03 April 2013
Mr Vikas, The VAT audit is generally done to the point of drawing a Trading and Manufacturing a/c.Sales bills,sales register,sales ledger,returns and sales a/c on one part and Purchase bills,register,returns, ledger,and a/c on another part.Stock and work-in-progress evaluation using a standard procedure is to be followed. In an industry manufacturing expenses,labour and overhead and in the case of a works contract site expenses,labour and overhead are to be included in the Trading a/c.Additional items such as,sale of movable and intangile assets,scrap,are to be considered.Filing of returns,calculation of taxable turnover,tax rates applied and the payments made to the govt are to be verified as per rules.....mjk
CAclubindia
