Delhi Value Added Tax (DVAT) Audit Report – AR-1
By CA Ankit Gulgulia (Jain). Assisted by Rahul Gupta. They can be reached at ankitgulgulia@gmail.com |
There are twelve parts of audit report under Value Added Tax to be filed under the form AR-1 within seven and half monthsfrom the end of financial year for certain specified set of dealers and all parts of this report are mandatory for all auditees.
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As per part one, Audit report, verification and certification summary of additional tax liability, adverse comments and recommendations to the dealer, the auditor’s opinion, based on his audit on Central Sales Tax/VAT related records and financial statement, must be free from material misstatements and he believe that our audit provides reasonable basis for our opinion.
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The auditor shall provide the summary of the additional tax liability or additional refund due to the dealer on audit for the year.
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General information consists of period, accounting year, and registration under CST Act, Tan & Pan and Tin under DVAT Act.
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Related Information under VAT Act
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Related Information under CST Act
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Business related information – It comprises-
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Whether separate books of account are maintained for Delhi office.
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Business Activities in brief
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Commodity details
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Address of the place of business of the dealer
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Name and versions of accounting software used
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Change in method of valuation of stock, accounting system and product line.
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Nature & Construction of business.
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Particular of bank account
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The auditor shall furnish the details of Tax period, Due date of E – filing and Due date for filing Hard Copy.
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While conducting audit, the auditor shall compute the turnover under DVAT. Turnover includes taxable and exempted sales, value of consignment and job work etc.
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Calculate exempted sales under the Delhi Act
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Computation of Output VAT
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While conducting audit, the auditor shall compute the turnover under Sales Tax Act. Turnover includes taxable and exempted transaction, value of consignment and job work etc.
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Computation of Central Sales Tax
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The auditor shall furnish the detail of Purchase of capital goods, Purchase of other goods eligible for input tax credit, Inter-state purchase, Purchases by SEZ /Diploma.
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Break-up of purchases (Including Tax):
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Local Purchases
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Central purchases
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Inter-state Sales against Declaration Forms: Sales/Transfer against Forms-C, Forms- E I/II, Forms-F, Forms- H, Forms-I, Forms- J, Other (Specify).
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Local Sales against Declaration Forms-H and other (Specify).
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The auditor shall provide the detail of amount of contracts awarded as contractee during the audit period and TDS deposited in time.
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It is very intricate part of AR-1 due to having a lot of analysis and summary about income& expenditure, capital& liabilities, assets and financial ratio.
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In questionnaire, the auditor shall give his analysis in yes/no forms about:
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Gross Turnover
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Central Sales include export & import, penultimate export, branch transfers, subsequent sales, sales to diplomatic, sales out of Delhi, sales against Forms C
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Computation of Delhi VAT Output Tax
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Adjustment in Delhi VAT Output Tax
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Claim of Input Tax Credit
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Reversal of Input Tax Credit
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Computation of Tax
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For dealer engaged in Works Contracts
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For dealer engaged in the business of Composite Contract/Transactions
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For dealer engaged in Leasing Business
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Dealers who have opted for Composition Scheme
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Computation of Central Sales Tax
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Central Purchases
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Tax Deduction at Source
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Maintenance of Books of Accounts
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Filling of Information and Miscellaneous
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No format for the Annexure has been specified.
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Statutory Audit Report with complete set of annexure including that of Related Party Disclosures as required under Accounting Standards 18.
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Tax Audit Report under the Income Tax Act, 1961 with complete set of annexure.
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Audited Balance Sheet, Profit & Loss Account/ Income and Expenditure Account.
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In case dealer 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.
The Author is Practicing Chartered Accountant in New Delhi and specializes in Indirect Taxation, Corporate Laws and Transfer Pricing
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Related Tags AR-1, Audit, DVAT, Indirect Taxes
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