchases for Debit/ credit notes where tax is not collected separately”
12. Annexure J (5) Customer wise transactions of Direct Export and Highseas Sales Under CST Act 1956
This Annexure has been newly incorporated and details are asked as
– Customer Name
– TIN of Customer (if Any)
– Transaction type, Export or High Seas Sales
– Gross Total
– Major Commodity
13. Annexure J (6) Suppliers wise Transactions under CST Act 1956
This Annexure has been newly incorporated and details are asked as
– Customer Name
– TIN of Customer (if Any)
– Transaction type, OMS purchase, Direct Import, High seas purchase, Purchase U/s 6(2) & Branch transfer
– Any other cost of purchase
– Gross Total
From the details mentioned above it can be judge how much department is taking care of OMS transactions after C form Scam.
On the basis of details above Chartered community should think about increasing fees of VAT audit.
Final Words-
In Short the department have improve the image by
– Removing the ambiguities from the audit report
– Drafting a good looking format (as far as of earlier format)
– Asking specific information what they expect in audit report
– Collecting details in Annexure J which will going to help us in case of refunds, or so called speedy refunds.
But on other hand department is looking very cautious about OMS transactions particularly OMS purchases and about the C forms. Annexure J (5) & (6) added, the trouble with the auditors now is only that, the dependency for information of these annexure will increase and VAT audit will prove the much time consuming process compare to the fees going to RECEIVED. ??? That’s why I had mentioned that we as community should think to increase the fees.
Whether any tax is required to be paid by purchaser for URD purchases. IIt is said that we caanot claim setoff as we are not paying any tax on URD. But if we have RD purchases also eg. 10lacs RD pyrchases are there & on that MVAT paid is 50,000. can we claim setoff of this Rs.50,000/- or not. Pl. explain. Give full details of URD. RD, OMS