14 November 2007
A proprietory concern is involved in providing technical labour, technical consultancy as well as sales. It is subject to tax audit under Income Tax as its gross collections from all the three sources taken together exceed Rs 40,00,000 . However amount of sales is hardly around 50000/-. Would it be subject to VAT audit?
15 November 2007
under vat regulations , the criterion for vat audit are as follows Audit of Account: Every dealer having a turn over of over Rs. 40.00 lacs would be required to get his account audited by a Chartered Accountant and submit the audit report within the stipulated time. Failure to do so would attract penalty proceedings. SO TURNOVER BUT NOT GROSS RECEIPTS IS THE CRITERION FOR VAT AUDIT. TURNOVER UNDER APVAT 2005 IS DEFINED UNDER SEC 2 DEFINITIONS CLAUSE 39 AS FOLLOWS "AGGREGATE OF SALES PRICES OF ALL GOODS EXEMPTED OR TAXABLE SOLD AT ALL PLACES OF BUSINESS OF DEALER IN THE SATE..........." SO YOU ARE NOT LIABLE FOR VAT AUDIT . YOU MAY REFER TO THE RESPECTIVE STATE VAT ACT LIKE THE AP VAT ACT 2005 REFERRED BY ME ABOVE .BY AND LARGE THE DEFINITIONS WILL BE SAME. R.V.RAO
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