I am attaching herewith Presentation on New MVAT form by C.A. Umesh Sharma for the benefit of C.A. in Practice.
Format of Letter of Appointment and Engagement of an Auditor
Appointment and Engagement of an Auditor.
SPECIMEN LETTER OF APPOINTMENT – By COMPANY
Ref………………… Date………….
M/s ABC & CO,
Chartered Accountants,
ZYZ Road,
Aurangabad
Sir,
Subject: APPOINTMENT AS VAT AUDITOR UNDER SECTION 61 OF THE MVAT Act, 2002, FOR THE FINANCIAL YEAR ENDING 31st March_______.
We are pleased to inform you that your firm has been appointed as VAT Auditors of our company for conducting the audit under section 61 of the MVAT Act, 2002. for the accounting period __________ to ________. vide the resolution (reproduced below) passed at the meeting of the Board of Directors which was held on ………..
“Resolved that M/s ABC & CO, Chartered Accountants, be and are hereby appointed as the VAT Auditors of the company for conducting the audit under section 61 of the MVAT Act, 2002 for the accounting year ending on …………, relevant financial year ………….. to ……….. at a remuneration of Rs ………… in addition to out of pocket expenses to be fixed with the MD in consultation with M/s ABC & CO.”
*Further we inform you that our statutory auditor under the Companies Act. is M/s ………… , Chartered Accountants and our tax auditor under Income Tax Act is M/s ……………., Chartered Accountants
We will be grateful if you would kindly send us your acceptance of this appointment.
Yours Faithfully.
For . PQR LTD.
Secretary/Managing Director/Director
* as may be applicable.
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SPECIMEN LETTER OF APPOINTMENT – BRANCH AUDITORS-By COMPANY
Ref………………… Date………….
M/s ABC & CO,
Chartered Accountants,
ZYZ Road,
Aurangabad
Sir,
Subject: APPOINTMENT AS VAT AUDITOR OF ……………… BRANCH UNDER SECTION 61 OF THE MVAT ACT, 2002, FOR THE FINANCIAL YEAR ENDING ON 31st March _______.
We are pleased to inform you that your firm has been appointed as VAT Auditors of the branch of our company for conducting the audit under section 61 of the MVAT ACT 2002. for the accounting period __________ to __________. vide the resolution (reproduced below) passed at the meeting of the Board of Directors which was held on ………..
“Resolved that M/s ABC & CO, Chartered Accountants, be and are hereby appointed as the VAT Auditors of the ………… branch of our company for conducting the audit under section 61 of the MVAT Act 2002 for the accounting year ending on ………….., relevant financial year _________ to __________ at a remuneration of Rs ………… in addition to out of pocket expenses to be fixed with the MD in consultation with M/s ABC & CO.”
*Further we inform you that our statutory auditor under the Companies Act. is M/s ………… , Chartered Accountants and our tax auditor under Income Tax Act is M/s ……………., Chartered Accountants
We will be grateful if you would kindly send us your acceptance of this appointment.
Yours Faithfully.
For . PQR LTD.
Secretary/Managing Director/Director
* as may be applicable.
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SPECIMEN LETTER OF APPOINTMENT – By PARTNERSHIP FIRM/SOLE PROPRIETARY CONCERN
Ref………………… Date………….
M/s ABC & CO,
Chartered Accountants,
ZYZ Road,
Aurangabad
Sir,
Subject: APPOINTMENT AS VAT AUDITOR UNDER SECTION 61 OF THE MVAT ACT 2002, FOR THE FINANCIAL YEAR ENDED ON 31st March ……
We are pleased to inform you that your firm has been appointed as VAT Auditors of our firm / my proprietary concern for conducting the audit under section 61 of the MVAT ACT 2002 for the accounting period from ………… to …………….
The remuneration for the conduct of this audit will be Rs…………… in addition to traveling and out-of-pocket expenses.
*For your information, our/my tax auditor under Income Tax Act is M/s …………., Chartered Accountants
We will be grateful if you would kindly send us your acceptance of this appointment.
Yours Faithfully.
For . PQR & Co
Partner / Proprietor
* as may be applicable.
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SPECIMEN LETTER OF COMMUNICATION WITH PREVIOUS MAVT AUDITOR
Ref………………… Date………….
PQR & CO,
Chartered Accountants,
ZYZ Road,
Aurangabad
Sir,
REG : OUR APPOINTMENT AT MVAT AUDITORS OF AB LTD.
We have been asked by AB LTD, to undertake the audit of their accounts under section 61 of MVAT Act 2002. for the accounting year ending on 31st March ……….. relevant to accounting period …………….. to ………….. . Before we accept this audit, we are writing to enquire whether you know of any professional reasons why we should not accept the same.
Yours faithfully,
For XYZ & CO
Chartered Accountants
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Specimen Letter of audit engagement under mvat act 2002.
TO,
The Chairman/Partner/proprietor
ABC Industries
Aurangabad.
Subject: Terms of audit engagement.
Dear Sir,
We thank you for you letter No. ……… Dated ………., appointing us as MVAT Auditor of your Company/firm/proprietary concern/trust for conducting MVAT AUDIT under section 61 of MVAT ACT 2002. This letter is intended to confirm our engagement with you to audit the financial statements of ABC Industries for the year ended on 31st march ………..
We will conduct our audit in accordance with the auditing assurance standards generally accepted in India and in accordance with the applicable authoritative pronouncements of the Institute of Chartered Accountants of India along with the requirements of MAVT Act, 2002 and rules mentioned there under.
On the basis of our examination, we are expected to report that :
a) In my / our view the books of accounts and other sales tax related records and registers maintained by the dealer are sufficient for verifications of correctness and completeness of the returns.
b) The gross turnover of sales declared in the returns includes all the transactions of sales concluded during the period of review.
c) The gross turnover of purchases declared in the returns includes all the transactions of purchases made during the period of review.
d) The adjustment to turnover of sales and/or purchases is based on entries made in the books of accounts during the period of review.
e) The deductions from the gross turnover of sales, including deduction on account of goods return, claimed in the returns are in conformity with the provisions of the relevant Act.
f) Considering the classification of goods sold and rate of tax applicable, computation of sales tax payable as shown in the returns is correct.
g) Computation of set-off admissible in respect of purchases made during the period of review and adjustment to set-off claimed in the previous period is correct.
h) Computation of Cumulative Quantum of Benefits (CQB)is in conformity of the provisions of the Act in this regard.
i) Other information required to be given in the returns is correct and complete.
For the purpose of verification of correctness and completeness of the returns, we have to rely on the following things, the maintenance of which is the sole responsibility of the management.
a) Books of Accounts for the year ended ……………
b) Profit & Loss Account and Balance Sheet for the year ended………
c) Records /registers relating to sales, purchases, stock, branch transfers (List the records / registers to be verified)
We look forward to full cooperation with your staff and we trust that they will make available to us all records, documents and other information as required in connection with our audit.
Our fees will be billed as the work progresses.
This letter will be effective for future years unless it is terminated amended or superseded.
If the forgoing is in accordance with your understanding, please sign the enclosed copy of this letter in the space provided to indicate your acceptance to the terms of engagement, and return it to us at your earliest convenience.
PQR & CO.
Chartered Accountants
………….
(Signature)
(Name of the CA)
Partner
The terms of this letter
Constitute our agreement.
Accepted by……………
Chairman, Board of Directors
ABC Industries Ltd.
Date…………..
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SPECIMEN MANAGEMENT REPRESENTATION LETTER FOR MVAT AUDIT
The following letter is a general guidance. Representation made by management may vary from one entity to another and from one year to another. It should be adopted in the light of individual requirements and circumstances.
[LETTERHEAD OF ENTITY]
M/s ABC & CO, Date :
Chartered Accountants,
ZYZ Road,
Aurangabad
Dear Sir,
This representation letter is provided in connection with your audit of the financial records and returns under section 61 of the MVAT Act 2002 for the year ended ………….. for the purpose required in it. We acknowledge our responsibility for preparation of financial statements in accordance with the requirements of the Companies Act 1956/ Income Tax Act 1961 and recognized accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India.
We confirm, to the best of our knowledge and belief, the following representations:
a) We have made available to you the Audited/un-audited Financial Statements i.e. Balance Sheet, Profit and Loss A/c with all Schedules/ annexure along with all financial records and related data (including computer generated records) as Per List enclosed.
b) There have been no transactions that have not been properly recorded in underlying accounting records.
c) We have followed the accounting standards and guidance notes of the Institute of Chartered Accountants of India.
d) We have maintained books of accounts and other sales tax related records and registers which reveal correctness and completeness of the returns filed by us.
e) The gross turnover of sales declared in the returns include all the transactions of sales concluded during the year
f) The gross turnover of purchases declared in the returns includes all the transactions of purchases made during the year.
g) The adjustment to turnover of sales and/or purchases is based on entries made in the books of accounts during the year.
h) The deductions claimed by us from the gross turnover of sales, including deduction on account of goods return, claimed in the returns filed by us are as per the provisions of the relevant Act.
i) We have correctly classified the goods sold with rate of tax applicable and computed the sales tax payable as shown in the returns correctly.
j) We have computed correct set-off admissible as per Act during the year
k) Cumulative Quantum of Benefits (CQB) calculation shown by us in the return is correct as per our books
l) Further we have to mention that additional information given in the returns is correct.
m) We are enclosing draft copy of Part II of Form 704 duly filled in.
We acknowledge that we are responsible for the compilation of information in Form No.704. We shall not held you liable, in case we are unable to claim Setoff /deduction /exemption/or if we incur any tax liability on account of any errors /omission/mistakes or any position taken in the Form No. 704, or if anything contained in or omitted from the Audit Report has any favorable impact upon any tax proceedings.
Further we undertake to indemnify and keep you indemnified, in case you suffer or are called upon to suffer, any loss, damage or claim, of any kind or nature whatsoever, arising from your signing the Audit Report under MVAT Act 2002, except where and to the extent that such loss, damage or claim is occasioned by, and is attributable solely to, your gross and willful neglect and negligence.
We the undersigned, confirm that we are authorized to sign this letter of representation on behalf of the company/partnership firm/ proprietary concern.
Yours Faithfully,
For. …………………….
Encl: List of Records
Respected Sirs/Madam,
Please send me all formats of Registers, format of letters with Registrar, Public Notice etc. on my Email for which I will be grateful to you.
Please accept my Best Respect.
Thank you,
Yours faithfully,
Santosh P. Bongale