TaxTMI 
TaxTMI 
Notification regarding procedure and form for filing Audit Report.
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....ly for dealers with a gross turnover of Rs. 10 Crore (rupees ten crore and above in 2011-12 or in any of the subsequent financial years. Dealers exclusively dealing in commodities listed in the First Schedule appended to the Act and the dealers with 100% export turnover shall be exempted from furnishing audit report under this notification. 2. FORM AR-1 Place Date: Seal Signature &....
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....rt 10 No format for the Annexures has been specified. The Auditor shall give complete and exhaustive details and information in respect of every observation/deficiency; The auditor shall ensure that all provisions of the Delhi VAT Act and Rules made thereunder including the notifications, circulars, advance rulings under Section 85 and determinations issued by the Commissioner (unless overruled by the Higher Courts) are complied with; 4 7 If the books of accounts are audited under the provisions of the Income Tax Act, 1961, then the Auditor should obtain the certified Financial Statement and Audit Report under Income Tax Act. In case books of account are audited under any other Act then the Auditor should obtain the certified Financial Statement audited under that Act and the Audit Report as well; No part of the certifications in Part I shall be modified. If Auditor has to give qualified report, it should be given in Para 4 of Part I along with the reasons for the same; If the dealer has multi-State activities, then Trial Balance, Trading Account and Profit & Loss Account in relation to the business activities in the National Capit....
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....ler is having multi-State activities, the Trial Balance, Trading Account and Profit & Loss Account for the business activities in the National Capital Territory of Delhi. Strike out whichever is not applicable. Place Date: Seal Yes/No* Signature: Name: Enrolment / Membership No. Name & Address of the Dealer TIN AUDIT REPORT UNDER SECTION 49 OF THE DELHI VALE ADDED TAX ACT, 2004 FROM PERIOD UNDER AUDIT 1. Default in furnishing of DVAT Returns During the Audit Period 2. Default in furnishing CST Returns during the Audit Period EXECUTIVE SUMMARY WARD TO indicate number indicate number 3. Understatement of Local Turnover Rs. 4. Understatement of Local Taxable Turnover Rs... 5. Default in computation of DVAT Rs. 6. Understatement of Central Turnover Rs. 7. Understatement of Central Taxable Turnover Rs... 8. Default in computation of CST Rs.. 9. Default in complying with TDS provisions Rs.. 10. Mis-utilization of Central Declaration Forms, if any 11. Maintenance of books of accounts and records 12. Give rating to the conduct of the dealer Towards co....
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....bject to my/our remarks about non-compliance, shortcomings and deficiencies in the returns filed and tax liability computed and presented in respective Parts and Para 4 of this Part, I/We, to the best of my/our knowledge and belief, certify that, (a) I/We have obtained all the information and explanations, which to the best of my/our knowledge and belief, were necessary for the purposes of the audit; (b) I/We have read and followed the Instructions for conducting the audit and preparation of this audit report; (c) The books of account and other sales tax/VAT related records and registers maintained by the dealer alongwith sales and purchase invoices as also Cash Memos and other necessary documents are sufficient for computation of tax liability. under the DVAT and CST Acts; (d) I/We have verified all returns (including the TDS returns) under the DVAT Act and CST Act filed by the Auditee for the period under audit. (e) The gross turnover of sales and purchases determined, includes all the transactions of sales and purchases concluded during the period under audit in accordance with the provisions of the DVAT Act and the CST Act; (f) ....
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....eme and has complied with the requirements of the Scheme. 4. The above report is subject to the following qualifications:- (a) (b) (c) (d) (e) 5. Summary of the additional tax liability or additional refund due to the dealer on audit for the year are as follows:- SI.No. Particulars Amount per Return (in Rs.) as Correct amount determined in audit as Difference (in Rs.). per accounts (in Rs.) (D) (2) (3) (4) (5) I. Output tax payable under the Delhi Value Added Tax Act, 2004 2. Tax payable under the Central Sales Tax Act, 1956 3. Input Tax Credit claimed. Ineligible Input Tax Credit reversed 5. Net Input Tax Credit available for adjustment 6. Refund claimed 7. (a) Input Tax Credit adjusted against Value Added Tax (b) Input Tax Credit adjusted against Central Sales Tax 8. Any other item (specify) The tax liability of the dealer for the Assessment Year is arrived at as below:- Act (1) Tax Due (after all adjustments) (2) Tax Paid (in Rs.) (3) Balance/ Excess (4) Delhi Value Added Tax Central ....
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.... other significant information RELATED INFORMATION UNDER OTHER ACTS (I) ECC No. under Central Excise Act, if any (2) Service Tax Registration No., if any (3) Import Export Code given by DGFT, if any (4) Registration No. under the Companies Act, if any Any other Registration 2. BUSINESS RELATED INFORMATION A. (1) Whether separate books maintained for Delhi Office of account [If yes, attach audited Balance Sheet and Profit & Loss A/c: and if No, attach self-attested Trial Balance] (2) Whether accounts are maintained on computer system or manual basis (3) List of books of accounts Yes/No (4) Whether proper quantitative stock register is maintained (5) If the answer of (4) is 'Yes', whether the stock is valued on the basis of same (6) If the answer of (4) is 'No', method and manner of calculation of stock at the end of the financial year B. Business Activities in brief C Commodity dealt in (5 major commodities) SL Central SCST No GTO GTO 1. 3. 4. 5. D. Address of the Place of Business of the dealer where books of account are kept E. [i] Name....
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.... No. PART-4 4.A. COMPUTATION OF TURNOVER UNDER DVAT ACT I Gross Turnover of Sales N As per Returns As Difference Annexure determined showing during Audit discrepancies [including taxable and exempted sales, value of consignment/ branch transfers and job work charges] [In case of works contract, gross consideration including labour, services & land price included in sale agreement] Central Sales 41 5-1 3 Turnover under DVAT (1-2) 4 Computation of Output Tax [Please Refer to Part 4.C] Adjustment in Output Tax 42 4-3 3 6 Net Output Tax [4 (+)/(-) 5] 7 Input Tax Credit (ITC) 44 8 Adjustment in ITC H 9 Net ITC [7 (+)(-) 8] 10 Net Tax Payable (6-9) 45 = 11 Add: Interest payable 45 12 Add: Penalty payable 4-5 13 Less: Tax deducted at source 4-5 (duly supported by certificates) 14 Less: Tax deposited 45 15 Less: Amount adjusted 4-5 against CST liability SL No. 16 Less: Refund availed 17 Amount Payable/(-) Excess [10 11 12 (13 to 16)] 18 Amount paid during Audit SL No.....
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....crepancies 5-3 5-3 53 13 Stock/Branch Transfer 5-3 against F Forms u/s 6A of the CST Act 14 Sales against E-I & E-II Forms u's 6(2) of CST Act 15 Sales to diplomatic missions & U.N. etc. u's 6(3) of the CST Act Exempted Sales u/s 8(5) of 53 53 5-3 16 the CST Act 17 Sales covered under proviso 53 to Section 9 (1) Read with Section 8(4) (a) 1.8 Sales of Goods Outside Delhi 5-3 (Section 4) 19 Total of Exemptions/ Deductions [Sum (10:18)] 20 Balance Total Taxable turnover of inter State Sales 21 22 (9-19) Break-up of Turnover Turnover of Declared Goods against C Forms [Sec. 8(4) read with Sec. 14] Turnover of Declared Goods sold otherwise [Sec. 8(2) read with Sec. 14] 54 54 SL No. 23 Turnover of other than Declared Goods sold against C Forms [Sec. 8(4) read with Sec. 8(1)] 24 Turnover of other than Declared Goods sold otherwise [Sec. 8(2)] As per As Difference Annexure Returns determined showing during Audit discrepancies 54 54 Computation of CST 25 Total CST Payable [Pleas....
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.... without CST 3 Without Forms @ 1% 4 Without Forms @ 5% Without Forms @ 12.5% 6 Without Forms @ 20% 7 Others (Please specify) I PART-7 SALES AGAINST DECLARATION FORMS 7.A. INTER-STATE SALES AGAINST DECLARATION FORMS Whether SL Sale/Transfers No. against Form As per Returns As per DVAT-SI Forms Forms Already Furnished pending for applied for submission extension in 1 Form C Quarter 1 b Quarter 2 C Quarter 3 d Quarter 4 C Total Form E-III Quarter b Quarter 2 Quarter 3 Quarter 4 Total 3 Form F Quarter 1 b Quarter 2 C Quarter 3 ☠d Quarter 4 Total case of delay SL Sale/Transfers As per As per Forms Forms No. against Form Returns DVAT-51 Already Furnished pending for submission Form H Quarter 1 Quarter 2 C Quarter 3 d Quarter 4 Total Form I Quarter I b Quarter 2 G Quarter 3 d Quarter 4 Total Form J a Quarter 1 b Quarter 2 C Quarter 3 d Quarter 4 G Total Others (Specify) " Quarter I b Qua....
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....est & Financial Charges BIO Advertisement and Business Bil Promotion Expenses Administrative, Marketing and Other Expenses S.No. Particulars B12 Depreciation B13 Total Expenses [Sum (B1:B12)] B14 Less: Closing Stock BIS Net Expenses [B13-B14] B16 Gross Profit of business [A1 (B1 to B7)+ B14] B17 Net Profit [A4 - B15] Capital & Liabilities CI 0 0 04 Q 8 06 Capital employed & Reserves Long Term Loans (including Term Loans from Banks) Short term Loans (including Overdraft and Cash Credit limit from Banks) Creditors for Goods Creditors for Expenses Others (Specify separately if exceeding 10% of the total liabilities individually) C7 Total of Capital/Liabilities D Assets DI Fixed Assets Opening Balance Add: Additions Less: Sale/Adjustments Less: Depreciation Closing Balance Amount (For the year under Audit) Amount (For the year preceding the year of audit) Observations/ Remarks (if any) S.No. Particulars Amount (For the year under Audit) Amount (For the Observations/ year preceding t....
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....the genuineness of exports from Shipping Bills/Airway Bill and Customs Clearance Documents? Whether the proceeds of the exports have been realized? If not, give details of outstanding payments for more than 180 days from the date of export. 2B Sa Sale in the course of import u/s 5(2) of the CST Act a Have you verified the sale agreements and other documents to support the sale in the course of import under first limb of section 5(2) of the CST Act? In case of High Seas Sale covered under second limb of section 5(2) of the CST Act, have you verified the sale agreements and other documents to be filed with the Customs Authority? Further, in such cases, whether the Customs Duty is paid by the high-seas purchasing dealers? 20 20 Penultimate Export u/s 5(3) of CST Act (Form H) Î Whether conditions mentioned under section 5(3) of CST Act have been complied with? If not, specify the detail? Whether goods exported in the same form ? b Whether goods have been supplied to the exporter after receipt of export/import order? (details can be verified from Form Hitself) Whether Forms H, duly filed and signed....
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.... there is no unjust enrichment? Whether the computation of tax is in accordance with the provisions of DVAT Act? 4 Adjustment in Delhi VAT Output Tax ×” Whether the adjustment in the output tax claimed by the dealer is in accordance with section 8 of the DVAT Act? b In case of adjustment in the output tax due to goods return, whether goods have been returned within a period of six months from the date of sale? Whether credit notes, for adjustment in output tax, have been issued in terms of Rule 45 of the DVAT Rules? 5 Claim of Input Tax Credit (ITC) For all purchases on which the dealer has claimed ITC, whether the dealer holds tax invoices, which has been issued in terms of section 50(2) of the DVAT Act? Whether the purchases on which ITC has been claimed are eligible in terms of sec. 9(1) read with 9(2) of DVAT Act and are not specified in Schedule VII appended to DVAT Act? Whether the purchase of goods on which ITC has been claimed are used for eligible sales as specified in section 9(1) of the DVAT Act? Whether ITC has been claimed on goods incorporated in immovable property owned by ....
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....sed goods and the goods are subsequently transferred in terms of section 10(3), whether the amount of tax credit has been reversed in accordance with Rules 6 and 7 of the DVAT Rules? Give a detailed note on the method employed for such reversal in the Annexure and valuation of such amount. Whether ITC has been reversed on goods lost/destroyed in accordance with Rule 7 of the DVAT Rules? Whether ITC has been claimed on such goods which are specified in Schedule VII of the DVAT Act? Computation n of Tax a Whether calculations made for computation of tax are correct? b Where credit has been claimed on the basis of TDS certificates; and whether such certificate has C been issued in accordance with Rule 59(2) and challan for payment of tax has been attached to such certificate? Have you verified copies of duly receipted DVAT-20 as evidence of payment of tax? In case of excess tax paid, whether the amount has been correctly carried over/brought forward to/from the subsequent tax period? 45 For Dealers engaged in Works Contracts b d Peruse the major contracts on test-check basis. Have ....
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....s Whether the Auditee is engaged in composite contracts involving material and services, dominantly (other than works contracts), e.g., mandap keeper, event management, outdoor caterers, etc.? If yes, give complete details? b What is the method of bifurcation of turnover on goods and services? Are you satisfied with the same? Give detailed note. For Dealers engaged in Leasing Business (Transfer of right to use Goods) b Whether goods under lease agreement are taxed at the rate as applicable to respective goods under various Schedules of DVAT Act? If the agreement of transfer of right in respect of intangible goods has been executed in Delhi, whether due VAT has been paid under the DVAT Act? Have you verified lease agreements on test check basis? Report any adverse material noted. 10-2 10-3 11 12 Dealers who have opted for Composition Scheme u/s 16 (Composition Dealer) b Whether the dealer has applied for the composition scheme in the prescribed manner? Whether composition dealer has satisfied all the conditions specified in section 16 and in the respective notification? If No, compute ....
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....eturn in time? 15 Maintenance of Books of Accounts 10-5 Whether Auditee has maintained following records, either manual or on computer:- VAT Account DVAT-30 C DVAT-31 Rule 42(1)(a)-DVAT Rules Rule 42(1)(b)-DVAT Rules Rule 42(1)(c)-DVAT Rules ☠Stock Register Rule 42(1)(f)-DVAT Rules 16 C Form No. 2 (Register of C Forms) Rule 5(8) CST (Delhi) Rules Form No. 5 (Register of F Forms) Form No. 4 (Register of Inter-State Sales) Rule 8(5) CST (Delhi) Rules Rule 13 CST (Delhi) Rules h Form No. 6 (Trans- feree of goods Rule &(12) CST (Delhi) Rules issuing Form F) i Form No. 7 (Trans- Rule 9(1) - CST (Delhi) feror of goods) Rules Filing of information and Miscellaneous a Whether the particulars of persons recorded on the R.C. tallies with some valid documents, i.e., PAN, driving license, passport, etc.? b Whether the Auditee is registered with the Department with two or more "Trade Names" in C d separate wards? If yes, give details, even if some registration has already been cancelled. Has the Auditee obtained two or more registratio....