TaxTMI 
TaxTMI 
Working Papers
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.... 3. Brief details of the revenue for the last three financial years in the proforma given below:- Year Total ITC credit availed (in Rs.) Total GST payment (in Rs.) CGST SGCT IGST Cess Cash ITC credit III. DESK REVIEW AND AUDIT PLAN: (PROCEDURE / FORMATS SEPARATE FOR GOODS AND SERVICES) PART -A: GOODS Date of Preparation _____________ 1. The auditor should check whether the Taxable person Master File is available in MIS Section and whether the same is complete. If not the auditor should complete the same as far as possible from the information available in the office. Go through the information available in Taxable person Master File. Identify and mention (with justifications), the areas or issues which merit inclusion in the Audit Plan. __________________________________________________________________________ 2. Obtain and study other documents mentioned in Annexure-GSTAM-III and conduct examinations as illustrated therein. List out the documents studied. Sl No Name of the document/report * Period* Rem....
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....analysis, covering a period of at least one year or a minimum of one return, for GST payable and paid. The GST payable may be derived by determining the taxable outward supplies from Profit and Loss Account and other supporting documents and reconciling with taxable persons records. The existing GST rate may be applied to this to arrive at GST payable. This may be compared with total GST paid as per monthly return. Mention results indicating possible problem areas and mention issues to be included in the Audit Plan. ________________________________________________________________________________ b. Perform the revenue risk analysis, covering a period of at least one year for ITC utilization and availment and record your conclusions as to the potential revenue loss. Value of inward supplies purchased as per the expenditure statement in the Profit and Loss account and other records as prescribed under section 35 (1) may be used for working out ITC available and compare it with ITC available in ITC credit Ledger (ITC PMT-01). Mention results indicating possible problem areas and mention issues to be included in the Audit Plan. ____________________________________________________....
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..... Obtain audited Balance sheet and Profit and Loss Account and trial balance. Review any notes in the Balance sheet / profit and loss account. If unit is a division of a company, check if internal financial statements are prepared for the unit before consolidation with other related units. Work out purchase value of inward supplies to value of outward supplies ratio and compare with ITC ratio. Obtain a copy of last two reports. Mention issues to be included in the Audit Plan. ________________________________________________________________________________ b. Identify all business activities like supply of goods/ supply of services like repair, service activities and major source of 'Other Income'. Mention issues to be included in the Audit Plan. ________________________________________________________________________________ c. Compare total turnover as per profit and loss account with the corresponding figures submitted to the department in the returns for three years. Mention discrepancies to be included in the Audit Plan. _______________________________________________________________________________ GATHERING INFORMATION ABOUT TAXABLE PERSON AND THE SYSTEM FOLLOWED B....
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....ough of the process of compiling GST return for one month, tracing from the tax return amounts backwards through to their sources. Check supplies as per outward supply Account in ledger with value shown in monthly return. Mention any new area need to be included in the Audit Plan or whether the extent of verification of the issue already identified in the Audit Plan needs to be modified. _______________________________________________________________________________ v. Evaluate the soundness of level of Internal Control of each of the following areas/sub-systems and grade them as good, acceptable or poor in the following format: In case quantum of data/information to be analysed is voluminous, apply ABC analysis (please refer para 5.7.2) Name of area/sub system Grade (good/acceptable/poor) Problem areas if any Sales. Purchase. Tax Accounting. Posting to General Ledger and Journals (specially of high value transactions). Recording of invoice. Recording of cash sales and purchases. Credit/debit and their documentation. Other expenditures. R....
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....p; ii. Examine selected recipient's ledger (customer) to find out any amounts other than those shown in Tax invoices are realised (Check Debit Note and Journal Vouchers also). _______________________________________________________________________________ iii. Identify other revenues as reported in the financial statements (Incomes other than from sales). Mention such other revenues which may form part of the assessable value _______________________________________________________________________________ B. INWARD SUPPLY (INPUTS)/PURCHASE INFORMATION: Date of Preparation ______________ a. Goods i. List major suppliers, inward supply of goods purchased and indicate annual volume in Rupees. Whether there are inward supplies purchased from related units? _______________________________________________________________________________ ii. Examine selected creditor's account (supplier) for each major input to find out any purchase returns, short supply, rejection of goods etc. and its impact on ITC availment. _______________________________________________________________________________ iii. Study the purchase details of major capital goods a....
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....of the auditor verifying the issue: ii. Issue involved in brief: iii. Ref. No. of the Audit Plan: iv. Documents verified: v. Brief account of the process and extent of verification: vi. Auditor's observation and conclusion in brief: vii. Quantification of revenue involved, if any (also give the calculation sheet): viii. Documents relied upon to support the conclusion: ix. Party's agreement : Yes/No x. If yes : In writing/Oral xi. Amount of recovery, if any : Signature of the auditor Supervisor's remarks and signature. VII POST VERIFICATION (to be filled up before leaving the taxable person's unit) Date of Preparation _____________ A. Indicate information provided and specific actions suggested to the taxable person to improve future compliance. Where the taxable person is in agreement with the suggestions, request a commitment in writing and include it in the Audit Report. If the taxable person is unwilling to give a written undertaking, obtain a verbal commitment. Mention results. _______________________________________________________________________________ B. SUMMARY OF AUDIT RESULTS Provide an outline of all objections, which involve short/non le....
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.... (h) Total GST paid IV. INPUT TAX CREDIT(ITC) ANALYSIS : (Rs in lakhs) for the last THREE years Subject/ Year 2017-18 2018-19 2018-19 Opening Balance Credit availed Credit utilised for payment of tax (Debits in Electronic credit ledger) Credit utilised for reversal under the provisions of Rule 42 of CGST Rules Closing Balance V. ANNUAL TURNOVER VIS-A-VIS GST PAID: Brief details of the annual turnover and the GST paid for the last five years and the current year (Only Income side to be mentioned, and as regards Value and Taxes, they refer to only output services- Reverse charge taxes not to be mentioned) (Rs in lakhs): Year Turnover as per P&L A/c or Trial Balance Income on interest/FDs etc. Value of Taxable Services Total GST paid GST Paid (by debit in Electronic Cash ledger) GST paid -( by debit in electronic credit ledger) % of ITC over Total GST ASSOCIATE OF ENTERPRISES: i Does the taxable person have an associated Enterprise as defined....
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.... ITC Total Tax paid Tax short paid Auditor's observations on delayed filing of returns, late payment of tax etc. XII. RISK LOSS ANALYSIS 1. Sales Income and GST payment: (a). Estimated sales value calculated from GST payment particulars = (b). Estimated value of sales as per Sales Account = (c) Estimated sales value as per 3CD = (d) Difference if any 2. Purchase of Input Services and ITC availment: Estimate taxable input services from purchase account and apply the rate of tax to determine the ITC that should have been availed on inward supply and compare it with ITC availment reported in GST return 3. Expenditure Account: Whether recoveries are made under various expenditure heads. If so, indicate the nature of such recoveries. 4. Whether services have any third party regulator. If so, name the regulator. Enclose copy of return submitted to third party regulator. XIII. AUDIT PLAN: Date of Preparation _____________ Audit Plan approved by __________ The Audit Plan must be based on the issues identified in the previous steps as to be verified during the....
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....nal controls (Walkthrough and ABC analysis): i. Perform a walkthrough for the Records maintained. Trace a sample of transactions (all types, including those on Credit) from source documents through the GST account. _______________________________________________________________________________ ii. Perform a walkthrough of the purchase system (including capital assets). Trace a sample of transactions, of all types, including Credits. Examine specifically system for purchase, rejection, short supply etc. _______________________________________________________________________________ iii. Perform a walkthrough of any other system (eg. Stores Journal Entries, ITC accounting etc.) Trace a sample of transactions of all types. _______________________________________________________________________________ iv. Perform a walkthrough of the process of compiling GST return, tracing from the tax return amounts backwards through their sources. Check services provided as per relevant account in ledger with value shown in the return. _______________________________________________________________________________ v. Evaluate the soundness of level of Internal Control ....