DVAT Audit Report Part-2

Audit Report Under Sec-49 of DVAT Act, 2004

Part-2

Clarity for some points in FAQ Form

1.Applicability of Sec-49, Form AR-1

Q.1.1- For which year is Form AR-1 is applicable, 2011-12, 2012-13 or 2013-14 etc. ?

Ans.- Form AR-1 is applicable applicable for year 2012-13 onwards. For 2011-12 there is no requirement for submission of any report to the department neither report mentioned under Sec-44AB of Income Tax Act nor Form AR-1.

Q.1.2- Which dealers are required to furnish Form AR-1 ?

Ans -   Dealers having turnover of 10 crore or more in year 2011-12 or any following year required to get accounts audited from an accountant and furnish report in Form AR-1 to the department. But dealers exclusively dealing in commodities mentioned in First Schedule and dealers with 100% export turnover are not required to get audit and furnish Form AR-1.

Q.1.3-  What is due date for completion of audit under section 49 ?

Ans -  There is no due date for Audit completion specified in ACT, Rules or Notification. Only due date for furnishing of Form AR-1 is specified and that is 15.11.2013.

Q.1.4- What is the due date for furnishing of Form AR-1 to the department ?

Ans -   As per Notification No.F.7(420)/Policy/VAT/2011/1203-1213 dated 11.02.2013 , dealers need to submit audit report for year 2012-13 in Form AR-1 till 15.03.2013.

2. Calculation of Turnover for applicability of Sec-49, Form AR-1

Q.2.1-  How would turnover ( for the purposes of requirement for audit) of the dealer be calculated ?

Ans -   Turnover (for the purposes of requirement for audit) of the dealer would be calculated as follows :

             Local sale ( sales within delhi)+ Inter-state sale ( including branch transfer/to agent out side delhi)+export sale.

            Taxes (VAT/CST) would not be included, if included then would be deducted. Discount, Freight and cost of installation etc. if shown separately in Invoice would be deducted.

Q.2.2- How would turnover of a dealer, who has offices in different states, be calculated ? For example if any dealer has offices in Delhi and UP and turnover is 9 crore and 5 crore respectively. Then whould dealer be required to furnish AR-1 ?

Ans -  There is not clarity in this point from department side till now. But as per our opinion sale of Delhi offices only would be considered. As in case of return also sale of Delhi offices only need to be shown. So in case of dealer mentioned in example dealer need not to furnish Form AR-1 as turnover of Delhi is 9 crores ( less than 10 crores).

Q.2.3-  How would turnover in respect of deemed sales be calculated, for example in case of works contract ?

Ans -  In case of deemed sales like works contract total contract value must be included in turnover. Any deduction allowable (like for service portion in works contract) would be deducted for calculation of Taxable Turnover.