Audit Report under Sect-49 of DVAT Act,2004
PART-1
Purpose of this blog
Objective of this blog is to discuss and have better understanding about the applicability, provisions, drafting etc. of Audit Report under section 49 of DVAT Act,2004 ( hereinafter called Act) read with Rule 42A of DVAT Rules,2005 (hereinafter called Rules). Audit under section 49 hereinafter will be called DVAT Audit .
Preamble
Under DVAT laws earlier (upto F/Y 2010-11) no separate audit was mandatory for dealers and dealers were required to furnish copy of tax audit report under section 44AB of Income Tax Act,1961. Last date for furnishing such report was 28th January of the following year. Now as per current position dealers having turnover of 10 crore or above need to file audit report under Form AR-1 for F/Y 2012-13 till 15.11.2013.
Provisions regarding DVAT Audit
There are some stages by which existing provisions come into existence. We are explaining provisions applicable period wise: ( Point 1 to 4 are for information of readers only. Readers may skip these points and can go to point 5 directly if not want to know complete provisions history)
1.Period before 26.01.2012: Dealers having turnover more than 40 lakhs needs to furnish report as mentioned under Sec-44AB of Income Tax Act,1961 upto 28th January of following year. These provisions were applicable for year upto 2010-11. Penalty for non furnishing of Audit report as mentioned was Rs.10,000/-.
2. Period from 26.01.2012 to 17.06.2012: Dealers having turnover more than limits prescribed under Sec-44AB of Income Tax Act needs to furnish report as mentioned under Sec-44AB of Income Tax Act,1961 upto 28th January of following year. These provisions were applicable for year upto 2010-11. Penalty for non furnishing of Audit report as mentioned was Rs.10,000/-.
3. Period from 18.06.2012 to 10.02.2013: Dealers having turnover of more than 60 lakhs or other amount as may be prescribed needs to furnish report in manner, form and period as may be notified by the commissioner.Penalty for non furnishing of Audit report as mentioned was Rs.10,000/-.
4. Period from 11.02.2013 to 29.03.2013: By notification No.F.7(420)/Policy/VAT/2011/1203-1213 dtd. 11.02.2013 Form AR-1 has been notified for dealers having turnover of 10 crore or above for year 2012-13. So for 2011-12 no form has been specified and no need to submit any report. For others (dealers having turnover more than 60 lakhs but below 10 crore) notification was awaited. Also exemption is given to some dealers having 100% exempted sale ( will be discussed in details in following paragraphs).
Dealers having turnover of more than 60 lakhs or other amount as may be prescribed needs to furnish report in manner, form and period as may be notified by the commissioner.Penalty for non furnishing of Audit report as mentioned was Rs.10,000/-.
5. From 30.03.2013 : By notification No.F.7(420)/Policy/VAT/2011/1203-1213 dtd. 11.02.2013 Form AR-1 has been notified for dealers having turnover of 10 crore or above for year 2012-13. So for 2011-12 no form has been specified and no need to submit any report. For others (dealers having turnover more than 60 lakhs but below 10 crore) notification was awaited.Also exemption is given to some dealers having 100% exempted sale ( will be discussed in details in following paragraphs).
Dealers having turnover of more than 1 crore needs to furnish report in manner, form and period as may be notified by the commissioner.Penalty for non furnishing of Audit report is revised wef 01.04.2013 and new penalty is 1% of turnover or Rs.1,00,000/- whichever is less.
So as of now final position is that dealers having turnover of 1 crore or above shall get his accounts audited and submit report in such manner, form and period as may be notified. For dealers having turnover of 10 crore or above Form have been notified ( Form AR-1) and need to be submitted till 15.11.2013. For dealers having turnover more than 1 crore and less than 10 crore notification (for format, manner and period) is still awaited.
Who can be an auditor
A Chartered Accountant, A cost accountant, a person entitled to be appointed as auditor under Sec-226 (2) of the Companies Act,1956 or a person referred to in Sec-619 of the Companies Act,1956.
