Govind Inani (Business) (203 Points)
25 April 2010An assessee commenced his manufacturing unit in F.Y. 2008-09.
In F.Y. 2008-09 his sales came to Rs 30 lakhs and purchase came to Rs 25 lakhs. But he purchased machinery of Rs 78 lakhs in this year.
Whether this assessee comes under the umbrella of vat audit as per Gujarat Vat Act?
smita Rathore
(CA)
(27 Points)
Replied 11 February 2011
If either of sale or purchase is Rs. 500001 or more AND taxable sales of Rs. 10001 or more during the year, then such a person is considered as a "dealer" under G VAT and falls in the jurisdiction of G VAT.
About VAT audit, if the turnover of sale or purchase is more than 1 crore, then VAT audit is required to be done.
Here, in your case, the purchases cross the threshold limit, i.e. 25 lakhs+78lakhs = 103 lakhs~1.03 crore. To be noted, machinery is "Capital Good" and is included in goods.
So, the assessee is liable to G VAT audit.
Hope, i've helped you a bit.
Njoy. ;)
chetan.d115
(accountant )
(22 Points)
Replied 04 May 2012
CAclubindia
