Today we are discuss on procedure to be adopted for Vat audit in Maharashtra, documents required for Vat audit in Maharashtra, Form to be filled up for Vat audit in Maharashtra.
Which Form required for Vat audit in Maharashtra.
Form 704 will be required to fill and uploaded for Vat audit in Maharashtra.Go to mahavat.gov.in and dowload the forms.
PROCEDURE FOR FILING THE FORM 704
Form 704 Contains following Parts:
- Letter of Submission
- Part-I
- Part-II
- Schedule-I
- Schedule-II
- Schedule-III
- Schedule-IV
- Schedule-V
- Schedule-VI
- Annexure-A
- Annexure-B
- Annexure-C
- Annexure-D
- Annexure-E
- Annexure-F
- Annexure-G
- Annexure-H
- Annexure-I
- Annexure –J-Sec 1
- Annexure –J-Sec 2
- Annexure –J-Sec 5
- Annexure –J-Sec 6
- Annexure-K
Now we are going to discuss on each parts of Form 704:
- Letter of Submission:
Letter of submission is a statement submitted to the sales tax department after online filling of VAT Audit form 704. This letter contains the Name, Tin No. of assessee, period for which VAT Audit form 704 is filled. It also contains the the name of the person who has uploaded the VAT Audit form 704, Date of uploading, place from where uploaded, mobile No., E-mail id. This Statement also contains the recommendations of the auditor which was accepted by the dealer & if the recommendations are not accepted then the reason for the non acceptance. - Part-I under Mvat audit:The Part-I of the VAT Audit report contains the location of the sales tax office under whose jurisdictions place of business of assessee established. It contains the confirmation of Chartered Accountant who has audited the Tax Audit of assessee if applicable with Tax audit date. It is basically divided into five tables:
(I). Table 1: Table 1 require the basic information about Vat return of the dealer like periodicity of VAT return, whether properly filled or not, Whether dealer has mainted stock register or not, whether return under CST Act filled or not.
In this we have to select which schedule & Annexure is applicable for assessee & if we provide any negative remarks then reason for the same is to be given.
(II). Table 2: In this table we have to fill the information relating to Sales affected in Maharashtra & the tax payable on the same.
(III). Table 3: In this table we have to fill the information relating to sales affected outside Maharashtra & the tax payable on the same.
(IV). Table 4: In this table we have to fill the Cumulative quantum of benefits availed.
(V). Table 5: In this table we have to fill the classification of additional dues with calculation of tax & interest thereon.
In all the above table we have to write both the amount means amount as per return & amount determined as per auditor , and difference between the both is self calculated.
At the end of Part-I , the details regarding the Chartered Accountant/ Cost Accountant are given. The following information about the Chartered Accountant/ Cost Accountant
Are given: Name of the Auditor, Membership No., Name of Auditing Firm, Regs. No. of Auditing firm, Address, Mobile No. & Email Id. Date of signing audit report is also required to be mentioned here.
- Part-II under Mvat audit:
Under this Auditor is require to file the General information about the dealer business activities like email id, Mobile, Landline no., PAN of the dealer, Name of dealer, Trade name of dealer( if any), Address of the dealer, Additional place of business of dealer if any.
In this auditor has to specify the no. of division or units where books are separately kept.
Auditor has to provide the information related to registration under other acts like P.T. Act.
Auditor has to also specify the Commodity in which dealer deals with the schedule entry of the same, name of the accounting software, Whether there is change in valuation of stock, product line, accounting software or any other changes.
Auditor has to select the nature of business, Constitution of business, Working capital employed, Activity code , Particulars of Bank Accounts etc.
Schedule and Annexure under Maharashtra Vat Audit(Mvat Audit)
- Schedule-I: First auditor has to select whether schedule-I is applicable or not. In this schedule auditor has to fill all the information relating to taxable sales & purchase inside the Maharashtra state like taxable sales, Output tax, Taxable purchase, Input credit, Set off available etc.
- Schedule-II: Auditor has to first select whether this schedule-II is applicable or not. This schedule is applicable for the dealer who opt. for composition scheme. In this schedule auditor has to fill all the information relating to taxable sales & purchase like taxable sales, Output tax, Taxable purchase, Input credit, Set off available etc.
- Schedule-III, IV & V: The schedule III, IV & V are not generally used. These schedules are used when there is exemption, Eligibility no., Benefits etc.
- Schedule-VI: First auditor has to select whether schedule-I is applicable or not.In this schedule auditor has to fill all the information relating to taxable sales & purchase outside the Maharashtra state like taxable sales, Central Sales tax.
- Annexure-A:In this annexure auditor is required to fill the details of amount paid along with the returns and or challan corresponding to Schedule I/II/III/IV/V under MVAT Act, 2002.
Information relating to payment like period of return for which payment made, original return due date of payment, type of return, Amount of tax Paid, Date of Payment, Amount of interest paid. Amount of interest on delayed payment is automatically calculated. - Annexure-B:In this annexure auditor is required to fill the details of amount paid along with the returns and or challan corresponding to Schedule VI under CST Act.Information relating to payment like period of return for which payment made, original return due date of payment, type of return, Amount of tax Paid, Date of Payment, Amount of interest paid. Amount of interest on delayed payment is automatically calculated.
- Annexure-C:In this annexure auditor has to fill the details of Tax Deducted at source (TDS) Certificates received in relations to sales made.Information relating to name, Address, Tin No.(if available) of the employer deducting the tax, Date of certificates, Amount of TDS as per certificate are filled. In this annexure amount are entered in a descending order.
- Annexure-D:In this annexure auditor has to fill the details of Tax Deducted at source (TDS) Certificates issued in relations to purchase made.Information relating to name of the dealer, TIN No. if not applicable then PAN No. , Turnover on which TDS made, Amount of tax to be deducted, Amount of tax deducted, Interest payable if any, Amount paid is to be filled.In this annexure amount are entered in a descending order.
- Annexure-E: Auditor is required to fill the information relating to computation of set-off claim on the basis of tax paid on purchases. It is divided into six section:
- Section 1: Total tax paid & URD purchase effected from local supplier during the period under audit (including capital assets) and total purchase tax paid.
- Section 2: Details of tax paid purchase on which set off is not admissible U/R. 54 (out of section 1).
- Section 3: Details of tax paid of capital assets on which full set-off is available (out of section 1).
- Section 4: Details of tax paid purchases on which set-off is admissible after reduction under rule 53.
- Section 5: Details of total tax paid purchases effected from registered dealers on which full set-off is calculated & allowed as per rule 52,52A & 55B.
- Section 6: Amount of total set-off available to dealer.
- Annexure-F:In this auditor has to fill the financial ratios & information relating to current & previous year.Auditor is required to to fill the Gross profit Ratio , Net profit ratio etc.Auditor is also required to fill the opening & Closing stock , Gross turnover of sales & Purchases, Gross receipts etc.
- Annexure-G: Auditor is required to fill the information relating to all the forms received in course of sale like C Form, E-I form, E-II form, F-form, Local H-form, OMS H-form, I-form & J-form.
Information relating to these forms like Name of the dealer who has issued the certificates, TIN/RC no., Declation or certificate type, Issuing state, Declaration no., Gross amount as per invoice, covered by declaration (net of goods returned), Amount for which declaration received is to fill. - Annexure-H:In this annexure details relating to declarations or certificates (in local Form-H) not received is to fill. Information like name of the dealer who has not issued the declaration or certificate, Tin no. if available, Invoice no, Date of invoice, Taxable amount(net), Rate of tax applicable(local rate), Tax liability is to filled.
- Annexure-I: Auditor is required to fill the information relating to declaration or certificates not received (other than local Form-H) under central sales tax Act, 1956. Information relating to name of the dealer who has not issued the declaration or certificate , CST TIN if any, Declaration or certificate type, invoice no., invoice date, Taxable amount (Net), Tax amount, rate of tax applicable(local rate) is fill. Amount of tax & differential tax liability is automatically calculated.
- Annexure_J_sec 1: In this annexure auditor is require to fill the information relating to Vat sales like TIN no. of the customer, net taxable amount, Vat Amount. Gross total is automatically calculated. The total of VAT amount should be equal to Total tax liability. In this annexure amount are entered in a descending order.
- Annexure_J_sec 2: In this annexure auditor is require to fill the information relating to Vat Purchase like TIN no. of the customer, net taxable amount, Vat Amount. Gross total is automatically calculated. The total of VAT amount should be equal to Total Set-off amount. In this annexure amount are entered in a descending order.
- Annexure_J_sec 5: Auditor is required to fill the details relating to customer wise transaction of direct export & high seas sales under CST act, 1956.Information relating to name of customer, Tin no. of customer (if available), transaction type, gross total, major commodity is fill. In this annexure amount are entered in a descending order.
- Annexure_J_sec 6: Auditor is required to fill the details relating to Supplier wise transaction under CST act, 1956.Information relating to name of Supplier, Tin no. of customer (if available), transaction type, any other cost of purchase, gross amount is fill. In this annexure amount are entered in a descending order.
- Annexure K: This is the last annexure of VAT Audit Form-704. In this annexure auditor is required to fill information relating to determination of gross turnover of sales & purchase along with reconciliation with profit and loss account , trial balance sales & purchase register.
How to Upload the Vat Audit in Maharashtra
Go to mahavat.gov.in
Log in to Your accounts
Upload the Form 704
