05 February 2011
All the experts are requested to put light on this matter urgently: We are statutory auditors of a Pvt. Ltd. Company ( sales above 35.00 crores).
Now the co is taking wrong credit in VAT on capital goods & is also not paying VAT on sale of old ("Kattran" )raw materials (about 20.00 lakhs each year.)
We know that this is clearly violation of law. PLEASE TELL ME WHAT ARE THE LIABILTY OF US AS A STATUTORY AUDITORS . PLEASE ANSWER WITH SUPPORTING IF POSSIBLE SINCE I HAVE TO PROVE THE ANSWER.
05 February 2011
If you feel as per law they have voilated the provisions of law then quantify the tax liability. If it is probabale that liability will arise in future, you can ask for making the provision in the books of accounts.
CAclubindia
