TaxTMI 
TaxTMI 
KVAT Act 2003- Works Contracts-Assessments — reg.
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....scrutiny and assessment not attempted, wherever done in such cases turn over exemption is granted and assessments are completed by accepting the return figures without any corroborative evidence to establish exemptions. The officers are not sending pre assessment notices therefore the dealers are not filing statutory forms, the cases are going time bar and such things have been going on. This could have resulted in huge revenue losses to the State exchequer. Another thing noticed is that the scrutiny and assessment are pending and many cases are now time barred. As CST is implemented, it is important that all pending VAT assessment especially in Works Contracts should be completed in time bound manner to ensure that no case becomes time bar and tax due is collected in time. In order to streamline the works the following instructions shall be meticulously followed - A. Strategy 1. Completion of scrutiny and assessment of various years 2. Passing of modified orders on the basis of Appellate orders 3. Fresh disposal of remanded cases 4. Disposal of LAR cases B. Action Plan a. Updation of Assessment files b. Submission of the following st....
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....n with permission of Dy. Commissioner based on genuine grounds only. 12.A separate register shall be kept for Appellate orders and follow up action has to be properly entered in it. 13. The completed assessment orders to be passed and served in time. The notices and orders to be uploaded in Peer review module. 14. Dy. Commissioners shall assess and monitor submission of all statutory documents by the dealers in time. They shall report the same every week. 15. All supervisory officers shall give approval of the draft notices and orders only after thorough verification of the details. 16. All supervisory officers shall verify completed assessments cases exemption given based on the filing of statutory documents, tax rates and application. SCRUTINY OF COMPOUNDED DEALERS IN WORKS CONTRACT Sl.No. Nature of Defect Result of Verification Source of Verification I Eligibility for Compounding: 1. Whether compounding application filed Yes/No KVATIS >Dealer Information (If no proceed to scrutiny of non-compounded dealers) >Online applications > Year>Compounding application. 2. Type of compounding application filed Annual/Work wise ....
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....ince it shows the current position of CST of a dealer and does not reflect previous CST data of a dealer.) Import Details: 1. KVATIS>Returns>Select Return of the dealer>Check post transactions>Consignee>year. 2. KVATIS>Returns>Select Return of the dealer>Parcel transactions>Period. 3. KVATIS>Returns>Select Retum of the dealer>Form 8FA>Period. III Contract Value/Taxable turnover 1. Whether whole contract amount declared is correct Yes/No 1. Gross Contract amount of work declared in Returns. 2. Cross Contract amount of work declared in Audit Report. 3. Gross Contract amount of work as per Agreement and schedule filed. 2. Whether awarder supply is included in whole contract amount Yes/No 1. Cross Contract amount of work declared in Returns. 2. Awarder supply in P&L A/c. 3. Agreement. 3. Whether balance contract amount carry forwarded to current year. Yes/No 1. Part A - Details Of ongoing contracts in Previous year return-Balance outstanding with Amount received up to the previous quarter in Current year return. 2. Part A - Details of ongoing contracts in Previous year return-Balance outstanding with Contract Recei....
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....S: Return>Reports>Works Contract>Awarder details. 4. Form 26 AS from IT Department. 5. Bank Account. 6. IT Return. 3. Whether contract receipts as per Return and audit report/P&L A/c are correct. Yes/No 1. Compare amount received during the quarter in Part B of Return with Column No. 12 in Works Contract in Form 13A and Contract Receipts in Profit and Loss Account filed. 4. Delivery Note used. Yes/No 1. KVATIS>Returns>Select Return of the dealer>Delivery Note > Period. (If yes verify with location of works) VI. TDS verification 1. TDS claim if any Yes/No 1. Return >Summary column> Other>TDS. 2. Proof for TDS claim filed. Yes/No 1. Form 20 F. SCRUTINY OF COMPOUNDED DEALERS IN WORKS CONTRACT Sl.No. Nature of Defect Result of Verification Source of Verification 1. Status of dealer (a) Works of Govt of Kerala, LSGD and KWA. 1. Nature of work declared in Part A of Returns. (b) Works of Other Awarders. 2. Nature Of work declared in Audit Report. (c) Builder 3. Nature of work as per Agreement and schedule filed. 2. Whether compounding application fil....
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....of declared goods as per Profit and Loss Account. 3. Returns>Invoice verification>Purchases>Build from others 4. Value of declared goods incorporated as per Statement showing computation of turnover as per Rule 10 (2) (b). 7. Whether taxable turnover declared is less than cost of goods incorporated. Yes/No 1. Taxable turnover as per Part B of return. 2. Cost of goods incorporated as per Rule 10 (2) (b). 8. Form 49 by builders Yes/No 1. Verify the details with receipts in Part of Return. 9. Whether the project is a joint venture Yes/No 1. Verify the agreements filed. 2.Ensure that tax paid on consideration in any form given to the land owner like flats. commercial building, cash, etc. 10. Whether exemption claimed on completed projects. Yes/No 1. Proof of completion. 2. Ownership license from LSGD in the name of builder. 3. Non-existence of any prior agreement or payment of advances if any. 4. Source of finance. IV Unaccounted Transactions: 1. Unaccounted purchases Yes/No Cross verify purchases as per return with KVATIS data and purchases in P&L A/c. 1. KVATIS>Returns....