help
Keshav (chartered accountant) (286 Points)
28 January 2010
hi friends what is the due date for filling E-704 vat audit form.(Maharashtra)
2 Replies
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 28 January 2010
TRADE CIRCULAR
No. VAT/ JC MAHAVIKAS/
Trade Cir. No.27T of 2009 Dated: 1st October 2009
Sub: Filing of Audit Report in Form -704 electronically.
Ref.: 1. Notification No VAT/AMD- 1009/IB/ADM- 6 dated 21st August 2009. ,2. Notification No VAT/AMD-1009/ IB/ADM-6 dated 26th August 2009, 3. Notification No. VAT/AMD-1009- IB/ADM-6 dated 18th June 2009.
Gentlemen/ Sir/ Madam,
The sub-rule (1) of rule 17A of the Maharashtra Value Added Tax Rules, 2005 empowers the Commissioner of Sales Tax to issue notification and to provide the class or classes of dealers required to file various Forms, Declarations, Returns including Audit Report in Form-704 electronically. Accordingly, requisite notification cited at Ref.-l is issued. Further, in view of the provisions contained in sub-rule (2) of rule 17A, a notification cited at Ref.-2 has also been issued substituting Form-704. Therefore, any dealer who files Audit Report on or after 1st October 2009 for any period shall file the same in the new Form-704. Now, it is mandatory for all the dealers who are required to get their books of account audited as per the provisions of the section 61 of the MVAT Act, 2002 to file Audit Report in Form-704 electronically.
2. DOWNLOADING OF FORM -704 FROM WEB-SITE:
(i). In view of the aforesaid notifications, it has been made mandatory for all the dealers who are required to file Audit Report in Form -704 as per the section 61 of the MVAT Act, 2002 read with rule 65 of MVAT Rules, 2005 and Section 9 (2) (A) of the Central Sales Tax Act, 1956 to file Audit Report in Form-704 electronically for the period starting on or after 1st April 2008.
(ii). The template of the new Form -704 is provided on the Web-site of the Sales Tax Department www.mahavat. gov.in at ‘DOWNLOAD>FORMS >FORM-704’. Every dealer to whom the above notification applies shall download the template of the Form -704. It is hereby clarified that only the downloaded template of Audit Report in Form -704 is to be used for preparation of Audit Report.
3. FILLING AND UPLAODING OF FORM -704:
(i). The template of Form -704 is provided at the Department’s Web-site. The said template is in the form of an excel Work Book. The dealer is firstrequired to download the said template and make the offline data entry in all the fields provided in the relevant Excel Sheets contained in the said work book.
(ii). The Excel Sheets are named as Part I, Part II, Sch I, Sch II, Sch III, Sch IV,Sch V, Sch VI, Annex A, Annex B, Annex C, Annex D, Annex E, Annex F, Annex G, Annex H, Annex I, Annex J and Annex K. The Auditor is requested to first fill in the various Annexures provided in the said work book. Theseannexures are linked with the Schedules. After filling the information into these annexures the relevant fields in the Schedules will get automatically filled.
(iii). After filing information into the Annexures, the Auditor should then fill the information in the relevant Schedules. If dealer isrequired to file Form-231 the Auditor should only fill Schedule-I. In this case it is not necessary to fill other schedules contained in PART-3. However, if dealer isrequired to file more than one type of return then the Auditor should accordingly fill the relevant Schedules.
After filling the information into these schedule (s) the relevant fields in the Part I, will get automatically filled.
(iv). After, filling information in the Schedule, the Auditor should then fill the information in PART-I and PART-II. Wherever, the Auditor has given negative certification, for all such certificates the Auditor should enter the reasons for such negative certification In Para-3 of PART-1.
(v). Information in Table-2 and Table-3 should be filled considering the Schedule (s) and Schedule-VI for CST. The Gross Turnover and deductions should match the figures entered into those schedules. Eg. If dealer isrequired to File return in Form-231, then while filing Table-2 the dealer should import the figures for Gross Turnover of Sales, Total allowable deductions etc. from the Schedule-I and Schedule-VI of Part-3. These figures should match.
(vi). In Table-2 of Part-1, row xiv) i.e. differential tax liability for non-production of Form-H, (Annex-H) in this row the Turn-over which pertains to the sales (against Form-H) immediately preceding the Export Sales to thedealers within the State should be entered. In all other cases the sales against Form-H should be given in the Table-3 i.e. said liability under the CST Act (as per Annex-I).
(vii). The Auditor should then fill the Table-5 stating the additional tax liability on account of reasons given therein. In Para-5 the Auditor should briefly give the qualifications or remarks which impact the tax liability. Para-6 contains the recommendations by the Auditor to the dealer.
(viii). After filling the information in PART-1, the Auditor should then fill information in PART-2. This part deals with the general information about thedealers business activities. In this part the dealer is also required to fill the activity codes along with the Turnover of sales and tax liability thereon. These Activity codes are used for the purpose of classification of all Economic Activities comprising primary, secondary and tertiary sectors. TheSales Tax Department has adopted four digit classifications. The activity codes are made available on the Department’s Web-site. If the dealer is engaged in more than one activity, then top six activities on the basis of turn-over need to be mentioned in descending order. One dealer may have more than one activity code.
(ix). The completed Form -704 shall then be uploaded by the dealer using his login Id and password for the e-services. The uploading shall be done on or before the due date prescribed for submission of Form -704 i.e. 31st January 2010. The system shall generate an acknowledgment after successful uploading of Form -704. The dealer should take two print outs of the said acknowledgement. .The acknowledgments shall berequired to be signed by the dealer as well as the auditor and shall bear seal and the rubber stamp of both the dealer and the Auditor.
(x). As the file size of the Audit Report in Form -704 is somewhat big, therefore, the dealer should use the high bandwidtth internet connectivity. Further, in case where the information filled in Annexure-J contains more than 5000 entries then under such circumstances the dealer is advised to use a PC having minimum 2 GB RAM.
4. SUBMISSION OF FORM -704:
(i). The last date of submission of Audit Report in Form -704, for the period 01/04/08 to 31/03/09 is 31 January 2010. The dealers are requested to adhere to this deadline for uploading of Form -704.
(ii). The dealers shall be required to submit “Statement of submission of Audit Report in form -704″ alongwith the statement of submission of Audit Report in Form -704 (in the format enclosed with this Trade Circular) on or before 10 February 2010. The dealers are also required to submit the following documents:
(a) A duly signed copy of an acknowledgment generated after uploading of Form- 704.
(b) Balance Sheet and Profit & Loss Account / Income and expenditure account alongwith the Statutory Audit Report.
(c) In case the dealer is having multi-state activities, the Trial Balance for the business activities in Maharashtra .
(d) PART-I of the Audit Report along with Certification duly signed by the Auditor
(iii). The aforesaid documents shall be submitted, -
(a) to the concerned LTU officer; if the dealer is Large Tax Payer;
(b) to the “DESK AUDIT CELL” in the Office of the Joint Commissioner of Sales Tax (Business Audit) in Mumbai if the dealer is not Large Tax Payer;
(c) in the rest of the State to the concerned LTU officer; if the dealer is Large Tax Payer; and in any other case to the Joint Commissioner ofSales Tax, VAT (ADM).
(iv) It is necessary to upload Audit Report in Form -704 on or before 31st January 2O10 and submit the aforesaid documents on or before 10th February 2010 in order to avoid any penal action under the provisions of the MVAT Act, 2002.
6. In case of difficulties, the dealers are requested to approach the Help Desks specially established to provide technical support to the dealers while filing their Audit Reports in form -704.
7. This circular cannot be made use of for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.
8. You are requested to bring the contents of this circular to the notice of all the members of your association.
Yours faithfully,
(Sanjay Bhatia)
Commissioner of Sales Tax
Maharashtra State, Mumbai.
STATEMENT OF SUBMISSION OF AUDIT REPORT IN FORM-704
I, ____________ _________ _________ , Proprietor / Partner / Director / Authorized Signatory of M/s ____________ _________ _________ holder of TIN 27__________ _________ V/C, hereby certify that the accounts of M/s ____________ _________ _________ holder of TIN 27__________ ________V/ C, have been duly audited for the period 01.04.2008 to 31.03.2009 by ____________ _________ ___( Name of the Chartered Account/Cost Accountant or name of the firm of Chartered Account/Cost Accountant ), under the provisions of Section 61 of the Maharashtra Value Added Tax Act,2002 and have received audit report in form 704 certified by the said _________ ____________ _________ _________ _(Name of the Chartered Account/Cost Accountant or name of the firm of Chartered Account/Cost Accountant).
It is further acknowledged that the said Audit Report has been uploaded by me on the website www.mahavat. gov.in under the Transaction Id_____.
Date :
Place :
Signature with Name and Designation
Encl:-
1. Balance Sheet and Profit 8s Loss Account /Income and Expenditure Account and statutory Audit Report.
2. In case dealer is having multi-state activities the Trial Balance for the business activities in Maharashtra.
3. Copy of the acknowledgment for submission of Form-704
4. Part I of the e-704 duly signed by the accountant as defined under Section 61c of the MVAT Act, 2002 pertaining to the Form-704 uploaded by the dealer. This part comprises of Audit Report and Certification, Computation of tax liability and recommendations by the accountant.
Department of Sales Tax
FORM-704 Acknowledgment
| Sr No | Details | Particulars |
| 1 | Transaction Id | |
| 2 | Date of Transaction | |
| 3 | Name of the dealer | |
| 4 | TIN of the dealer | |
| 5 | Period of Audit | |
| 6 | Name of the Auditor | |
| 7 | Registration No of the Auditor under the relevant statute. |
regards,
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