by ca m b abhyankar - taxguru.in · this is a statement of tax liability under the mvat & cst...
TRANSCRIPT
MVAT AUDIT 2013Approach & Important Issues
25TH November, 2013
By
CA M B Abhyankar
1CA M B Abhyankar
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Applicability of audit under MVAT Act, 2002
• To whom audit is applicable?As per Section 61(1) of the MVAT Act, 2002, audit is applicable to
• A dealer who is liable to pay tax and his turnover, either of sales orpurchases, exceeds Rs. 60 Lakhs during the Financial Year
• A dealer who holds a Liquor license in Form PLL, BRL, E, FL or CL.
• Who is a Dealer?Sub section 8 of Section 2 defines a dealer as a person who buys or sells goodsin the State of Maharashtra for commission, remuneration or otherwise in relationto his business
• When a Dealer is liable to pay tax?Any dealer becomes liable to get registered and to pay tax if his turnover oftaxable goods sold or purchased during FY exceeds Rs. 10000 and turnover ofall sales exceeds
• Rs. One Lakh, if he is an importer• Rs. Five Lakhs if he is not an importer
• Besides any person who has voluntarily registered under this Act is also a dealerliable to pay tax.
• Any dealer who becomes liable to pay tax, continues to be so liable till hisregistration is duly cancelled.
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Basic Provisions
• Who can conduct Audit?
Practising CA/ICWA alone can be appointed as Auditor for auditunder MVAT
• Form & Time Limit for submission of Audit Report
Audit report has to be submitted by the Dealer in Form No. 704within nine months and fifteen days from the end of the year towhich the report relates – Rule 65 & 66
Due Date for FY 2012-13 is 15.1.2014
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Basic Provisions
• Penalty for Non-filing of Audit Report
• The responsibility of submitting the audit report to the SalesTax Department is of the dealer and not of the CharteredAccountant.
• For non compliance (including submitting an Incomplete AuditReport), Dealer can be charged penalty equal to 0.1% ofTurnover of Sales or Purchases and can be prosecuted forimprisonment for 6 months
• However , in view of proviso to section 61(2), no penalty underthis sub-section shall be imposed, if the dealer files the auditreport within one month after the aforesaid prescribed due dateand proves to the Commissioner of Sales Tax that the delaywas on account of factors beyond his control.
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Audit Appointment and Engagement
• No procedure is laid down for appointment of VAT Auditor under theMVAT Act.
• A CA/ICWA working as Tax Consultant for the Dealer or Statutory Auditorof the dealer can also conduct MVAT Audit u/s 61. But an internal auditorof the dealer cannot conduct VAT Audit as VAT Audit is an audit underStatute.
• There is no ceiling on number of MVAT Audits
• The VAT Auditor should obtain from the dealer a letter of appointment forconducting the VAT audit. The letter of appointment should also specifythe remuneration of the VAT auditor.
• If there is change of Auditor, new Auditor should first communicate withthe previous auditor, before accepting the appointment.
• A dealer can appoint two or more chartered accountants as joint auditorsfor carrying out the VAT Audit.
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Approach to VAT Audit
• Entire system of VAT is based on self-assessment by a Dealer.
• Tax liability is calculated and paid by the tax payers throughtheir periodical returns.
• As an essential cross check however, statutory provision hasbeen made for verification of returns by an independent auditorin minute details by going through the books of accounts andalso by analysing and interpreting the provisions of the StateVAT Laws.
• A certification at the end of audit, as to whether therewas any under-assessment made by the dealer requiringadditional payment or whether there was any excesspayment of tax warranting refund to the tax payer, istherefore an important element of VAT administration.
6CA M B Abhyankar
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Approach to VAT Audit
Format of Audit Report gives an impression that Audit is like aVirtual Assessment,
Consisting mainly of• Verification of correctness of returns filed• Verification of sales and tax liability & potential liability
on account pending CST declaration forms• Verification of purchases• Computation of set-off / input tax credit• Verification of branch transfers and F forms• Verification of compliance, viz filing of returns• TDS on works contracts• Finally leading to Determination by the Auditor, of differential
liability or refund for a Dealer.
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Approach to VAT Audit
• Audit Report in Form 704 is divided into ThreeParts namely
Sr.No.
Part Particulars
A Part -1is related to verification and certification,computation of tax liability and recommendations tothe dealer
B Part -2is related to general information about the dealerunder audit.
C Part -3 is about the various Schedules and Annexures
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Considerations for the preparation of Report
• Where the returns are correct and compete and there are nomaterial defects in the turnovers reported and liabilitydetermined, Unqualified Report can be given by the Auditor.
• In other cases a Modified Report can be given by an Auditor .Relevant Para Numbers from Part I need to be used for givingapplicable qualifications and remarks of the Auditor.
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Getting Started
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1) Understanding the Business
Auditor should acquire full knowledge of the client’s business and policiesThis involves understanding /knowing:
a) the nature of businessb) the nature of its productsc) the processes involved in manufacture, production and ascertaining
whether any part of the work is to be sent out of the entity for furtherprocessing
d) key personnel involvede) Events and risks that may have an impact on the audit report
transactions of related parties that are material to the financialstatements. The auditor should obtain sufficient audit evidence in thisregard accounting and internal control system of the dealer
f) Effect of a CIS environment on the audit. The auditor should havesufficient knowledge of the CIS to proceed with the audit.
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2) System based Sales Tax Record
• Sales tax primarily relates to sale and purchase of goods.
Auditor should therefore advise the dealer that system for datacaptured in the financial accounts should be so designed that itidentifies each and every transaction of sale and purchase ofgoods recorded in the books of accounts according to theirrespective meanings under sales tax law.
This will ensure linkage between accounting data and returns tobe filed under sales tax and will make the sales tax complianceeasier for the tax payer.
From sales tax point of view sale and purchase turnover forMVAT/CST includes most of the charges relating to goods up todelivery except insurance and installation.
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Following Statements need to be compiled for thepurpose of Form 704
a) Consolidation of Monthly Returns, along with details of
taxes paid.
b) Sales and Purchase Summaries as per respective Registers.
c) Soft copies of above registers in Excel Format (if possible)
d) Files of Sale and Purchase Bills organized in the order of
entries made in the Sale and purchase Registers, so that
some of these can be easily verified at random during
MVAT Audit.Continued ……
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Continued ……
e) Statement of Debit and Credit Notes raised after close of the year.
f) Statement of Addition and Deletion in respect of Fixed Assets,& a note on whether and how these transactions are covered bySale and Purchase Registers.
g) Computation of Revised GTO of Sales and Purchases as per Register,Credit Notes and Statement of Movements in Fixed Assets
h) Reconciliation of Sales and Purchases with Profit and Loss Account.
i) Details of Other Income to prove that all income from sale of goodsis covered by Revised GTO of Sales.
j) Details of Expenses (Other than Purchase of Materials) such asPrinting and Stationery, Repairs and maintenance, Misc. Exps.etc to prove that all purchases of goods ate covered by RevisedGTO of Purchases.
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k) Statement of Invoices in respect of inter state sales madeagainst concessional forms such as C, E1/E2, F, H,I etc.,along with details of Forms received from customers forsuch invoices.
l) Statement of Export Sales showing Bill of Lading &Shipping Bill details
m) Statement showing Set Off Available based on RevisedGTO or purchases
n) Statement showing Reconciliation of Net Tax Due as perStatement of Consolidation of Returns and as perRevised GTO of Sales and Purchases.
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Form 704
A] Letter of Submission of Audit Report in Form 704 :-
This is a statement of tax liability under the MVAT & CSTActs as per the auditor and the dealers acceptance of theamounts given by the auditor thereon.
In addition under changed format, details of Challansthrough which liability accepted by the dealer is paid is alsoto be given as a part of Letter of Submission
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B] Part I:-
It is related to Audit Report, verification and certification,computation of tax liability and recommendations to thedealer:-
1. Part 1 of Form 704 is a Certificate given by Auditor oncertainpoints affecting compliance and calculation of correct taxliability of the Dealer.
2. Reporting under Part 1 is for entire business of the dealerand specific observations for aspects of compliance andcalculation of tax liability are covered under Part 3.
3. Conclusions reported under this Part are based onworkings given under Part 3, and hence a link betweenthese two Parts must be closely monitored while preparingthe Report. Any mismatch between information providedunder these 2 Parts can create problems for the Auditor.
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i) In Para 5, auditor has to give qualifications or remarks having impacton the tax liability based on additional dues as per Para 4 – Table 5.
j) In Para 6, auditor has to give any of the following recommendations to
the dealer based on the audit findings:-
Sr.No.
ParticularsMVAT (Rs.) CST (Rs.)
i) Pay additional tax liability
ii) Pay back excess refund received
iii) Claim additional refund
iv) Reduce the claim of refund
v) Reduce tax liability
vi) Revise closing balance of CQB
vii) Pay interest under-section 30(2)
viii) Pay interest under-section 30(4)
k) In Part – I, After Para 6 – Now, there is a specific column for Auditor’sSignature, Name of the Firm and Firm Registration Number. Besides Mobile,now Landline number of the Auditor is also required to be mentioned in theNew 704.
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The audited figures of turnover of sales, purchases and set-offcalculation to be given under the above applicable schedules
shall be based on the following points of consideration :-
A) Verification of Sales under MVAT Act, 2002
Sales Tax is a tax on sale of goods and hence gross tax liability for anydealer emerges out of sales.
Gross Turnover of Sales as per Sales Tax Includes:-a) Freight, packing forwarding and insurance (subject to different provisions under
MVAT & CST Acts for sale price)b) Works Contracts and Leasesc) Local, Inter-State and Export salesd) Branch Transfers outside the State of Maharashtrae) Transit Sales u/s. 6(2) of CST Actf) Sales tax or VAT whether charged separately or notg) TDS deducted by customerh) Sales of Capital Assetsi) Miscellaneous disposals of goodsj) Debit Notes for reasons other than Goods Returns
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Excludes:-
a) Recoveries of APMC, Service tax
b) Cost of labour and services for Works Contracts
c) Payments to sub-contractors in certain cases
d) Interest on HP transactions
e) Goods returns within 6 months from date of sale
f) Credit Notes for reasons other than Goods Returns
Key legal provisions affecting determination of Sales Turnover
Sale means a sale of goods made within the State for cash or deferred paymentor other valuable consideration but does not include a mortgage, hypothecation,charge or pledge; and the words “sell”, “buy” and “purchase”, with all theirgrammatical variations and cognate expressions, shall be construedaccordingly.
The term ‘Goods’ includes all movable property
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Importance of correct classification
Calculation of tax liability requires correct rates of tax to be considered appropriate to thegoods sold. The rates of tax are laid down in Schedule A to Schedule E of the Act.
Schedule A is for exempt goods and Schedule C is for goods attracting concessional rateof 4%/5%. Schedule E is for residual goods which attract 12.5% rate of tax.
Section 7 states that the packing material of any goods sold shall be taxable at the samerate that is levied on the goods so packed.
Valuation of OMS Branch transfers forming part of GTO is very critical because it has animpact on calculation of Set off.
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Points to be considered while vouching of sale bills are summarised asfollows:-
a) If movement of goods is Inter-state, Check whetheri. Movement of goods from one state to another normally attracts CST rate of 2%
(C form) or Schedule Rate in the absence of C Form.ii. Movement of goods from one state to another (Deemed export) - CST 0% (H
form)iii. Movement of goods from one state to another – Stock Transfer (F-form)iv. Movement of goods from outside the country (Physical Exports) – NIL tax.
(Verify shipping bill & bill of lading)v. Sale to SEZ – Nil tax (Form I).vi. High Seas Sale – Sale in the course of import – Verify Bill of lading duly
endorsed in the name of the Customer and High Seas Sale Agreementmentioning P.O. No. of the Customer.
b) If movement of goods is Intra-state (within the state)i. Check whether MVAT is Charged as per Schedule Rate or not . This is
because there are no concessional form sales under VAT regime.ii. If goods are sold in the course of export (deemed export within the state) MVAT
0% (Verify Purchase Order of Customer) and proof of exports from Customer.
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Contentious Issues
• Denial of Exemption for In Transit Salesand Branch Transfers
• Certain sections of Department have drawn adverse inferences from the recentSC Judgment in A&G Projects & Technologies Ltd Vs State of Karnataka[(2008) VIL 40 SC] Case, in the matter of exemption of In Transit Sales, wheredespatch of goods has been done from Maharashtra
• As for facts of SC case, the appellants were engaged in the execution of divisibleworks contract in Karnataka and were registered under the Karnataka sales taxlaws.
• There were three contracts relating to the procurement and supply ofequipment. These were the contract for supply of equipment between theappellants and the ultimate customer, the contract between the appellants andthe sub contractor located outside Karnataka and, finally, the contract betweenthe sub contractor and the manufacturer of the equipment. These threecontracts were before the Supreme Court.
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• Appellants argued before the assessing authorities that there were threedifferent sales transactions. The first one was the sale of equipment by themanufacturer of the equipment to the sub contractor and the second and thirdsales were sales of the equipment by the sub contractor to the appellant andthereafter by the appellants to the ultimate customer. First sale was an inter-State sale and the subsequent two sales were interstate sales and were alsoeligible for exemption from tax for subsequent or in transit sales under therelevant Section 6(2) of the CST Act.
• The assessing authorities in Karnataka rejected this claim for exemption for thesubsequent sales under the Act and held that all three sales were sales underSection 3(a) of the Act, and not under Section 3(b) of the Act, because all 3sales contracts were made before inter state movement of goods and hence theexemption from tax for in transit sales under Section 6(2) was not applicable
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• Besides rejecting the exemption from central sales tax on the aforesaid basis,the assessing authorities also invoked the provisions of Section 9 and theproviso thereto, regarding levy and collection of the central sales tax, to holdthat such second and third sales would be taxable in Karnataka State and not inthe State from which the goods originated as per the first sale, Tamil Nadu inthis instance.
• The matter was thereafter litigated in stages in appeal and finally went to SC fordecision.
• Supreme Court held that the dividing line between sales under Section 3(a) andthose under Section 3(b) was that in the former case the inter State movementof goods happened because of the contract of sale whereas the sales underSection 3(b) were those where the contracts came into existence after thecommencement of movement of goods.
•
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• The apex Court held that Section 6(2) relating to exemption from tax for intransit sales was only applicable to those sales which qualified under Section3(b), as sales effected by a transfer of documents of title.
• Since, in the instant case, the subsequent sales were also sales under Section3(a) in that they also occasioned the movement of goods from one State toanother, the benefit of exemption from tax was not available at all underSection 6(2). The Court then proceeded to hold that the appropriate State thatcould consequently charge such subsequent inter-State sales to tax was theState from where the goods originated during their movement from one State toanother, as per the first sale. The Supreme Court held that since all three salesin question were Section 3(a) sales, the proviso to Section 9 would not apply inorder to enable Karnataka State to tax these subsequent sales. Accordingly, theSupreme Court held that Tamil Nadu alone could tax all three sale transactions.
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• Judgment therefore establishes a principle that if subsequent sales contractswere in place prior to the commencement of the inter-State movement ofgoods, such subsequent sales could not be Section 3(b) sales at all andaccordingly they would not qualify for the exemption for in transit sales, asenvisaged in Section 6(2) of the Act.
• A subsequent inter state sale can get covered under either Section 3 (a) or 3 (b)
• Only if a subsequent inter state sale is covered under Section 3 (b), it is entitledfor exemption under Section 6(2), subject to certain conditions.
• For a subsequent sale not entitled for exemption under Sec 6(2), AppropriateState for the payment of tax will be, State from which movement of goods hascommenced if the subsequent sale is covered by definition given under Sec 3(a)or a State from where such subsequent seller, if registered under the CST Act,could have obtained C Form declaration, if a sale is covered under Sec 3(b).
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• Though judgment in the A&G Projects case appears to lay down differentprinciple in respect of subsequent sale, actually it reiterates the principle ofmutual exclusivity for application of Sections 3(a) and 3(b), as laid down underTata Steel Case. In the Tata Steel case, the court was required to examine thevery applicability of 3(a) or 3(b) to answer the question raised before it.
• The court in that case observed that the literal construction of the two clauseswould often overlap (that is, both the situations can coexist), which was not theintention of the legislature and hence one has to narrow down the constructionof these two clauses so as to make them mutually exclusive. The court thenpropounded a ‘carving out’ theory to establish mutual exclusivity by laying downthe principle that ‘where a transaction of sale is covered by both the clauses, ithas to be held to fall under clause (b)’ i.e., ‘in overlapping situations, clause (b)prevails over clause (a)’.
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• Hence, this principle laid down by the Supreme Court in 1960 gave birth to thecommon practice we observe today in trade and industry, of structuring thesubsequent inter-State sale transaction as in-transit sale so to fall under clause(b) even though it was otherwise covered by clause 3(a).
• A pre existing order cannot thus be equated with the contract of sale. The saletakes place only when the transport documents are transferred or stoodtransferred by implication like constructive transfer.
• A reference to the contract coming into existence after movement commences,made by the Court in A & G Case should be construed to mean reference toContract of Sale and not an Agreement to Sale. A pre existing order is at themost an agreement to sale but the actual transfer of documents is a contract ofsale and if such transfer happens after the movement has commenced, suchsale can still be covered under Sec 3 (b) and is eligible for exemption.
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• While conducting In transit Sales, it should therefore be always considered thatcrux of the exemption under Sec 6(2) is Sale made by way of transfer ofdocuments of Title to the goods during their inter state movement.
• Those responsible for such sales must ensure that the sales contracts relating tothe second and subsequent sales are made effective only after and not beforethe commencement of the inter-State movement of goods, as per the first sale.
• At Departmental Level also , a better sense appears to have gained acceptance.West Bengal VAT authorities, vide Trade Circular NO. 11/2010 dated 4-10-2010)has set out the departmental position that contract of sale and sale itself arealtogether different in case of inter state sale, and a pre-existing order or pre-determined parties will not negate any 3(b) sale if other requirements are foundfulfilled i.e. physical or constructive transfer of documents of title to the goods ismade. Maharashtra Govt. as usual is yet to follow suit and to relieve dealersfrom un necessary anxiety and litigation.
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Contentious Issues
Exemption for Branch Transfer underCST is also liable to be rejected if the
dispatches can be correlated withspecific requirements of customers to
whom goods are later sold by theBranch
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Contentious Issues
• Inter State Works Contracts
• After amendment to the constitution by inserting Article 366(29A) providingdefinition of the term “taxes on sale or purchase of goods” to include deemedsales, States were empowered to levy tax on sale or purchase of goods involvedin execution of works contracts, if such sales were intra state sales.
• Even after amendment, no tax was payable under the CST Act on deemed saleof goods effected in the course of inter-State trade as the definition of saleprovided in the Act did not include such deemed sales.
• The Finance Act, 2002 amended CST Act, 1956, from 11-5-2002 by substitutingsection 2 (g), the scope of definition of the term ‘sale’ is widened, to includetherein Deemed Sales.
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• The definition of the term “sale price” of the CST Act was amended by theFinance Act, 2005 from 13-5-2005, whereby a proviso was inserted in section2(h) of the Act. Accordingly, for works contract sales, the Central Government isgiven power to prescribe by way of rule to determine the sale price of goods ina prescribed manner by making such deduction from the total consideration forthe works contract as may be prescribed. Till date no such rules areprescribed. The SC in case of M/s. Mahim Patram 6 VST 248 (SC) held that tillRules are prescribed by government to determine sale price of works contractsales, State rules shall be applicable to determine sale price of the goods forlevy of tax under the CST Act. Therefore, in Maharashtra, provision of rule 58shall apply for determination of sale price for levy of CST.
• Similarly, sub-clause (ja) is inserted in section 2 of the CST Act by Finance Act,2005 defining the term “works contract” as a contract for carrying out any workwhich includes assembling, construction, building, altering, manufacturing,
• processing, fabricating, erection, installation, fitting out, improvement,
• repair or commissioning of any movable or immovable property
•
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• Section 3 of the CST Act, provides for principals to determine when a sale orpurchase of goods takes place in the course of inter-State trade or commerce.These principles have been applied by the courts in case of deemed sales likeworks contract and lease transactions. After the amendment to CST Act, 1956,by Finance Act, 2002, the position is very clear for application of provisions ofsection 3 to the deemed sales.
• In case of works contract sales, inter-State movement of goods takes place ofgoods with which works contract is executed as well as processed goods. Inboth cases, a sale is deemed to have effected in the course of inter-State tradeand liable to pay tax under the CST Act.
• In case of works contract, the property in goods generally passes as and whengoods are used in works contract and not on delivery of goods. Section 3 (b) ofthe Act provides for passing of property in goods in a particular manner; i.e., bytransfer of document of title to the goods. Unless, the property in goods passesby transfer of document of title to the goods, while it is in transit from one Stateto another the provisions of section 3(b) and section 6(2) are not applicable.
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• However in such cases, it is possible to contend that contract is not anindivisible works contract but divisible contract involving sale of goods bytransfer of document of title to the goods as such exempt from payment of taxunder section 6(2) of the CST Act, subject to production of required form C andE-I.
•
• Sale in the course of import or export – Section 5
• Under section 5 of the CST Act, no tax is payable on any sale or purchase ofgoods which occasions import of goods into India or export of goods outsideIndia. Further any sale of goods effected by transfer of document of title to thegoods before it crosses the custom frontier of India, popularly known as Highseas sale, is also exempt from payment of tax under section 5(2) of the Act.Under section 5(3) of the CST Act, any sale of goods to the exports to complyterms of any pre existing export order is also exempt from payment of tax,subject to production of form H.
•
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• The provisions of section 5 apply to works contract sales also, even prior toamendment to section 2(g) of the Act from 11-5-2002.
• The Commissioner of Sales Tax in case of Mazgaon Dockyard (DDQ dt. 31-10-1995) allowed the claim of the dealer for exemption under section 5(2) of theAct and held that when under the contract, the good are imported by thecontractor under the specific terms of the contract and used in works contractthen it has occasioned movement of goods from outside India and exemptunder section 5(2) of the CST Act.
• As a result of amendment by Finance Act, 2002, the dealer can issue Form C forpurchase of goods in the course of inter-State trade for the purpose of workscontract sales.
• Under section 8 of the Act, sales to the SEZ or developer of SEZ, is exempt frompayment of tax against Form I. This provision is applicable to Works contracts.
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Sequential steps of data compilationin e-704 Form:-
Sr. no. Steps1) Compilation of Annexures from A to K. (whichever applicable)2) Compilation of Schedules I to VI (whichever applicable)3) Updation of Part II4) Updation of Part I5) Letter of submission
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Important Current Issues1 – Denial of Set off
• Mahalaxmi Cotton. Vs St. of Mah. (11 May 2012) 51 VST 1(Bom) & SLP # 10081 of 2013 dt 25 Feb 2013 (SC dismissedthe SLP).....
• Mah. State Govt filed affidavit & confirmed :
• 1. To chase sellers who are defaulters for Returns &
• recovery of taxes, invoking full machinery under the Act
• 2. To prosecute hawala / suspicious dealers, recovery
• proceedings & cancellation of their registration (2059
• Suspicious / hawala dealers list put up on website)
• 3. To take action against dealers who have defaulted in filing
• vat audit reports
• 4. The e-system is capable of providing transparent &
• accountable governance for tax payer
• 5. In case of short filers, buyers will be granted
• proportionate setoff
• 6. Defaulters list will be uploaded on website & setoff
• will be denied
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Important Current Issues1 – Denial of Set off
Mismatch of Seller’s J1 & Buyer’s J2
• Reasons
• Error in TIN (name), Net amt, VAT amt, DN, CN, Year end transactions,etc, Dealer has not given any data in J1 or J2; Seller declared as
• ‘defaulter’ as Non-filer or Short-filer on Dept. website under“Dealers Services” menu, Seller declared as ‘Hawala dealer’ on
• Dept. website under “List of Suspicious Dealers” in pop-up menu of
• “whats new”
• Implications for Seller:
• Error in data or Suppression of sales; Liability to pay VAT
• sales tax. Remedy – Revised Return/Annexure, Ledger Extract
• Implications for Buyer:
• Denial of claim of higher setoff Remedy – Revised Return/Annexure,Ledger Extract
•
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Important Current Issues2 – Changes in Form 704
• (Notification # VAT/AMD-2013/1B/Adm-8 dt 23 Aug 2013 )
• New Table 6 & Certification Point
• Report any similar issue involved in Auditee’s case where a
• decision against the State Govt or Commr was given by the
• Tribunal and the Reference / Appeal is pending before
• appropriate forum in the following dealer’s case which is/are
• appearing in the list of pending references/appeals kept on website
• of the Dept.: Important issue pending from Deptt side High Seas Sale in respect of Airway Bill
• In view of various such cases and ongoing updating on Website, reporting on this point will bean onerous task for Auditor and may require to incorporate disclaimer in the Report
• Report PAN of URD works contractor for VAT TDS data in Annex ‘D’
• Annex G / I / J1 / J2 : Number of Rows increased from 1000 to 5000
• Payment details added in Statement of Submission if liability pointed out byAuditor is accepted by the Dealer
• Annexures J3 & J4 relating to DN/CN merged with J1 & J2
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Current Issues
• Important amendments applicable to FY2012-13
• One revised return allowed for complete FY toincorporate changes made in VAT audit
• With Amendment to sec 32 A, direct demand noticecan be issued to dealer for payment dues in 704accepted by dealer, but not paid with int
• Carry forward of refund to next fy limit incr to 5 lfrom 1 l from FY 2012-13 onwards
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