13 February 2010
Normaly if sales or pur turnover exceed Rs. 40,00,000 the business has came into vat audit.But which turnover above 40,00,000 Gross turnover sales\pur(inclued vat) or net sales\pur exceed Rs. 40,00,000. e.g. If Sales 38,00,000 or Vat 4,00,000 The business will be come under vat audit. ( Which section & rule)
If the turnover exceeds Rs 40 lacs than u have to go for VAT audit. But the exception is also there like the state of west bengal where VAT Audit is necessary when the turnover exceeds Rs 1 Crore. Further the turnover does not include the VAT charged in the sale bill and hence if the turnover is Rs 38 Lacs and the VAT is 4 Lacs than there is no need of VAT audit. Also it will be noted that VAT input and output will be calculated separately otherwise if the same form part of the turnover and where no VAT input or output register is kept than the gross amount will be considered for VAT Audit i.e including VAT charged
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