INTRODUCTION OF VAT AUDIT
In India, VAT Audit is compulsory in all except 4 States, (subject to Turnover limits for the dealers)
Till recently, Delhi was a part of this list. However, the Delhi Government has notified that a Dealer with a Turnover of over Rs. 10 crore has to submit a VAT Audit report. If, in respect of any particular year, the gross turnover of a dealer exceeds sixty lakh rupees or such other amount as may be prescribed, then, such dealer shall submit a report in such manner, form and period as may be notified by the Commissioner.
WHO IS LIABLE FOR VAT AUDIT
S.N.Nature of the Dealer –Based upon TurnoverExemption , if any.
TIME LIMIT AND PENALTY
Audit Report in Form AR?1 to be submitted within Seven and half months from the date of the Financial year.?
As per section 86(18) of Delhi VAT Amendment Act, 2013, in case the dealer fails to comply with the provision of audit, the dealer shall be liable to pay penalty, a sum equal to 1% of his Turnover or sum of one lakh rupee, whichever is less.
CALCULATION OF GROSS TURNOVER
How to Calculate Gross Turnover
Sale within Delhi Taxable under DVAT ACT XXX
Add:?Inter State Sale XXX
Add:? Sale in Course of Import and export including penultimate export XXX
Add:? Stock Transfer from Delhi to Branches/agents in Other State XXX
Add:? Excise Duty (Local and Central) and Custom Duty XXX
Less:? DVAT/CST payable by the dealer .. ( If already included) XXX
Less:? Cost of Freight or delivery separately charged in the Invoice
provided that the ownership of the goods is not transferred at the buyer’s
Less:? Cost of installation separately charged in the Invoice XXX
Gross Turnover XXXX
Points for Discussion –Gross Turnover ?