Presented by B.Ganesh Prabhu

Tax on the value added Consumption Tax No cascading, hence beneficial Easy to administer

 Local Sale - Sales made within the State at different VAT Rate as per the rate mentioned First Schedule.  CST Sale - Sales made outside the State at different rate as per provisions of CST.  Zero Rated Sale – Sales made to SEZ and UN.  High Sea Sale – Goods are to be imported before which the transfer of document to title is handed over.  Export – Sale of Goods to Foreign Country & Penultimate Sale.  Local Sale - Sales made within the State at different VAT Rate as per the rate mentioned First Schedule.  CST Sale - Sales made outside the State at different rate as per provisions of CST.  Zero Rated Sale – Sales made to SEZ and UN.  High Sea Sale – Goods are to be imported before which the transfer of document to title is handed over.  Export – Sale of Goods to Foreign Country & Penultimate Sale.

 Works contract (2% or 5%)  Hotel, Restaurant and sweet stalls (Turnover lesser than Rs. 50 Lacs)  Purchase – within state, Sale – within state – ½% (Turnover lesser than 50 Lacs)  Works contract (2% or 5%)  Hotel, Restaurant and sweet stalls (Turnover lesser than Rs. 50 Lacs)  Purchase – within state, Sale – within state – ½% (Turnover lesser than 50 Lacs)

 How? – Vouching the sales and purchases ledger to check the tax rates and confirm liability.  When? – Before 9 months from the completion of the Financial Year

 Why? - If total turnover of the assesse exceeds Rs. 1 Crore in a year.  Who? – By a Accountant (CMA/CA)  What? – A report submitted mentioning the total sales and purchases along with the taxes paid at various rates, in prescribed format.

Recording of Transactions Payment of VAT Liability Books of Accounts Disclosure of Purchases and Sales Disclosure of VAT Liability and Payment Return Verification of Books Verification of Return Reporting VAT Audit Format

 Annex I  Annex IA  Annex II  Annex III  Annex IV  Annex V  Form J  Form K  All types of purchases  Inter state purchases and transfers  All types of Sales  Reversal of ITC  Import and Export  Excess of ITC to be carried forward  Ineligible ITC Details  Small Dealers (10 Lakhs- 50 Lakhs) and no interstate transactions  All types of purchases  Inter state purchases and transfers  All types of Sales  Reversal of ITC  Import and Export  Excess of ITC to be carried forward  Ineligible ITC Details  Small Dealers (10 Lakhs- 50 Lakhs) and no interstate transactions

Name TIN Address Nature of business

 PART A – Details of books of accounts maintained and verified  PART B – Turnover, Purchase, ITC Reversal, Inter state sales, Input on capital goods, Delay in filing if any, Stock details and ratio analysis are to be disclosed. Part A + Part B = What you audit !!  PART A – Details of books of accounts maintained and verified  PART B – Turnover, Purchase, ITC Reversal, Inter state sales, Input on capital goods, Delay in filing if any, Stock details and ratio analysis are to be disclosed. Part A + Part B = What you audit !!

Reconciliation of Purchase & Sales Computation of VAT & CST Liability ITC Reversal Payment of VAT & CST Filing of Return Reconciliation of Purchase & Sales Computation of VAT & CST Liability ITC Reversal Payment of VAT & CST Filing of Return

 Match the payable with the actual payments  Check the various rates of taxes applied  Verify the returns/forms filed  Disclose the Audit done in Form WW  Preserve such workings  Match the payable with the actual payments  Check the various rates of taxes applied  Verify the returns/forms filed  Disclose the Audit done in Form WW  Preserve such workings

 Improper disclosures in Forms  Rate difference  Wrong classifications  Delayed or Non –Filing  Improper disclosures in Forms  Rate difference  Wrong classifications  Delayed or Non –Filing

1) Reversal of Input Tax Credit on CST Sale – With Form C or Without Form C? 2) Reversal of Input Tax Credit on Stock Transfer? 3) Periodicity of Reversal Quarterly or Monthly? 4) ITC Reversal on Exempted Sale? 5) Sale of Goods to 100%EOU – Outside the State? 1) Reversal of Input Tax Credit on CST Sale – With Form C or Without Form C? 2) Reversal of Input Tax Credit on Stock Transfer? 3) Periodicity of Reversal Quarterly or Monthly? 4) ITC Reversal on Exempted Sale? 5) Sale of Goods to 100%EOU – Outside the State?

6) Sale of Goods less than Purchase Price? 7) Construction Company – Method of Valuation? 8) ITC to be reversed on Free Issues? 9) Zero Rated Sale Vs Exempted Goods? 10) Purchase of Goods from URD? 6) Sale of Goods less than Purchase Price? 7) Construction Company – Method of Valuation? 8) ITC to be reversed on Free Issues? 9) Zero Rated Sale Vs Exempted Goods? 10) Purchase of Goods from URD?

17 B.Ganesh Prabhu Mobile: E- Mail