IS CA THE ONLY PERSON FOR SIGNING ON VAT ADIT REPORT?

21. The Maharashtra Value Added Tax was enacted

pursuant to a decision to introduce VAT system in

the country. An empowered committee of Finance

Ministers was appointed. As noted by the Supreme

Court there can be no denial of the fact that

Chartered Accountants have the expertise in the

matter of accounts. What Section 61 requires is

that the dealer must get the accounts audited and

produce the report of such audit alongwith the

certifications that may be prescribed. This

certificate has nothing to do with the provisions of

Section 22 of the Act. Section 22 is a special

power conferred on the Commissioner for selection of

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dealers for audit. The entire object of the Act is

maintenance of proper accounts by the dealers and

certification of the accounts so that the books are

in order and there is no fraud considering what is

required by form 704. Inspite of certificate issued

by the Accountant, Section 22 empowers the

Commissioner to carry out special audit. It is not

that on obtaining certificate under Section 61 the

authorities are precluded from going through the

Accounts. Under section 22, it can still order an

audit and arrive at the conclusion that the accounts

have not been properly maintained. The scheme of

the Act requires the dealer to maintain accounts

under Section 63. These accounts have to be kept by

every dealer liable to pay tax under this Act.

There is no restriction as to who can write these

accounts. Next is Section 61 as now amended and the

explanation. This requires audit to be done and the

certificate to be issued only by a Chartered

Accountant and or Cost Accountant. Section 22 is a

special power in the Commissioner to direct an audit

even if an audit was earlier done and certified by a

Chartered Accountant or a Cost Accountant.