ALL ABOUT TNVAT AUDIT
Every registered dealer whose turnover including zero-rate sale and sale in the course of inter-state trade or commerce as specified in Section 3 of the Central Sales Tax Act, 1956 in a year, exceeds one crore rupees shall get his accounts audited by an Accountant and submit the report to the Assessing authority within the stipulated time.
This audit requirement is not applicable to the following :-
(i) Departments of Central & State Governments,
(ii) Local Authorities
(iii) The railway administration as defined under the Railways Act, 1989
(iv) Tamilnadu State Road Transport Corporations and
(v) Similar such dealers, as may be notified by the Government.
The Form of audit report shall be Form – WW. This form shall be prepared,signed and certified by Accountant , in duplicate , and shall be submitted to the Assessing Authority.
TIME LIMIT FOR AUDIT
The last date for filing TNVAT Audit Report is 9 month from the end of the year. (ie) 31st December every year. (Previously, the time limit for submission of audit report was 7 months from the end of the year). (ie.,) For the year ended 31st March 2013, the Report shall be submitted on or before 31st of October 2013.
WHO CAN DO THE AUDIT
A Chartered Accountant as defined in the Chartered Accountants Act, 1949 or a Cost Accountant as defined in the Cost and Works Accountants Act, 1959 can conduct the audit.
WHAT ARE THE ACCOUNTS/RECORDS TO BE MAINTAINED AND AUDITED
v Purchase Account
v Sales/Stock Transfer account
v Production cum stock account
v Stock Register
v Input tax adjustment account showing opening balance, claim during the period, output tax, adjustments,reversals,etc.,
v Capital Goods input tax adjustment account
v Record of sales through agents
v Record of purchases/goods received for sale from principal
v Certificate of Industrial Inputs
v Register of Certificates Issued
v Register of Certificates received
v Register of delivery notes
v Cash book
v Bank book
v General Ledger
HOW TO CALCULATE THE TURNOVER
Turnover for VAT audit includes .
– Taxable Turnover
– Zero rated sales
– Exempted Sales
– Inter state sales
– Purchases turnover assessable to tax u/s. 12 of TNVAT Act (purchases from unregistered dealers)
– Sale of Capital Goods (Example-Sale of Car by the assessee)
– Value of Stock Transfer (outward)
WHAT HAPPENS IF ANY DEALER FAILS TO SUBMIT AUDIT REPORT
If any dealer fails to get his accounts audited and submit a report of such audit within the prescribed period, the registered dealer will be required to pay a sum of Rs. 10000/- as penalty in addition to any tax payable, in respect of the said period. The assessing authority also has got the powers under the act to compel the dealer to submit the audit report.
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