Changes in new MVAT Audit Report in form 704 Whether this new VAT Audit Report in Form 704 has been notified by the Commissioner of Sales Tax? Updated

Transcription

1 MVAT AUDIT Amendments to Annexures A to K Form 704 Organised by ICAI OF WIRC Presentation by CA RAJAT B. TALATI rajat@talatico.com ON

2 Changes in new MVAT Audit Report in form 704 Whether this new VAT Audit Report in Form 704 has been notified by the Commissioner of Sales Tax? Updated on website on Notified on what is the implication for intervening period? Refer - Rule 17A. CA Rajat B. Talati - Mumbai 2

3 a glance ADDITIONS IN FORM LETTER OF SUBMISSION ANNEXURE G ANNEXURE J-5 ANNEXURE J-6 MODIFICATIONS IN FORM IN PART I IN PART II IN SCHEDULES I TO V ANNEXURE A TO D IN ANNEXURE E IN ANNEXURE F IN ANNEXURE J-1, J-2, J-3 AND J-4 NO MODIFICATION IN SCHEDULE VI AND ANNX. K TIN & PERIOD GETS DISPLAYED AUTOMATICALLY ON ALL THE PARTS OF AUDIT REPORT. CA Rajat B. Talati - Mumbai 3

4 Letter of submission I New insertion Mainly Dealer s Acceptance/Dissenting views - specified 8 Categories - with reasons to be filed physically only and it doesn t get uploaded If accepted by dealer When advised payment - make the payment immediately If not accepted- give the reason and depending upon the facts and circumstances of the case, action would be taken Apparently, VAT Audit report should be uploaded by dealer only. Still whether VAT Auditor can upload the same on behalf of Dealer? CA Rajat B. Talati - Mumbai 4

5 II) PART I Changes in Part -1 The version has been upgraded is provided in place of Version following changes made Sr. Nos. 2(B)(a) & (b)( Row Nos. 37 to 44) Schedule and Annexure as applicable to be ticked Read it in totality and not in isolation CA Rajat B. Talati - Mumbai 5

6 Changes in Part -1 (cont..) Table No. 2 Row No. 95 inserted Excess credit c/f to next tax period No change made in Table 3 i.e. Refund under CST not to c/f? What it implies? Table No.5 Heading of table changed If change in refund how to report? Additional details regarding Registration number of Auditor s firm has to be given. (Prop. as well as Partnership Firm) Issues Periodicity of Returns Filing of TDS Return in 405 CA Rajat B. Talati - Mumbai 6

7 Changes in Part 2 III) Some modifications Re numbering and Re alignment Land line Number of the dealer also asked for Activity Code: Minimum 5 digits activity code instead of 4 digits. IV) Schedule s - I to V More Rows added for providing Tax Rate wise break up Row provided for adjustment of VAT Refund to next Tax period CA Rajat B. Talati - Mumbai 7

8 Changes in Annexure A to J General observations V) All Annexure modified All Annexure have to be filled in descending order (value wise)? In case of Annexure J 1 to J -4, if incorrect TIN no. entered - immediately disclose the incorrect TIN in Red CA Rajat B. Talati - Mumbai 8

9 Changes in Annx A & B Annexure are modified Column pertaining to date of filing of returns removed Interest on late payment of tax auto calculated Due date of payment - in case last day being bank holiday? Challan III E- doesn t get uploaded CA Rajat B. Talati - Mumbai 9

10 Changes in Annx E Section 1 Quantity - in case of petroleum products in liters for Motor Spirit and not for Petroleum product. Section 2 Description of Rule 54 (a) to (k) now provided Section 4 Description of Rule 53 now provided (Sub clause wise set off calculation to be submitted) Section 6 Amount of Total Set-off Available Gross input Tax Set Off (ITC) Not Admissible (impact of 0 Value) Reduction in Setoff (ITC) Balance available Setoff (ITC). Auditor should put some amount, may be 0, against no setoff available in Rule 54. CA Rajat B. Talati - Mumbai 10

11 Changes in Annx F New Ratio? Added - Out of Maharashtra Purchases which are capitalized it is not a Ratio and only information asked for One Column- deleted - Method of computation & Observations, if any One Ratio is Changed - Ratio of interstate stock transfer to Net Local Sales has been asked in place of ratio of Net local sales to inter- state stock transfer. CA Rajat B. Talati - Mumbai 11

12 Changes in Annx F (cont..) New Information asked for In all, 15 types of new information asked for opening and closing stock ( Sr. Nos. 1 to 10) RM, PM, WIP, FG, Stores & spares Gross amount of sale of Fixed Assets (Sr. No. 11) Gross Receipts as defined in MVAT Rule 53(6) (Sr. No. 12) Turnover of Sales as per Profit & Loss (Sr. No. 13) Turnover of Purchases as per Profit & Loss (Sr. No.14) Total of Non sales income. (Sr. No. 15) CA Rajat B. Talati - Mumbai 12

13 Issues 1) Changes in Annx F (cont..) 1) Non Sales income (Ratio no. 3) Non-sales receipt V. Non-sale income, Gross Receipt, Gross Turnover of sales.( Gross Receipt as per Rule 53(6) and other wise. Turnover of sales and purchases as per P/L a/cs. (What treatment to be given to excise amount, tax amount, scrap sales amount etc.) 2) What treatment to be given to income received on account of interest, Subsidy, branch transfer etc.? CA Rajat B. Talati - Mumbai 13

14 Changes in Annx G This annexure is replacement cum newly inserted / of old annexure Information -declaration forms or certificate received. Form C, F, H etc. Total 999 rows are provided. Details of forms are to be mentioned in descending order (value wise)? CA Rajat B. Talati - Mumbai 14

15 Issues Changes in Annx G (cont..) How details are to be provided Declaration wise, Invoice wise or any other way? What is the impact on differential amount between gross sales amount and amount for which declaration has been received? Gross amount as per Invoice Which are the components to be included e.g. CST, freight charges, installation etc? Impact of Goods Return. Note Very tedious job to find out the exact value of sales invoices less goods returns and ultimately to reconcile with GTO of sales in Schedule VI. Idea is to reconcile with SCH. VI. CA Rajat B. Talati - Mumbai 15

16 Changes in Annx J -1 Customer Wise VAT Sales Details new rows added. Row No.1000 replaced with Remaining local transaction total where tax is collected separately not covered above Row No added for Local Sales to non TIN holders Row No.1002 is added for Gross local sales where tax is not collected. Terms Net Taxable amount, Gross Amount & Other Local Taxable Sales have been deleted. How to report Gross sales vis a- vis Gross sales and net taxable sales. Various types of sales made by various dealers e.g. PSI Sales, Composition Dealers sales, Impact of Rule 57(1) etc. CA Rajat B. Talati - Mumbai 16

17 Changes in Annx J -2 Supplier wise VAT purchases new rows are added. Row No.1000 replaced with Remaining local transaction total where tax is paid separately not covered above Row No.1001 added for Local Purchase from non TIN holders Row No.1002 added for Gross local Purchases where tax is not paid separately Note is provided and defined the terms Net taxable amount and Gross amount CA Rajat B. Talati - Mumbai 17

18 Changes in Annx J -3 Customer wise Debit Note or Credit Note following new rows are added. Row No. 500 replaced with Remaining local transaction total of Debit/ Credit Notes where tax is collected separately (not covered above) Row No. 501 inserted for Debit/ Credit Note in case of local sale to Non TIN holders Row No.502 inserted for Gross local sales of Debit/ Credit notes where tax is not collected separately CA Rajat B. Talati - Mumbai 18

19 Changes in Annx J -4 Supplier wise Debit Notes or Credit Notes new rows are added. Row No. 500 replaced with remaining local transactions total of Debit/ Credit Notes where tax is collected separately by supplier (not covered above) Row No. 501 inserted for Debit/ Credit Note in case of local purchases to Non TIN holders Row No. 502 inserted for Gross local purchase of Debit/ Credit notes where tax is not collected separately CA Rajat B. Talati - Mumbai 19

20 New Annx J -5 Customer wise transactions of Direct Export and High Seas Sales under CST Act, details called for - Customer Name TIN of Customer (if Any) Transaction type, Export or High Seas Sales Gross Total Major Commodity CA Rajat B. Talati - Mumbai 20

21 New Annx J -6 Supplier wise Transactions under CST Act details called for Customer Name TIN of Customer (if any) Transaction type, OMS purchase, Direct Import, High Seas purchase, Purchase U/s. 6(2) & Branch transfer Any other cost of purchase Gross Total CA Rajat B. Talati - Mumbai 21

22 Changes in Instructions Following new instructions added Instructions Nos. 19 Annx -G Instructions Nos. 24 Annx J -5 Instructions Nos. 26- Annx J -6 Instructions Nos If wrong TIN - Red and Bold Validation buttons In all parts, Schedules & Annexure Press for Validation key is kept at the bottom rather than at top. CA Rajat B. Talati - Mumbai 22

23 CA Rajat B. Talati - Mumbai 23