Vat Audit Query

[Saurabh Singh]

Dear Team

one of my client is registered under Maharashtra VAT  and he is civil contractor he had provided some service out of maharashtra also without taking vat no. of particular state , he has paid tax on such sale as urd delar to that particular state.

my question is now i am doing his vat audit in maharashtra so how i show serveices which he has provided out of state ..in form 704 and in his return ..

 

[Dharmnath Avhad]

dear Saurabh

YOU HAVE NOT MENTIONED

1) how you could pay tax as  URD in other state. You mean paid trough T D S  trough you vendor ? 

2) whether you have transfered any material from maharashrtra ,to other state .

If yes, you have to pay tax to maharashtra state to the extend of material transfered from maharashtra

3) if no material is transfered from maharashtra and all material is purchased in other state, there is no prescribed colomn to mention other state turnover.

regards 

D B Avhad

[Saurabh Singh]

Dear Avhad

Thanks for ur reply .. as u have said

1. They r deducting TDS on VAt  at the rate of 4% .. now i want to ask can we take input of the same while paying vat liability in the state in which i have done my registration

2. As u have asked about transfer of material than we have not trf. any material we have purchased all material local only

3. I just want to confirm one thing that there is no need to show sales in our mvat audit report and we do not have to pay tax on the same ..

kindly confirm the same ...

 

 

 

AI Summary

Interstate service supplies: reporting in home-state VAT audit where services taxed or taxed at source elsewhere and no material transfer. Issue: A Maharashtra-registered civil contractor supplied services outside the state without registering in the consuming state and paid or had tax deducted in that other state. Key operative points: if materials were transferred from Maharashtra, Maharashtra VAT may attach to the transferred material; if no material was transferred and procurement occurred outside Maharashtra, there is no prescribed return column in Form 704 to report other-state turnover, so such outward services are not included in Maharashtra taxable turnover in those fields. The question of claiming tax deducted at source in the other state as input credit in Maharashtra depends on input credit rules and supporting documentation.