New form of MVAT Audit report and GST Issues

Arjun (Fictional Character): Krishna, New Report of MVAT report has been released. Who are liable to get books of accounts audited as per MVAT Act?

Krishna (Fictional Character): Arjuna, Yes new format of Audit report for MVAT Audit has been released. This will be audit for the 3 month i.e April 2017 to June 2017 and government has made many changes in the report. Everywhere there is workload of GST but still VAT audit for these 3 months has to be carried out. For all those taxpayers who have crossed turnover of Rs 25 Lakhs from April 2017 to June 2017 they are liable to get their accounts audited. In Pre- GST the prices of many goods have increased and certainly taxpayer’s turnover also has increased, hence it is necessary for audit of accounts for the 3 months.

Arjuna: Krishna, What are the changes in the new report?

Krishna: Arjuna, In old report there were Part A, Part B, Schedule and Annexures. The government has made many changes in the annexures and Part B of the report which required details of taxpayer’s name, Bank Details, Activity Code etc. this has been removed in the new format.

Arjuna: Krishna, What are the changes made in Schedules and Annexures?

Krishna: Arjuna, Like there were 6 schedules in MVAT returns, the same schedules are brought in the new Audit report. Earlier there were 14 annexure in the audit report and now there are only 11. Annexure G,H,I which used to be there earlier is now made only annexure G(n) and in that details regarding bill no, code and date need to be given. Annexure C(n) has been introduced which require details of TCS. Earlier J-1 and J-2 has been done away with and Annexure for Sale and Purchase has been introduced. Annuxure J-5 and J-6 has been done away with.

Arjuna: Krishna, What are the details of GST which are to be given in the audit report?

Krishna: Arjuna,

1. In the schedule 1-6 the turnover of the taxpayer as per Maharastra State GST i.e SGST has to be provided. Also details of credit carried forward as per TRANS  are also to be reported. SGST turnover of which period is to be provided is the issue.

2. If any business is closed or the taxpayer has opted to go for composition scheme then such details has to be reported in Annexure E. Details of retention also has to be provided in case of Taxpayer opting for composition scheme. Also new column has been added as per section 52B and 53(11).

3. Details of TRANS credit will have to be given and that will be as per Table 5C, 6B(VAT), 6B(Entry Tax) and 7B in annexure ‘F’.

Arjuna: Krishna what lesson must taxpayer take from this?

Krishna: Arjuna, When it comes to tax compliance each and every taxpayer irrespective of his size of the business, the taxpayers needs to comply with the law. Today’s life is fast moving and each and every person wants earlier returns. New changes are coming up with the new items and one must keep pace with it and the businessmen must follow the rules for smooth functioning of their business. There will be many issues of Transitional Provisions from MVAT into GST so care should be taken by the taxpayer and further what is the due date of submission of audit report is not clear yet.