AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
Notification regarding procedure and form for filing Audit Report.
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....ver 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 &n....
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....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 Capital Territory of Delhi, authenticated by the dealer, shall be attached; Wherever prescribed documents are not made available to the Auditor or same are insufficient and incomplete, then the tax liability is to be com....
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....ess 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 compliance of DVAT/CST Laws Place Date: Seal (None/Occasional/Significant) (category-wise value i.e. C/F/H/1/J) Rs... Good/Average/Poor Excellent/Good/Average/Poor Signature: Name: Enrolment/Membership No. NAME AND AUDIT REPORT UNDER SECTION 49 OF THE DELHI VALUE ADDED TAX ACT, 2004 PART-I AUDIT REPORT AND CERTIFICATION ADDRESS OF THE DEALER TIN FROM PERIOD UNDER AUDIT [Use ....
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....f 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) The adjustment to turnover of sales and/or purchases is based on entries made in the books of accounts during the period under audit and the same are supported by necessary documents; The deductions claimed from the gross turnover of sales and other adjustments thereto including deduction on account of goods return, adjustments on account of discounts as also debit/credit notes issued or received on account of other reasons, are supported by necessary documents and are in conformity with the provisions of the relevant Act; (h) As per the information made av....
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.... 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 Sales Tax The dealer has been advised to () File revised returns for the period / month [See rule 29] (ii) Pay differential tax liability of Rs..... with interest of Rs........and penalty of Rs.... (iii) (iv) Claim refund of Rs. Reverse Input Tax Credit of Rs....... in the Monthly Return of (Note: Strike out whichever is not applicable) Place Date: Seal Signature: Name: Enrolment Membershin No. PART-2 GENERAL INFORMATION ABOUT THE DEALER'S BUSINESS ACTIVITIES [Use separate sheet wherever required] 1. GENERAL INFORMATION: A. (1) Period under the Audit (2) Accounting year followed by Auditee (3) Registration Number under CST Act (4) TAN for Tax deduction at source issued under the DVAT Act FROM (5) Permanent Account Number under Income ....
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....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 and version of accounting software used [ii] Change in accounting software, if any [iii] Whether accounts are maintained by full time permanent staff or by part-time accountant or by accounting professional? F. Method of accounting G. Method of valuation of stock H. The following are the major changes made during the period of audit (i) Change in method of valuation of stock (ii) Changes in the accounting system (iii) Change in product line (iv) New business activity (v) Other changes, if any [please specify] Accrual/Cash/Hybrid FIFO/LIFO/Average / Other (specify) Short description of change L. Whether any special audit/survey/ inspection/ J. seizure etc. has been carried out covering the period of audit or part thereof under the DVAT Act, Income Tax Act, Finance Act or any other Revenue Act? If yes, give brief note by way of Annexure and impact, if any, on the additional DVAT/CST liability Nature of business (Please tick one or more appropriate boxes, as applicable) Wholesaler Wor....
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....t Penultimate Export (if in exactly same form) u/s 5(3) of the CST Act. 3 Labour and service charges involved in the execution of works contracts As per As Returns determined during Audit Difference Annexure showing discrepancies Sale of capital goods, if any 48 5 Dealers specified in Fifth Schedule of DVAT Act 6 Other (specify) b 4.C. Computation of Output VAT SL Nature of Goods As per Returns As per Auditor No./Class of Goods (Top 10) DVAT Turnover Output Тах Appli Relevant cable entry of DVAT Output Turnover Tax Rate of Schedule Tax 2 4 6 7 9 10 Difference SL 2 5.A. PART-5 COMPUTATION OF TURNOVER UNDER CENTRAL SALES TAX ACT Details Gross Turnover of Sales [including taxable and exempted Transactions like 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] Turnover under DVAT 3 Central Sales (1-2) 4 Cost of Freight, deliveries, insurance or Installation, eparately charged but Included in the Turnover 5 Value of goods returned 7 8 9 under CST Act within the prescribed pe....
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....owing during obtained discre- Audit from Deptt. pancies Purchase of Capital Goods eligible for input tax credit (including tax) 2 Purchase of other goods eligible for input tax credit (including tax) 3 Purchase of other goods not 5 eligible for input tax credit Purchase of other goods made from unregistered/ composition/casual dealers Inter-State Purchases against Form C Inter-State Purchases against Forms C + E-I/E-II 6-1 6-1 6-2 6-2 7 Transfer of goods from 6-3 branch, etc. against Form F 8 Local purchases against 6-3 Form H 9 Central purchases against Form H 10 Import from other countries 12 Purchases by SEZ, etc.. against Form I Purchases by diplomats, etc. against Form J Other Inter-State Purchases without any Form 63 63 63 64 I 2 6.B. Break-up of Purchases (Including Tax) SL Nature of Goods/ No. Class of Goods As per Returns/ As determined Difference Mis- Annexure utilisation showing Records during (Out of (4) discrepancies Audit used for поп- specified purposes) (1) (2) (3) (4) (5) (6) (7) A Local Purchases 6-1 Exempted goods Taxable goods from unregistered/casual/ composition ....
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....ducted at source as contracted Tax deducted at source as contractor 7 TDS deposited in time s TDS deposited lare As per TDS Returns As determined during Audit Difference Annexure showing discrepancies 8 S.No. PART-9 FINANCIAL SUMMARY AND ANALYSIS (DELHI ACTIVITIES ONLY) Particulars Amount (For the year under Audit) Amount (For the year preceding the year of audit) (Amount in ,000) Observations/ Remarks (if any) A INCOME Al Sales Ð’ Works Contracts (Total consideration) b Transfer of right to use goods (Leasing/Hiring) C Other Sales of Goods A2 Services rendered A3 Miscellaneous Income including Interest A4 Total Income B Expenditure B1 Opening Stock of Goods B2 Purchases of Raw Material/ Stores/Trading Goods B3 Purchases of Consumable B4 Works Contract (with Material) B5 Contracts for Labour/Job B6 Labour and Wages B7 Other Manufacturing Exp. B8 Salaries B9 Interest & 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 [B1....
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.... turnover of sale and the turnover has been determined in accordance with Rules 3 and 4 of DVAT Rules? In case of transfer of right to use goods, whether the turnover of sale has been determined as per Rule 4 of the DVAT Rules? h Whether return of goods beyond the prescribed period has not been deducted? Whether transfer to principals/agents within Delhi has been included in GTO? Answer [Yes/No If Answer is / NA / Note] Adverse, Give Observations in Annexure No. '4-1' for Local Sale and '5-1' for Central Sale 2 Central Sales 24 Exports u/s 5(1) of the CST Act b Have you verified 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 agreement....
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....ly filed and signed have been furnished to Assessing Authority? 5-3 3 Computation of Delhi VAT Output Tax а b Whether turnover claimed exempt is in accordance with section 6 of the DVAT Act? Whether tax rates applied on the goods sold are in accordance with Section 4 read with various Schedules of the DVAT Act? Whether the amount collected as tax on sales, has been deposited to the Revenue in full and 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 ה 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 b....
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....s been reduced proportionately in terms of section 10(2) read with Rule 6 of the DVAT Rules? Give a detailed note on the method employed for such reversal in the Annexure and valuation of such amount. Where a dealer has purchased 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 ....
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....siness of composite contracts/transactions 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 tax on normal basis (i.....
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.... 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 registration with the Department at the same premises in different "Trade Names" in which he is related? If yes, give details, even if some registration has already been cancelled. Whether information has been filed in time in the circumstances requiring amendment....