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S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS.

CLIENT NAME: PERIOD:1/4/2011-30/9/2011

AUDIT STARTED: F.Y.:2011-2012 A.Y.:2012-2013

AUDIT PROGRAMME
S NO 1 2 PARTICULARS OPENING TRIAL BALANCE CASH VOUCHING PETTY CASH MAIN CASH NEGATIVE CASH VERIFI. BANK VOUCHING (LIST DOWN ALL BANK AS PER T/B) BANK RECO (LIST DOWN ALL BANK AS PER T/B) SALES VOUCHING A) EXPORT B) LOCAL 6 A) IMPORT B) LOCAL 7 INDIRECT INCOME CORRESPONDING TDS OF DIRECT & INDIRECT INCOME PURCHASE VOUCHING DONE BY SCOPE/MONTHS QUERY SHEET

7 8 9

CREDIT NOTE DEBIT NOTE SALARY REGISTER

10 11 12

CHECKING OF O/S EXPENSES & PROVISIONS CHECKING OF PREPAID EXPENSES FIXED ASSETS ADDITION: SALE: DEPRECIATION:

13

JOURNAL VOUCHING

14

STATUTORY DUES TDS ON COMMISSION TDS ON PROFESSION TDS ON RENT TDS ON SALARY TDS ON JOB WORK TDS ON LOADING & UNLOADING TDS ON PROFESSIONAL CHARGES PROVIDENT FUND ESIC PROFESSIONAL TAX CST VAT SERVICE TAX EXCISE ANY OTHER

15 16 SECURED UNSECURED 17 18 19 20

INVESTMENTS LOANS

LEDGER SCURTINY FINALISATION SHARE CAPITAL DEBTORS/CREDITORS:RESTATEMENT FOR FOREIGN DEBTORS (AS 11)

S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS CLIENT: FY: AY: QUERY PERTAINING:
Sr. No. Voucher No. & Date
(ROW NO IN EXCEL)

DATE: QUERY SHEET NO: NOTED BY: SOLVED WITH:

Amount Rs.

Name of the Account Head

Particulars of Query

Remarks

S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS


COLOUR INDEX FOR VOUCHING
BANK CHGES QUERY NOT FOUND OK ROW NO: ROW NO: ROW NO:

DATE: DONE BY:


AUDIT PERIOD: LEDGER PERIOD:

S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS CLIENT: FY: AY: TDS ON :


MONTH AMT CR DD DOP PAID TDS DELAYS INT INT PAID

April 7/5/2012 May 7/6/2012 June 7/7/2012 July 7/8/2012 August 7/9/2012 September 7/10/2012 October 7/11/2012 November 7/12/2012 December 7/1/2013 January 7/2/2013 February 7/3/2013 March* 4/30/2013 TOTAL 0 * COLLECT TDS CHALLAN OF MARCH MONTH OF AUDIT FILE

S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS CLIENT: FY: AY: PAYMENT OF VAT:
MONTH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH TOTAL 0 0 VAT 12.5% VAT 5% (COLLECTED ON SALES) OUTPUT TAX (B+C) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CERDIT INPUT (PAID ON PUR) AMT PAYABLE (D-E) 0 0 0 0 0 0 0 0 0 0 0 0 0

PAYMENT OF CST
MONTH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH TOTAL 0 0 CST PAYABLE (SALES) EXCESS VAT (IF ANY) AMT PAYABLE (B-C) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 AMT PAID DUE DATE 21/5/2010 21/6/2010 21/7/2010 21/8/2010 21/9/2010 21/10/2010 21/11/2010 21/12/2010 21/01/2011 21/02/2010 21/03/2010 21/04/2010

UNWALA & CO. ACCOUNTANTS

DUE DATE 21/5/2010 21/6/2010 21/7/2010 21/8/2010 21/9/2010 21/10/2010 21/11/2010 21/12/2010 21/01/2011 21/02/2010 21/03/2010 21/04/2010

DOP

AMOUNT PAID

DIFFERENCE (IF ANY) 0 0 0 0 0 0 0 0 0 0 0 0

DOP

DIFFERENCE (IF ANY) 0 0 0 0 0 0 0 0 0 0 0 0 0

S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS CLIENT: FY: AY:


Excises Duty Payable Ecxise Edu Cess Sec Edu duty 10% 2 % Cess 1% Modvat 10% MODVAT AVAILABLE Edu Cess Sec Edu 2% Cess 1% TOTAL

Month APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH

TOTAL

O. NTS

AMOUNT PAID Ecxise Edu Cess Sec Edu duty 10% 2 % Cess 1%

BALANCE TOTAL

S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS CLIENT: FY: AY: PAYMENT OF PROFESSIONAL TAX MONTHS AMT CREDITED APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH TOTAL 2500/- COMPANY PROF TAX 0

DUEDATE 20/5/2010 20/6/2010 20/7/2010 20/8/2010 20/9/2010 20/10/2010 20/11/2010 20/12/2010 20/01/2011 20/02/2011 20/03/2011 20/4/2011

DOP

AMT PAID

DIFFERENCE

S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS CLIENT: FY: AY: PAYMENT OF VAT:
MONTH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH TOTAL 0 0 SERVICE TAX COLLECTED SERVICE TAX PAID AMT PAYABLE (D-E) DUE DATE 5/5/2011 5/6/2011 5/7/2011 5/8/2011 5/9/2011 5/10/2011 5/11/2011 5/12/2011 5/1/2012 5/2/2012 5/3/2012 5/4/2012 DOP

AMOUNT PAID

DIFFERENCE (IF ANY) 0 0 0 0 0 0 0 0 0 0 0 0 0

S.S.JUHUNJHUNWALA & CO. PRECISION CUTTING SYSYTEMS PVT LTD AY:2011-12 PAYMENT OF PF MONTHS APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH TOTAL AMT CREDITED AMT CREDITED AMT CREDITED TOTAL (EMPLOYEE) (EMPLOYER) ADMIN PAYABLE 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

PY:2010-11

DUEDATE 15/5/2010 15/6/2010 15/7/2010 15/8/2010 15/9/2010 15/10/2010 15/11/2010 15/12/2010 15/1/2011 15/2/2011 15/3/2011 15/4/2011

DOP

AMT PAID

TDS RATE CHART


ASSESSMENT YEAR 2012-2013 FINANCIAL YEAR 2011-2012
Nature of Payments Made to Resident Company Firm Co-op Soc. Local Authority
RATE 10 10 30 2 2 10 10 10 2 10

Threshold

Sec.

Description

Amount 10,000 5,000 10,000 30,000 75,000 20,000 5,000 1,80,000 1,80,000 30,000

Interest - Payable by Banks


194A

Interest - Payable by Others


194B Winning from Lotteries / Crossword Puzzle 194C

Payment to Contractors - Single Transaction Payment to Contractors - Aggregate during FY

194D Insurance Commission 194H Commission / Brokerage 194 I

Rent Rent - Plant / Machinery

194J Professional Fees

RT

12-2013 -2012
Individual HUF If No PAN OR Invalid PAN

RATE 10 10 30 1 1 10 10 10 2 10

RATE 20 20 30 20 20 20 20 20 20 20

S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS CLIENT: GILL & Co. Pvt. Ltd FY: 2012-2013 AY: 2013-2014 DOCUMENTATION TO BE COLLECTED FOR AUDIT FILE
SR NO
1 2 3 4 5

DOCUMENTATION
OPENING TRIAL BALANCE LAST YEAR'S SIGNED FINANCIAL STATEMENTS ADDITION TO FIXED ASSETS-XEROX OF INVOICE(APRIL-SEP) SALE OF FIXED ASSETS COPY OF ADVANCE TAX PAID

COLLECTED

RATE OF DEPRECIATION AS PER COMPANIES ACT


Rates of depreciation

Nature of assets

Single Shift WDV SLM 2 1

Double Shift WDV SLM 3 4

Triple Shift WDV 5 6

I. (a ) (b )

BUILDINGS(other than factory buildings) [NESD] FACTORY BUILDINGS 10%.

5%

1.63% .. 3.34% ..

.. ..

.. ..

PURELY TEMPORARY ERECTIONSsuch as (c ) wooden structures II. PLANT AND MACHINERY


1

100%

100% ..

..

..

[(i ) General rate applicable to,

(a ) plant and machinery (not being a ship) other than continuous process plant for which no special rate has been prescribed under (ii ) below

13.91%

4.75% 20.87%

7.42% 27.82%

(b ) continuous process plant, 2[* * *] for which no special rate has been prescribed under (ii ) below [NESD] (ii ) Special rates

15.33%

5.28% ..

..

..

A.1.Cinematograph films Machinery used in the production and exhibition of cinematograph films [NESD]

(a ) Recording equipment, reproducing equipment, developing machines, printing machines, editing machines, synchronisers and studio lights except bulbs (b ) Projecting equipment of film exhibiting concerns 2. Cycles [NESD]
3

20%

7.07% ..

..

..

[3. Electrical machinery, X-ray and electro-therapeutic apparatus and accessories thereto, medical, diagnostic equipments, namely, catscan, ultrasound machines, ECG monitors, etc. [NESD] 4. Juice boiling pans (karhais) [NESD] 5. Motor-cars, motor-cycles, scooters and other mopeds [NESD] 6. Electrically operated vehicles including battery powered or fuel cell powered vehicles [NESD] 7. Sugarcane crushers (indigenous kolhus and belans) [NESD] 8. Glass manufacturingconcerns except direct fire glass melting furnaces Recuperative and regenerative glass melting furnaces 9. Machinery used in the manufacture of electronic goods and components

20% 20%

7.07% .. 7.07% ..

.. ..

.. ..

25.89%

9.50% ..

..

..

20%

7.07% ..

..

..

20%

7.07% ..

..

..

20%

7.07%

30% 11.31%

40%

15.62%

5.38% 23.42%

8.46% 31.23%

B. 1. [Aeroplanes, aero engines, simulators, visual system and quick engine change equipment [NESD] 2. Concrete pipes manufactureMoulds [NESD] 3. Drum containers manufactureMoulds [NESD]

16.20% 5.6%]

4. Earth-moving machinery employed in heavy construction works, such as dams, tunnels, canals, etc. [NESD] 5. Glass manufacturingconcerns except direct fire glass melting furnacesMoulds [NESD] 6. Moulds in iron foundries [NESD] 7. Mineral oilconcernsField operations (above ground)Portable boilers, drilling tools, well-head tanks, rigs, etc. [NESD] 8. Mines and quarriesPortable underground machinery and earthmoving machinery used in open cast mining [NESD] 9. Motor buses and motor lorries other than those used in a business of running them on hire [NESD] 9A. Motor tractors, harvesting combines [NESD] 10. Patterns, dies and templates [NESD]

30% 11.31% ..

..

..

11. Ropeway structuresRopeways, ropes and trestle sheaves and connected parts [NESD] 12. Shoe and other leather goods fabricsWooden lasts used in the manufacture of shoes 5 C. 1. [** ** **] 2. Motor buses, motor lorries and motor taxis used in a business of running them on hire [NESD] 3. Rubber and plastic goods factoriesMoulds [NESD] 4. Data processing machines including computers [NESD] 5. Gas cylinders including valves and regulators [NESD] D. 1. Artificial silk manufacturing machinery with wooden parts 2. Cinematograph filmsBulbs of studio lights 3. Flour millsRollers 4. Glass manufacturingconce rnsDirect fire glass melting furnaces 4A. Flot Glass Melting Furnaces (NESD) 5. Iron and Steel industriesRolling mill rolls

30% 11.31% ..

..

..

30% 11.31%

45% 18.96%

60%

40% 16.21% ..

..

..

40% 16.21% ..

..

..

100% 27%

100% .. 10% ..

.. ..

.. ..

6. Match factoriesWooden match frames 7. Mineral oilconcerns(a ) Plant used in field operations (below ground)Distribution returnable packages; (b ) Plant used in field operations (below ground) but not including assets used in field operations (distribution)Kerbside pumps including underground tanks and fittings 8. Mines and quarries (a ) Tubs, winding ropes, haulage ropes and sand stowing pipes (b ) Safety lamps 9. Salt worksSalt pans, reservoirs and condensers, etc., made of earthy, sandy or clay material or any other similar material 10. Sugar worksRollers III. FURNITURE AND FITTINGS
6

100%

100% ..

..

..

[1. General Rates [NESD]

18.10%

6.33% ..

..

..

2. Rate for furniture and fittings used in hotels, restaurants and boarding houses; schools, colleges and other education al institutions, libraries; welfare centres; meeting halls, cinema houses; theatres and circuses; and for furniture and fittings let out on hire for use on the occasion of marriages and similar functions [NESD] IV. SHIPS 1. Ocean-going ships

25.88%

9.50% ..

..

..

(i ) Fishing vessels with wooden hull [NESD] (ii ) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes [NESD] (iii ) Other ships [NESD] 2. Vessels ordinarily operating on inland waters (i ) Speed boats [NESD] (ii ) Other vessels [NESD] WDV means written down value SLM means straight line method
NOTES 1. Buildings include roads, bridges, culverts, wells and tube-wells.

27.05% 19.80% 14.60%

10% .. 7% .. 5% ..

.. .. ..

.. .. ..

20% 10%

7.07% .. 3.34% ..

.. ..

.. ..

2. Factory buildings does not include offices, godowns, officers and employees quarters, roads, bridges, culverts, wells and tube-wells.

3. Speed boat means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometres per hour in still water and so designed that when running at a speed it will plane, i.e., its bow will rise from the water. 4. Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciatio n on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed.

5. The following information should also be disclosed in the accounts: (i ) depreciatio n methods used; and (ii ) depreciatio n rates or the useful lives of the assets, if they are different from the principal rates specified in the Schedule. 6. The calculations of the extra depreciati on for double shift working and for triple shift working shall be made separately in the proportion while the number of days for which the concern worked double shift or triple shift, as the case may be, bears to the normal number of working days during the year. For this purpose, the normal number of working days during the year shall be deemed to be

(a ) in the case of a seasonal factory or concern, the number of days on which the factory or concern actually worked during the year or 180 days, whichever is greater; (b ) in any other case, the number of days on which the factory or concern actually worked during the year or 240 days, whichever is greater.

The extra shift depreciation shall not be charged in respect of any item of machinery or plant which has been specifically, excepted by inscription of the letters NESD (meaning no extra shift depreciation) against it in sub-items above and also in respect of the following items of machinery and plant to which the general rate of depreciation of 7[13.91] per cent applies (1 ) Accounting machines. (2 ) Airconditioning machinery including room airconditioners. (3 ) Building contractors machinery. (4 ) Calculating machines.

(5 ) Electrical machinerysw itchgear and instruments, transformers and other stationary plant and wiring and fitting of electric light and fan installations. (6 ) Hydraulic works, pipelines and sluices. (7 ) Locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns. (8 ) Mineral oil concernsfield operations: (a ) 8[* * *] (b ) Prime movers (c ) 8[* * *] (d ) Storage tanks (above ground) (e ) Pipelines (above ground) (f ) Jetties and dry docks (9 ) Mineral oil concernsfield operations (distribution) kerbside pumps, including underground tanks and fittings.

(10 ) Mineral oil concernsrefi neries :

(a) 9[* * *]
(b ) Prime movers (c ) 9[* * *] 10 [(d ) LPG Plant] (11 ) Mines and quarries : (a ) Surface and underground machinery (other than electrical machinery and portable underground machinery) (b ) Headgears (c ) Rails (d ) 9[* * *] (e ) Shafts and inclines (f ) Tramways on the surface (12 ) Neo-post franking machines. (13 ) Office machinery. (14 ) Overhead cables and wires. (15 ) Railway sidings. (16 ) Refrigeration plant container, etc. (other than racks). (17 ) Ropeway structures : (a ) Trestle and station steel work.

(b ) Driving and tension gearing. (18 ) Salt worksReserv oirs, condensers, salt pans, delivery channels and piers if constructed of masonry, concrete, cement, asphalt or similar materials; barges and floating plant; piers, quays and jetties; and pipelines for conveying brine if constructed of masonry, concrete, cement, asphalt or similar materials. (19 ) Surgical instruments. (20 ) Tramways electric and tramways run by internal combustion enginesperm anent way: carscar trucks, car bodies, electrical equipment and motors; tram cars including engines and gears. (21 ) Typewriters.

(22 ) Weighing machines. (23 ) Wireless apparatus and gear, wireless appliances and accessories.] (24 ) 11[* * *] 12 [7. Continuo us process plant means a plant which is required and designed to operate 24 hours a day. 8. Notwithstand ing anything mentioned in this Schedule, depreciation on assets, whose actual cost does not exceed five thousand rupees, shall be provided at the rate of hundred per cent:]

13

[Provided tha t where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 or less constitutes more than 10 per cent of the total actual cost of plant and machinery, rates of depreciation applicable to such items shall be the rates as specified in Item II of the Schedule.]

Triple Shift SLM 7

.. ..

..

10.34%

..]

..

.. ..

..

..

..

16.21%

11.87%]

..

..

29.05%

..

..

.. ..

..

..

..

.. .. ..

.. ..

DEPRECIATION AS PER INCOME TAX ACT

II Rates of Depreciation (Applicable w.e.f. A.Y. 2006-07, Refer Notification No. 67/2005 dt. 28th February, 2005 w.e.f. 2-4-2005) I Buildings : (See Note 2)

RATE %

1 Buildings which are used mainly for residential purposes except hotels and Boarding House 2 Buildings which are not used mainly for residential purposes and other than mentioned in 1 & 3 3 Buildings acquired on or after 1-9-2002 for installing P & M forming part of water supply project or water treatment system put temporary to use for the purpose of providing 4 and Purely erections such as wooden structures. II Furniture and fittings including electrical
fittings

10

100

100

10

III

Machinery and plant : (See Note 3)

1 Machinery and plant other than those covered by sub-items 2, 3 and 8 below 2 Motor-cars (other than those used in business of running them on hire) acquired or put to use on or after 1st April, 3 1990. i. Aeroplane Aeroengines

15

15

40

ii.

Motor buses, Motor lorries and Motor taxies used in a business of running them on hire.

30

iii.

Commercial vehicle acquired on or

40

iv.

after 1.10.1998 but before 1.4.1999 and is put to use before 1.4.1999 for the purposes of business or New commercial vehicle acquired on or after 1.10.1998 but before 1.4.1999 and is put to use before 1.4.1999 in purpose replacement age for the of business or profession.

60

v.

New commercial vehicle acquired on or after 1.4.1999 but before 1.4.2000 in replacement of condemned vehicle of over 15vehicles years ofacquired age and vi. New commercial on or after 1-4-2001 but before 1-42002 and is put to use before 1-42002 commercial for the purpose of business vi.a) New vehicle acquiredor on or after 1-1-2009 but before 1-42009 and put to use before 1-4-2009 for the business or profession vii. Moulds used in rubber and plastic goods factories viii. Air pollution control equipments

60

50

50

30

100

ix.

Water pollution control equipments

100

x.

Solid waste control equipments

100

xi.

P & M used in semi-conductor industry

30

xi.a) Life saving medical equipments

40

(For Items refer to Rule 5 App. I)

4 Containers made of glass or plastic used as refills 5 Computers (including computer software)

50

60

7&8.

6 Machinery and plants used in weaving processing, and garment sector of textile industry purchased under TUFS on or after 1-4-2001 before is put For other but items of P 1-4-2004 & M refer and to Rule 5 to 100/80/60 App. 1 9 i. Books owned by assessees carrying on a profession a. Annual publication

50

100

b. Other books

60

ii.

IV

Books owned by assessees carrying on business in running lending libraries Ships

100

Refer to Rule-5 App.-I

20

Intangible Assets

Knowhow, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature acquired on or after 1.4.1998.

25

NOTES : 1. Where an asset is put to use for less than 180 days in a previous year in which it is purchased,depreciation thereon shall be allowed at 50% of the depreciation allowable in respect of the block of asset comprising such asset. 2. Buildings include roads, bridges, culverts, wells and tubewells 3. Plant has been held to include: movable partitions [Jarrold vs. John Good & Sons Ltd., 40 TC 681 (CA)] sanitary & pipeline fitting [CIT vs. Taj Mahal Hotel, 82 ITR 44 (SC)] ceiling and pedestal fans [CIT vs. Jagadees Chandran & Co., 75 ITR 697 (Mad.); Sundaram Motors Pvt. Ltd. vs. CIT, 71 ITR 587 (Mad.); CIT vs. Tarun Commercial Ltd., 151 ITR 75 (Guj)]. wells [CIT vs. Warner Hindustan Ltd., 117 ITR 15 (AP)]. hospital [CIT vs. Dr. B. Venkata Rao 111 Taxman 635 (SC)]. However, w.e.f. A.Y. 2004-05, it shall not include buildings, furniture and fittings. 4. Depreciation on assets acquired on hire purchase basis should be allowed to the hirer where the terms of the agreement provide that the equipment shall eventually become the property of the hirer or confer on the hirer an option to purchase the equipment [Circular No. 9 (R. Dis. No. 27(4) - IT/43), 5. Depreciation in respect of motor car manufactured outside India acquired on or after 28-2-1975 or before 1-4-2001 shall be allowed. 6. The claim of depreciation is mandatory w.e.f. A. Y. 2002-03 overriding Supreme Courts decision in CIT vs. Mahendra Mills 109 Taxman 225 which held that the depreciation claim is optional. 7. Total depreciation allowable in the year of succession/ amalgamation/demerger, to predecessor/amalgamating/ demerged co. and successor/amalgamated/resulting co. is to be restricted todepreciation allowable as if succession/ amalgamation/demerger had not taken place, and suchdepreciation is to be apportioned on the basis of number of days usage by each of them. 8. Depreciation is allowable even on jointly owned assets. 9. No amortisation benefits u/ss. 35A and 35AB can be claimed in respect of intangible assets. 10. In respect of depreciable assets employed in power projects, depreciation may be computed under the Straight Line Method on individual assets [Rule 5(1A)] [Appendix IA]. Alternatively, the undertaking, may at its option, also claim depreciation at the normal rates (Rule 5(1) Appendix I), subject to the option being exercised prior to the due date of filing the return of income. In the event of sale or disposal of such assets, if the sale consideration.

i. ii.

is less than WDV of such assets Balance (i.e., WDV sale consideration) can be claimed as depreciation, provided that such a deficiency is written off in the books.

is in excess of the WDV Excess (to the extent of the difference between actual cost and WDV will be taxable as Business profit and the balance as Capital Gains) 11. Additional Depreciation @ 20% of actual cost of new machinery or plant (other than ships and aircrafts) acquired and installed after 31st March, 2005 by an assessee engaged in the business of manufacture or production of an article or thing shall be allowed on satisfying certain conditions. Related posts: Commercial Vehicle Acquired b/w 01.01.2009 to 31.03.2009 will be eligible to depreciation @ 50% Can Assessee claim Depreciation on car Registered in the name of its partners or directors? Even if Income is exempt Assessee need to adjust written down value of fixed Assets with depreciation as per Income tax Act, 1961

Stock Exchange card is not an intangible asset eligible for depreciation U/s. 32 (1) of the Income Tax Act 1961 Allowability of depreciation on non-compete fee u/s. 32 of the Income Tax Act, 1961

CHECKLIST FOR VERIFICATION AND DOCUMENTATION


1. Tax Audit Report including other reports, if any, under 80-HHC, 80-I, 10A/B etc. 2. Annual Accounts with groupings (Balance sheet and Profit & Loss Accounts) 3. Trial Balance including Branch Trial Balance Main Debtors If voluminous, on floppy. Creditors Other detailed accounts. (Advances etc.) 4. Draft Tax Audit Report with annexures 5. Management Representation Letter 6. Compliance Certificate u/s 383A 7. Audit Programme 8. Audit Queries and comments of seniors. Only final disposal queries after solving routine queries 9. Documentation for CARO Report 274(1)(g) Representation from Directors for qualification. Internal Audit Report. Points noted & subsequent compliance Transaction with parties listed u/s 301 for comparison Compliance of section 58A and section 58AA and RBI guidelines Cost Audit Report, if any. Outstanding of statutory dues. Sources of long term / short term funds and applications.

10. Fixed Assets Details of additions made during the year In case of new projects, proof of commencement. Copy of government grants received during the year and accounting treatment Compliance of AS-10 Accounting for Fixed Assets, AS-11 Accounting of effect on change in Fore 11. Investments Physical Verification Report of Investment held by the company Valuation Statement with cost and market value Compliance of AS-13 Accounting for Investments.

12. Inventories Physical Inspection Report (Year end) Stock statement as per Excise Records Summary or production statement Method of stock valuation as per AS-2 Valuations of Inventories Stock statement and reconciliation statement of branch / agents. Statement showing workings as per Provisions of 145A. Valuation report of Inventories like Raw materials, Finished goods, Work in process, Stores and consu Cost sheet to prove cost of manufacture. Worksheet for realisable value. 13. Sundry Debtors Confirmation of debtors called for during the year. Position at the time of audit, i.e. debtors who have Age analysis of debtors Status of legal case filed if any Compliance of AS-11 Accounting of effect on change in foreign exchange fluctuations Provision for doubtful debts / writing off bad debts.

14. Cash and Bank Balances Physical verification report of cash (Year end) Bank balances confirmation and reconciliation statements for all banks and overview of items appearin FDR confirmation including accrued interest.

15. Loans and Advances Copy of balances with excise authorities in RG23 A Part II, RG23 C Part II & PLA and Copy of RT 12 Age wise analysis of advances / loans given Security details in case of loans given and verification of securities. Confirmation of ICDs, interest receipts and TDS certificates. Compliance of AS-11 Accounting of effect on change in Foreign Exchange Fluctuations regarding c Review of tax assessment and Provisions VS Payments. 16. Current Liabilities and Provision Age wise analysis of outstanding payables Computation of Income tax for provision of taxation To verify proof for 43B liabilities payments Subsequent to year-end payments to determines outstanding liabilities.

17. Secured / Unsecured Loans Confirmation of loans outstanding Compliances of AS-11 Accounting of effect on change in Foreign Exchange Fluctuations Interest provision, interest workings and TDS

Security documentation comments on review of from 8 & 13 and other paper.

18. Share Capital / Statutory Records In case of increase in share capital, Copy of resolution passed and copy of form 2 filed with Registrar o Minute books. Board meeting/General Body. Note all the matters affecting accounts and audit. Section 301 Register Registrar of contracts Annual Returns Corporate Governance (Audit Committee) norms, if applicable.

19. Documents for AS-22 Accounting of Taxes on Income, AS-20 Earning Per Share and AS-18 Related Pa Calculations of AS-22, AS-20 & AS-18 20. Revenue recognition Statement showing quantity sold as per books and as per excise records Statement showing reconciliation of excise duty paid with sales Statement showing reconciliation of sales tax collected with sales Statement of Export Sales, FOB sales realisation. Explanatory statement of any unusual items of income Cenvat accounting Other income, recoveries from contractor/others, Interest, Dividend and Rent Sale of scraps

21. Expenses Incurred Statement showing quantity purchase as per books and as per excise records Compliance of AS-5 Accounting for Prior period items Explanatory statement of any unusual items of expenses Consumption / conversion ratio for all products and comparison of it with previous year and note on m Comparison of Gross Profit Ratio with Last Three Years along with reasons for major variation/fluctua Reasonableness of expenses considering the size of the company Any personal expenses debited to Profit and Loss Account.

22. Notes to Account Review contingent liability list Cases against company admitted but not crystallized liabilities List of small scale industries whose amount outstanding for more than 30 days Quantity reconciliation of raw materials / finished goods C.I.F. value of Imports Expenditure in Foreign Currency Remittance in Foreign Currency on account of dividends Earnings in Foreign Currency Method of accounting consistently followed or not.

ng routine queries

ting of effect on change in Foreign Exchange Fluctuations, AS-16 Borrowing Cost, AS-19 Accounting for Lease and AS-26

ork in process, Stores and consumable, Packing materials and other inventories

of audit, i.e. debtors who have paid after year-end.

ange fluctuations

and overview of items appearing for more than six months.

art II & PLA and Copy of RT 12 returns, balances with other Government and semi Government bodies

hange Fluctuations regarding conversation of receivable.

change Fluctuations

of form 2 filed with Registrar of Companies. ting accounts and audit.

Share and AS-18 Related Party Disclosures Compliance

ith previous year and note on major fluctuations/variations. asons for major variation/fluctuations.

ccounting for Lease and AS-26 Impairment of Assets.

S.S.JHUNJHUNWALA & CO. CHARTERED ACCOUNTANTS. CLIENT NAME: PERIOD:1/4/2011-30/9/2011

AUDIT STARTED: F.Y.:2011-2012 A.Y.:2012-2013

AUDIT PROGRAMME
S NO 1 PARTICULARS OPENING TRIAL BALANCE REMARKS LAST YEAR'S SIGNED B/S IS COMPARED WITH OPENING TRAIBALANCE & ANY DIFFERENCE IS REPORTED. MATERIAL AMT IS SET SAY RS.100/-AMT BELOW ARE CHECKED ONLY FOR ACCOUNTING ENTRY PURPOSE SUPORTING ARE DEMANDED WHERE EVER REQUIRED.WHETHER PAYMENT IN CASH WAS NECESSARY IS CHECKED. CARE IS TAKEN THAT DATE BELONG TO CURRENT YEAR, BILL IN NAME OF CLIENT, SIGNATURE OF PREPARER, AUTHORISE, AND RECEIVER IS CHECKED.TOTATING IS CKECKED. STAT REQ.LIKE 20000/- CRETERIA & REVENUE STAMP IS CHECKED.ANY QUERY IS RECORDED IN QUERY SHEET.CONTRA ENTRIES IS CHECKED.CARE IS TAKEN THAT EXP. IS INCURRED FOR COMPANY. NEGATIVE BALANCE IS CHECKED IN SYSTEM

CASH VOUCHING PETTY CASH MAIN CASH NEGATIVE CASH VERIFI.

BANK VOUCHING (LIST DOWN ALL BANK AS PER T/B)

ALL PAYMENT IS VERIFIED ALONG WITH NECESSARY DOCUMENTS. ACCOUNTING ENTRIES ARE CHECKED.DATE,CO.NAME, AUTHORISATION IS CHECKED.TDS DEDUCTED IS CHECKED HERE

BANK RECO (LIST DOWN ALL BANK AS PER T/B)

BANK BOOK IS COMPARED WITH BANK STATEMENT TO RECONCILE & BALANCE AT THE REPORTING DATE. ANY PAYMENT BOOKED NOT CLEARED IN 6 M0N ARE ASKED FOR REASON & REVERSAL. EACH TYPE OF SALES IS VERIFIED SEPRATELY.PO OF BUYER IS ASKED FOR,RECONGITION CETERIA IS VERIFID,ACCOUNTING ENTRY IS VERIFIED, INVOICE IS PROPERLY CHECKED WITH DATE OF SALE & DATE OF PO,TERMS OF PO ARE COMPARED WITH ACTUAL SALES & ANY DIFFERENCE IS NOTED,NAME OF BUYER ON INVOICE & IN SYSTEM IS CHECKED,QUANTITY, RATE, TOTAL IS VERIFIED,LOCAL TAXES ARE CHECKED,AUTHORISATION IS CHECKED. LR COPY IS CHECKED WITH ALL PARTICULARS WITH INVOICE,GATE PASS IS CHECKED(IF PROVIDED), DELIVERY ORDER COPY IS CHECKED. INVOICE SHOULD BE IN ORDER.

5 A) EXPORT B) LOCAL

SALES VOUCHING

6 A) IMPORT B) LOCAL

PURCHASE VOUCHING

NAME OF THE SELLER IS VERIFIED ALONG WITH INVOICE & SYSTEMS. DATE OF PO & PURCHASE IS CHECKED FOR CURRENT YEAR,CLIENT NAME ,PARTICULARS ,QUANTITY, RATE,DISCOUNT GIVEN(IF ANY) IS CHECKED PROPER POSTING IS VERIFIED,LRCOPY AND RECEIPTS NOTE IS CHECKED.

7 8 9 10

CREDIT NOTE DEBIT NOTE SALARY REGISTER CHECKING OF O/S EXPENSES PAYMENT ENTRY IS CHECKED. PROPER HEAD OF ACCOUNTING IS CHECKED. PAYMENT WHICH IS NOT MADE WITHIN 06 MONTHS ARE ASKED TO REVERSE TO PNL A/C

11 12

CHECKING OF PREPAID EXPENSES FIXED ASSETS ADDITION: SALE: DEPRECIATION:

PRORATA BASIS IS USED TO CHARGE EXPENSES & PREPAID EXP. XEROX COPY OF INVOICE IS TAKEN.WHETHER ANY LOAN IS TAKEN FOR THE ASSETS IS CHECKED. REPAIRS TO FA IS CHECKED PROPERLY. SALE ENTRY IS VERIFIED PROPERLY WITH PROPER EFFECT OF DEPRN. AND LOCAL TAXES TO BE CHARGED AND ANY GAIN or LOSS ENTRY AND CALCUTION IS VERIFIED. RATE OF DEPRN IS CHECKED AS PER SCH XIV , PRORATA BASIC IS USED TO CHARGE DEP. AMT <5000/- IS CHARGED TO PNL VIA FIXED ASSET ACCOUNTS. PURCHASE OF BILL SHOULD BE IN NAME OF COMPANY.OTHER EXPENSES TO BRING THE ASSETS TO LOCATION ARE CHECKED & CAPITALISIED.

13 14

JOURNAL VOUCHING STATUTORY DUES

TDS ON COMMISSION TDS ON PROFESSION TDS ON RENT TDS ON SALARY TDS ON JOB WORK TDS ON LOADING & UNLOADING TDS ON PROFESSIONAL CHARGES PROVIDENT FUND ESIC PROFESSIONAL TAX

WHETHER PROPER DEDUCTION IS MADE OR NOT IS CHECKED AT THE TIME OF BANK/CASH/JV. HERE THE PAYMENT IS VERIFIED WITH THE PROPER CHALLAN (CORRECT SECTION, DATE OF PAYMENT,PAN NO, AMT, ANY INTERST IS PAID.PROPER PRESCRIBED FORMAT IS USED WHICH CONSIST OF AMT CREDITED IN ACCOUNTS,DUE DATE, PAYMENT DATE, AMT PAID, DELAY, INTEREST CALCULATION THEREOF IS CHECKED.

PROPER DEDUCTION IS CHECKED ALONG WITH SALARY VOUCHING. HERE AMT CREDITED IN PF/ESIC/PT ACCOUNT IS CHECKED ALONG WITH CHALLAN & CONTRIBUTION BY ER. & ADMIN CHARGES IS CHECKED. DETAILED FORMATS IS USED FOR VOUCHING.

CST VAT SERVICE TAX EXCISE ANY OTHER 15 16 SECURED UNSECURED INVESTMENTS LOANS

TED: 012 013

ALANCE & ANY DIFFERENCE IS

D ONLY FOR ACCOUNTING ENTRY

HER PAYMENT IN CASH WAS NECESSARY YEAR, BILL IN NAME OF CLIENT, CKED.TOTATING IS CKECKED. STAT ANY QUERY IS RECORDED IN QUERY P. IS INCURRED FOR COMPANY. NEGATIVE

NTS. ACCOUNTING ENTRIES ARE DEDUCTED IS CHECKED HERE

NCILE & BALANCE AT THE REPORTING SKED FOR REASON & REVERSAL.

ASKED FOR,RECONGITION CETERIA IS LY CHECKED WITH DATE OF SALE & DATE ANY DIFFERENCE IS NOTED,NAME OF E, TOTAL IS VERIFIED,LOCAL TAXES ARE WITH ALL PARTICULARS WITH DER COPY IS CHECKED. INVOICE SHOULD

STEMS. DATE OF PO & PURCHASE IS QUANTITY, RATE,DISCOUNT GIVEN(IF RECEIPTS NOTE IS CHECKED.

G IS CHECKED. PAYMENT WHICH IS NOT /C

P.

KEN FOR THE ASSETS IS CHECKED. D PROPERLY WITH PROPER EFFECT OF LOSS ENTRY AND CALCUTION IS ATA BASIC IS USED TO CHARGE DEP. AMT RCHASE OF BILL SHOULD BE IN NAME OF ION ARE CHECKED & CAPITALISIED.

AT THE TIME OF BANK/CASH/JV. HERE RECT SECTION, DATE OF PAYMENT,PAN T IS USED WHICH CONSIST OF AMT ID, DELAY, INTEREST CALCULATION

HING. HERE AMT CREDITED IN ONTRIBUTION BY ER. & ADMIN CHARGES

Mandatory Statutory Registers under Companies Act, 1956


1. Register of Investments not held by company in its own name u/s 49(1) 2. Register of fixed deposit under Acceptance of Deposit Rules, 1975 3. Register of Securities bought back u/s 77A. 4. Register of Charges u/s 143. 5. Register & Index of Members u/s 150 & 151. 6. Register of Debenture holders u/s 152 7. Register of Beneficial Owner u/s 152A. 8. Register of Foreign Members u/s 157. 9. Processdings of General & Board Meetings (Minutes) u/s 193. 10. Books of Accounts u/s 209 11. Cost Records u/s 209(1)(d). 12. Register of Contracts in which Directors are interested u/s 301. 13. Register of Directors, Manager & Secretary u/s 303. 14. Register of Directors Shareholding u/s 307. 15. Register of Inter Corporate Loans & Investments u/s 372A. 16. Register of Renewed & Duplicate Share Certificate.

Non-Mandatory Statutory Registers under Companies Act, 1956


1. Director Attendance book. 2. Shareholder/Proxy Attendance book. 3. Register of Sealed Documents. 4. Register of Share Application & Allotment. 5. Register of Share Transfer/ Transmission. 6. Register of Dividend. 7. Register of Power of Attorney/Probate etc. 8. Register of Dividend Mandate. 9. Register of Bank Account Particulars. 10. Register of Electronic Clearing Service. 11. Register of Fixed Assets. 12. Register of Form 24AA from Directors 13. Register of Nominations received. 14. Register of Share Warrants. 15. Register of Proxies.

TAX COLLECTION AT SOURCE (TCS)

Concept of TCS: - in this concept the seller of specified goods collect tax from the buyer under the section 206C (1). This is als Definition of buyer: - Buyer is a person who buys the goods for sale. The mode of buying may be direct purchase, tend Central/State government. Public company. Embassy, High commission or representation of foreign country. Any club. Any person who buys the goods for personal consumption & not for sale. Definition of seller: - seller of the specified goods is covered in TCS act. Seller may be individual or huf firm co-operative society company state or central government local authority Specified goods: - Specified goods are those goods, sale or purchase of these goods attracts TCS. There are only som 1Alcoholic liquor for human consumption. 2Timber 3Tendu leaves. 4Forest produce other than timber and tendu leaves. 5Scrap or waste.

Tax Rate: - Rate of TCS is different from one item to other. The rate of TCS is as follows. Alcoholic liquor for human consumption 1%(one percent) Timber 2.5%(two point five percent) Tendu leaves. 5%(five percent) Forest produce other than timber and tendu leaves.2.5%(two point five percent) Scrap or waste. 1%(one percent) -

TCS Exemption:The tcs will be zero or exempt when the buyer buys the goods for manufacturing or reproduction and not for sale. In this condition the buyer supplies Form 27C to the seller mentioning that he is the not a trader and will reprocess The seller needs to deliver copy of Form 27C to the commissioner of income tax. TAN: - Every person who collects tax means the seller needs to apply for TAN no. and the TAN Number should be written to a This TAN number will combine work for TDS/TCS. The seller need to deposit the tax amount within one week from the last day of the month in which the amount received o Return: - the seller who collected TCS need to deposit return with Form 27EQ quarterly.

er the section 206C (1). This is also called TCS and full form is Tax collected at source. ng may be direct purchase, tender or any auction to the specified goods. But these are not covered as buyers in Tax Collected at sou

attracts TCS. There are only some of goods which attract TCS and the list of these items is as follows.

or reproduction and not for sale. he not a trader and will reprocess the goods which are purchased with duly stamped and signature.

AN Number should be written to all challans, Forms & certificate of TDS/TCS.

h in which the amount received of TCS with challan no. 281 also used for tds. The seller also need to issue a certificate to the buyer

as buyers in Tax Collected at source (TCS) Act.

o issue a certificate to the buyer of TCS Form 27 D which can be issued monthly or six monthly basic.

S.S.JHUNJHUNWALA & CO. CHARTRED ACCOUNTANTS


SR NO 1) 2) Telephone no. Website: Emial address: 3) Year Of Incorporation: PARTICULARS Name of Client: DETAILS REQUIRED

4)

Name of Director, Period of holding office in the current year & Provide DIN for each Director.

(1/4/2011-31/03/2012) 2) List of Share holder . (1/4/2011-31/03/2012)

1) 2) 3) 4) 5) 6) 7) 1) 2) 3) 4) 5) 6) 7)

3) 4) 5) 6) 7)

PAN NO. TAN NO. VAT/CST NO. SERVICE TAX REGN NO. Type of Business:

8)

Type of product or/& service provided

9)

Registered Office:

10)

Production Site(s)

11)

Accounting Package :

12)

Assosciate Companies(related party)

1) 2) 3) 4) 5) 6) Half yearly/Quarterly/Monthly Return

13)

Details of Returns a) TDS Return b) VAT/CST Return c) Service Tax Return d) Excise Return Authorised Persons: a) Cash b) Bank c) Sales d) Purchase e) Salary f) Statutory Payments g) Statutory Returns

15)

Name & Designation Of Concerned Person

16) 1 2 3 4 5 6

Mandatory Statutory Registers


Register of Investments not held by company in its own name u/s 49(1) Register of fixed deposit under Acceptance of Deposit Rules, 1975 Register of Securities bought back u/s 77A. Register of Charges u/s 143. Register & Index of Members u/s 150 & 151. Register of Debenture holders u/s 152

7 8 9 10 11 12 13 14 15 16

Register of Beneficial Owner u/s 152A. Register of Foreign Members u/s 157. Processdings of General & Board Meetings (Minutes) u/s 193. Books of Accounts u/s 209 Cost Records u/s 209(1)(d). Register of Contracts in which Directors are interested u/s 301. Register of Directors, Manager & Secretary u/s 303. Register of Directors Shareholding u/s 307. Register of Inter Corporate Loans & Investments u/s 372A. Register of Renewed & Duplicate Share Certificate.

17) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Non-Mandatory Statutory Registers


Director Attendance book. Shareholder/Proxy Attendance book. Register of Sealed Documents. Register of Share Application & Allotment. Register of Share Transfer/ Transmission. Register of Dividend. Register of Power of Attorney/Probate etc. Register of Dividend Mandate. Register of Bank Account Particulars. Register of Electronic Clearing Service. Register of Fixed Assets. Register of Form 24AA from Directors Register of Nominations received. Register of Share Warrants. Register of Proxies.

DETAILS REQUIRED

alf yearly/Quarterly/Monthly Return

me & Designation Of Concerned Person

Maintained/ Non-Maintained

Maintained/ Non-Maintained

Maharashtra Value Added Tax Act


INTRODUCTION 1. The system of Value Added Tax (VAT) has been implemented, in the State of Maharashtra,

2. The following Acts have been repealed on introduction of VAT: i. ii. iii. iv. The Bombay Sales Tax Act, 1959, (BST)

The Maharashtra Sales Tax on the Transfer of Property in goods involved in t

The Maharashtra Sales Tax on the Transfer of the Right to use any goods for The Bombay Sales of Motor Spirit Taxation Act, 1958.

3. Thus all transactions of purchase and sales of goods, within the State of Maharashtra, which

4. There will be only one tax; i.e., VAT no separate Purchase Tax, Turnover Tax, Resale Tax, S

5. No Concessional Forms such as Form 14, 14A, 14B, 13A and BC Form etc., which used t

6. No Resales: All transactions of sales of goods, as well as deemed sale of goods such as Wo

7. Immediate Input Tax Credit, in the month/quarter in which the eligible goods purchased.

8. Composition Schemes for Retailers, Hoteliers, Caterers, Bakers, 2nd Hand Motor Vehicle

9. CST will continue for the time being. Thus all transactions of Inter-State Sales, Export,

10.

Tax payable by a Dealer: VAT = Tax on Sales- Input Tax Credit- Credit b/f

INCIDENCE AND LEVY OF TAX

As per the provisions of MVAT, only a dealer is liable to pay tax on the turnover of sales within However an agriculturist, educational institution and transporters shall not be deemed to be a

Dealers liable to pay Tax: [Sec 3]

1. The dealers, holding a valid registration certificate under the earlier laws, whose turn

2. The dealers, holding a valid registration certificate under the earlier laws, whose turn

3. New dealers, whose turnover of sales exceeds the prescribed limits during any yea

4. A dealer, who becomes liable to pay tax under CST Act, although his turnover of sale

5. A successor in business of any dealer shall become liable to pay tax on and from the

6. A dealer, applying for voluntary registration, shall be liable to pay tax from the date In Capital Registration [Sec 16, R 8]

Every dealer, who becomes liable to pay tax under the provisions of MVAT, shall apply for regi Turnover limits for the purpose of Liability/Registration [Sec 3(4)]

Category of dealer Importer Others

It may be noted while the total turnover of Rs. 1,00,000/- and 5,00,000/- is in respect of Turn

Both the conditions have to be satisfied for the purposes of liability/registration under this cate Documents required for the purposes of Registration

The Commissioner of Sales Tax, Maharashtra, has issued a circular dated 4th May, 2005, wher

Documents to be submitted along with the application for registration:

(Note: Copies of documents must be self-attested and are subject to verification from the orig G. In case of fresh registration: 1. Proof of constitution of business (as appropriate):

i.

ii.

iii.

iv. H.

2. Proof of permanent residential address* (please provide at least 2 docum i. ii. iii. iv. Copy of ration card. Copy of passport. Copy of driving licence. Copy of election photo identity card.

v. vi.

Copy of property card or latest receipt of property tax of Mu

Copy of latest paid electricity bill in the name of the applican

3. Proof of place of business: i.

ii.

4. 5. Two latest passport size photographs of the applicant **

6. Copy of Income Tax Assessment Order having PAN or copy of PAN car

7. Challan in original showing payment of registration fee.

I. Registration in case of change in constitution of the dealer:

2. Proof of change in constitution (e.g. if proprietary dealer converted to partner 3. Copy of latest return-cum-challan. 4. Challan in original showing payment of registration fee. 5. PAN of new firm.

J. Registration in case of change in place of business: 0. Proof of new place of business as given in A-3 above. 1. Copy of latest return-cum-challan of the dealer.

2. Challan in original showing payment of registration fee.

K. Registration in case of transfer of business: 0. All documents from 1 to 6 given in A. 1. Copy of transfer deed. 2. Copy of latest return-cum-challan of the original dealer.

* In case of partnership firm, proof of residence has to be provided for all partne ** In case of partnership firm, photographs of only applicant partner need to be

Further, in case of Voluntary Registration, it is necessary that the applicant de L. Rate of Tax: [Secs. 5 & 6] as per Schedules:

Schedule A

Schedule B

Schedule C

Schedule D

Schedule E Tax payable by a Dealer: [Sec 4]

A dealer is liable to pay tax on the turnover of sales of goods, within the State, as per the rate Tax Period

Tax Period in relation to a dealer may be a Calendar Month, Quarter (a period of three month; FILING OF RETURNS AND PAYMENT OF TAXES

Every Registered Dealer shall be required to file correct, complete and self-consistent return, i Periodicity and due date: Category of Dealers (a)

(b)

(c)

Tax Liability for the purpose means aggregate of taxes payable by a registered dealer, in res Special provision for first & last return:

New dealers to file their first return from 1st April to the end of the quarter in which registratio

The last return, in cases of closure/transfer of business or shifting of place of business etc., to Return Forms and Payment of Tax:

All such returns, whether monthly, quarterly or six monthly have to be filed in prescribed form The tax payable, if any, as per return, shall be paid in to the Government Treasury along with

In case of delayed payments, interest is payable @ 15% p.a. Such interest is mandatory and s

If tax payable for any period is nil or there is credit c/f, the return shall be submitted to the off

Revised return, for any period, can be filed within 6 months from the end of year in which such INPUT TAX CREDIT (ITC) (SET OFF): - [Sec 48, Rules 51 to 56]

Eligibility: All registered dealers, whether manufacturer or traders, eligible to take full set o

Entry Tax: The amount of entry tax, paid by a registered dealer on the goods the sale of w

ITC on Capital Goods: Tax paid on certain items of capital goods (defined) such as machin

ITC on Miscellaneous Goods: The amount of Vat paid on purchase of miscellaneous good

ITC on Fuel: Tax paid on purchase of goods, which is used as fuel, shall be eligible for set o

ITC on Opening Stock: The goods which is held as closing stock as on 31st March 2005, b

Note: For claiming set off on opening stock, the Registered Dealer (Reseller) shall file a detaile

Reduction in Set off: The amount of set off, available to a registered dealer, shall be reduce xiii. xiv. xv. xvi. xvii. xviii. xix. xx. 4% of the purchase price of respective goods, if taxable goods used as fuel.

4% of the purchase price of respective goods, if taxable goods used in manu 4% of the purchase price of respective packing material used in the packing

4% of the purchase price of respective goods, if taxable goods sent to any o

Specified percentage of set off, if taxable goods used in Works Contract for w

In case of Liquor, sold by dealers holding Liquor Vendor Licence in Form FL-I

In case of dealers, whose total receipts on account of sale are less than 50%

In case of closure of business, the set off on goods held in stock (other than

Wherever such reduction in se toff is required to be done, it shall be done in the tax per

If, for the purpose of reduction of set off, wherever required, it is not possible to identif Condition for grant of set off:

21. 22. 23. 24. 25. 26.

Set-off to be allowed only to a registered dealer. A valid Tax Invoice is must to claim set off.

Proper maintenance of account of all the purchases in a chronological order s

The set-off on eligible goods, purchased on or after 1st April 2005, has to be

The set-off on opening stock (closing stock as on 31-3-2005) has to be claim The set-off on eligible assets, held in stock as on 31st March 2005, and sold

No Set off: - No set-off, under any Rule shall be admissible in respect of; aa. bb. cc. dd. ee. ff. gg. hh. ii.

Purchase of motor vehicles (other than goods vehicles) which are treated by Purchase of Motor Spirit by any dealer other than a dealer in Motor Spirit. Purchase of Crude Oil, used by an oil refinery for refining. Any purchase of consumables or capital assets by a job worker (labour job),

Any purchase made by a dealer holding Entitlement Certificate under a Pack Any purchase of goods of incorporeal or intangible nature other than Import Tax paid on works contracts in building construction.

Purchases of building material, which are not resold but used in the activity o Purchases of Office Equipments, Furniture, Fixture and Electric Installations,

It may further be noted that: jj. kk. ll. mm.

Small dealers/retailers, hoteliers, caterers, bakers etc., opting for Compositio There is no setoff of CST paid on inter-State purchases.

There is no set off for any other taxes paid such as excise duty, import duty,

No setoff of taxes paid on purchases affected before the date of registration

Credit C/f and Credit B/f: If during a tax period (month/quarter/six months) the tax on to

Goods Return, Debit/Credit Notes: Section 63 (5) and (6) of the MVAT Act provides that

Exports: Exports are treated as zero-rated. Thus no tax is payable on export of goods out o

However, the Trading exporters (who were earlier purchasing goods against Form 14) may pu

Inter-State Sales: The transactions of inter-State sales and inter-state movement of good

Essential ingredients of a Tax Invoice: Under the scheme of VAT, the most important do xl. xli. xlii. xliii. xliv. xlv. xlvi. xlvii. The word Tax Invoice in bold letter at the top or at a prominent place. Name, Address and Registration Number of Selling Dealer. Name and Address of the Purchasing Dealer. Serial Number and Date Description, Quantity and Price of the Goods sold. The amount of tax charged, to be shown separately. Signed by the selling dealer or a person authorized by him. A declaration u/r 77(1).

BILL OR CASH MEMORANDUM

Section 86(6) requires every registered dealer to issue, at his option, either a Tax Invoice or B

The dealer, choosing to issue Tax Invoice must comply with the requirements prescribed in se

The dealers, who have opted for Composition Scheme u/ss 42(1) and 42(2), are not entitled t

A bill or cash memorandum should be serially numbered, dated and signed by the dealer or his

A duplicate copy of all such bills/cash memorandum or Tax Invoice is required to be preserved COMPOSITION SCHEMES

Sections 42 (1) and (2) provides for Composition Schemes for various classes of dealers, as m

(1) Restaurants, Clubs and Hotels (2) Caterers (3) Bakers (4) Retailers and (5) Dealers in 2nd WORKS CONTRACTS

As there is no separate act governing works contract transactions, all such transactions are no

Accordingly the value of the goods at the time of the transfer of property in the goods (whethe

xlviii. xlix. l. li. lii. liii. liv. lv.

labour and service charges for the execution of the works where the labour a amounts paid by way of price for sub-contract, if any, to sub-contractors; charges for planning, designing and architects fees;

charges for obtaining on hire or otherwise, machinery and tools for the execu

cost of consumables such as water, electricity, fuel used in the execution of w

cost of establishment of the contractor to the extent to which it is relatable t

other similar expenses relatable to the said supply of labour and services, wh

profit earned by the contractor to the extent it is relatable to the supply of sa

Provided that where the contractor has not maintained accounts which enable a proper WORKS CONTRACT SALE PRICE TABLE

Serial No. -1

10

11

12

13

14

*The percentage is to be applied after first deducting from the total contract price, the amoun

The value of goods so arrived at under Rule 58 (1) shall, for the purposes of levy of tax, be th

Note: The dealer, opting to pay tax as per the above scheme, is entitled to take full input tax c WORKS CONTRACT COMPOSITION SCHEME

Section 42(3) provides for a Works Contract Composition Scheme, whereby a dealer, at his op

However, in respect of such contract/s, where the dealer has chosen to pay tax by way of com

Note: A dealer, executing works contract, whether chooses to pay tax u/r 58 or under the com WORKS CONTRACT TDS PROVISIONS Section 31 provides that the Commissioner may, by notification, require any dealer or person

11.

All such employers shall have to: . a. b.

Take a Tax Deduction Number (Works Contract) from the Sales Tax Departm

Deduct tax, at prescribed rate, from the amount paid or payable to a contrac

Deposit the amount so deducted with the Govt. treasury within 10 days from

c. d. e. f. g. Notes: 8. 9. 10. 11. 12.

Issue a certificate of deduction of tax, immediately, in Form 402.

Submit monthly (quarterly) statement of tax deducted at source, in respect t Maintain necessary records in prescribed format, Form 404.

File an annual return of TDS, in Form 405, within 3 months from the end of t

Attend and produce records before the assessing authority as and when aske

The TDS provisions are applicable only to specified employers.

The tax is required to be deducted only in such cases, where payment to a d

There are provisions for reduced rate of deduction or no deduction certificate

A contractor, awarding sub-contracts, is not required to deduct TDS from suc

TDS provisions are not applicable in respect of works contract liable to tax un

Employers notified for the purposes of TDS SCHEDULE Serial No.

-1

-1

-2

-3

-4

-5

-6

-7

-8

Note: No such deduction shall be made where the amount or the aggregate of the amount p Tax on Right to Use Goods (LEASING AND HIRE CHANGES)

Earlier the tax on leasing and/or hire charges was payable under the provisions of Maharashtra Sale of Food by Residential Hotels

Rule 59 provides for determination of taxable turnover of sales of goods (food) in case of resid Reduction in Sale Price in certain cases

13. If a dealer has chosen not to collect tax separately from its customers, the ta [Rule 57 (1)] Sale Price * Rate of Tax/100+Rate of Tax

14.

In case of a dealer selling goods, originally manufactured by a dealer enjoyin

SALE/PURCHASE OF GOODS BY PSI UNITS PSI Units: The units enjoying benefits, whether by way of exemption or deferral, under the

Resale of goods purchased from PSI Units: As the units, enjoying exemption, do not cha MAINTENANCE OF ACCOUNTS

Section 63(1) requires, every dealer liable to pay tax under the MVAT Act, and any other deale

Sections 63(2) and (3) empowers the Commissioner to give direction to any dealer or any clas Section 63(4) requires every dealer to keep all his accounts, registers and documents relating

Section 63(5) requires goods return claims to be made in the period (month, quarter, six mon

Similarly section 63(6) requires that the effect of all such debit notes or credit notes, which are Rule 68 requires every registered dealer to preserve all books of account, registers and other AUDIT OF ACCOUNTS

Section 61(1) of the MVAT Act provides that: Every dealer liable to pay tax shall: o. p.

if his turnover of sales or, as the case may be, of purchases, exceed or exce if he is a dealer or person who holds a liquor licence in prescribed form,

get his accounts in respect of such year audited by an Accountant, within the prescribed period

Explanation. For the purposes of this section, "Accountant" means a Chartered Accountant w Rule 65. The report of audit under section 61 shall be in Form 704.

Rule 66. The report of the audit under section 61 shall be submitted within eight months of the

Failure to furnish such report, in time, may attract penalty equal to one-tenth per cent of the t

Provided that the dealer fails to furnish a copy of such report within the aforesaid period but fi

te of Maharashtra, w.e.f. 1st April, 2005.

goods involved in the execution of Works Contract (Re-enacted) Act, 1989.

o use any goods for any Purpose Act, (Lease Tax) and

Maharashtra, which used to be covered under the above Acts, till 31st March 2005, will now be governed by th

Tax, Resale Tax, Surcharge, Works Contract Tax, and Lease Tax etc.

etc., which used to be there under earlier law.

f goods such as Works Contracts, Leases etc., by a dealer, within the State of Maharashtra, are liable to tax un

e goods purchased.

Hand Motor Vehicle dealers and Contractors etc.

tate Sales, Export, Import, Deemed Export, High Seas sales, Inter-State Branch/Consignment Transfers, Sales

t- Credit b/f

over of sales within the State of Maharashtra. The term dealer has been defined u/s 2(8) of the Act. It includes

be deemed to be a dealer (subject to fulfilment of conditions).

er laws, whose turnover of either of sales or purchases exceeds the specified limits during the financial year 200

er laws, whose turnover of either of sales or purchases has not exceeded the specified limits during the financia

mits during any year, commencing on or after 1st April, 2005, liable to pay tax from the date on which such lim

his turnover of sales within the State does not exceeds the prescribed limits, shall become liable to tax under M

ax on and from the date of succession.

tax from the date of registration.

shall apply for registration to the prescribed authority, in Form 101, within 30 days from the date of such liabili

Turnov er of taxable goods Total purcha turnover sed or of sales sold Rs. Rs. 1,00,000 10,000 Rs. Rs. 5,00,000 10,000

s in respect of Turnover of Sales (which includes all sales whether tax free or taxable), the turnover limit of Rs.

tion under this category. [Sec 3(4)]

th May, 2005, whereby a dealer is required to submit following documents along with the application for registr

ation from the original)

In case of proprietary firm: In case of partnership firm:(Regist ered or unregistered )

No proof required . Copy of partners hip deed.

In case of company:

Copy of Memora ndum of Associati on and Articles of Associati on.

Copy of In case of relevant other docume constitution: nts.

de at least 2 documents out of the following documents):

property tax of Municipal Corporation/Council/ Grampanchayat as the case may be.

ame of the applicant.

In case of owner:

Proof of ownershi p of premise s, viz. copy of property card or ownershi p deed or agreeme nt with the builder or any other relevant docume nts.

In case of Proof of tenant/sub- tenancy/ tenant: subtenancy like copy of tenancy agreeme nt or rent receipt or leave and licence or consent letter, etc.

r copy of PAN card (in case of Proprietary business: PAN of Proprietor; in case of partnership business: PAN o

onverted to partnership firm then copy of Partnership deed, etc.).

vided for all partners, in case of body corporate, proof of residence of applicant.

partner need to be submitted. In case of corporate bodies, the details of place of residence and PAN, etc. shall

hat the applicant dealer is having a current bank account and such dealer has to be introduced either by a regis

Essential Commod ities (Tax free) Nil Gold, Silver, Precious Stones, Pearls etc.

1%

Declared Goods, Industria l Inputs,a nd such other specified goods

4%

Foreign Liquor, Country Liquor etc.Moto r Spirits at specified rates All other goods (not covered by A to D)

20%

12.50%

ate, as per the rates specified in the schedules. The tax so payable for any tax period shall be reduced by the a

od of three month; i.e., Apr to Jun, July to Sep, Oct to Dec and Jan to Mar) or six months (prescribed period of

consistent return, in prescribed form, by the due date. [Sec 20, Rules 17 to 20]

Specified Dealers Dealers covered by Notification u/s 41(4)

Periodic Due ity date Monthly 15 days

Retailers- Who have 6 opted for Composition Monthly Scheme Others-

25 days

(i)

Tax 6 liability Monthly during previous year,Rs. 12000/or less

25 days

(ii)

Tax Quarterly 25 days liability during previous year, more than Rs.1200 0/- but does not exceeds Rs. 1 lakh Tax Monthly liability during previous year, exceeds Rs. 1 lakh 25 days(Fo r the months of Jan and Feb, 20 days)

(iii)

tered dealer, in respect of all places of business within the State of Maharashtra, under the Central Sales Tax A

in which registration is granted, and, thereafter all quarterly returns till the end of year. (Within 25 days from t

of business etc., to be filed up to the date of event. (Monthly, quarterly or 6 monthly as the case may be, as pe

in prescribed form (Return cum challan). There are separate forms prescribed for various categories of dealers

reasury along with the return. [Sec 32, R 41]

is mandatory and shall be paid along with the return.

submitted to the office of the assessing officer. (However, in Mumbai, at the special counters set up for the purp

f year in which such tax period falls or before receipt of notice for assessment, whichever is earlier. [Sec 20(4)]

ble to take full set off of the taxes paid on inputs i.e. Value Added Tax paid, within the State of Maharashtra, on

goods the sale of which is liable for VAT under MVAT, will be eligible for full setoff.

ed) such as machinery, components, parts and spares etc. are also eligible for full set off.

miscellaneous goods, debited to Profit & Loss A/c (such as printing and stationery, repairs, sales promotion etc.)

be eligible for set off, in excess of 4%.

31st March 2005, by a registered dealer, who is a trader/reseller, will be liable for tax, as and when sold, under

) shall file a detailed statement in Form No. 6, to the assessing officer, on or before 30-4-2005. (Date extended

er, shall be reduced to the extent as provided, under the following circumstances: -

oods used as fuel.

oods used in manufacture of tax-free goods.

sed in the packing of tax-free goods.

oods sent to any other State in India as Branch Transfer or on Consignment.

Works Contract for which the dealer has chosen to pay tax under the Composition Scheme.

icence in Form FL-II, CL-III, and CL/FL/TOD/III, as per formula, if the actual sale price is less than MRP. are less than 50% of total gross receipts of business then setoff restricted to corresponding purchases.

n stock (other than capital assets), on the date of closure, to be disallowed and accordingly be reduced fully.

done in the tax period in which such contingency arises.

t possible to identify the corresponding purchases then proportionate reduction on FIFO basis.

hronological order stating therein the date on which the goods so purchased, the name and registration numbe

pril 2005, has to be claimed in the tax period in which the goods has been purchased (entered in the books of a

05) has to be claimed in the first return to be filed for the tax period commencing 1st April 2005.

rch 2005, and sold on or before 31st December 2005, to be claimed in the tax period in which such assets have

hich are treated by the claimant dealer as capital assets and parts components, accessories thereof unless the

r in Motor Spirit.

orker (labour job), whose only sales are waste or scrap of goods obtained from such labour job.

icate under a Package Scheme of Incentives. (Such units are entitled for refund of tax paid on purchases).

other than Import Licence, Exim Scrips, Special import Licence, Duty Free Advance Licence, Export Permit Quo

sed in the activity of building construction.

ctric Installations, treated by the claimant dealer as capital assets.

ting for Composition Scheme, u/ss 42(1) and 42(2) of MVAT Act, are not entitled for any set off.

duty, import duty, service tax, octroi or such other levy or levies.

date of registration.

onths) the tax on total turnover of sales is less than the amount of input tax credit, then such excess amount o

T Act provides that the amount of goods returned during any period shall be reduced from the total turnover of

port of goods out of India. However full set off available of input tax paid on purchases, from within the state o

st Form 14) may purchase such goods against Form H of CST Act, provided all other conditions of Sec.5(3) of C

movement of goods are governed by the CST Act. Thus the tax on such sale is levied according to the provision

most important document is tax invoice. A registered dealer is entitled to claim set-off only on the basis of a v

minent place.

a Tax Invoice or Bill/Cash Memorandum, for every sale made by him. (Irrespective of the amount or value of

ts prescribed in sec 86(2), enumerated above.

), are not entitled to issue a Tax Invoice. Such dealers shall issue a Bill or Cash Memorandum.

by the dealer or his servant or manager. Such bill or cash memorandum shall contain such particulars as may b

ed to be preserved for a period of three years from the end of the year in which sale took place.

es of dealers, as may be notified by the State Government from time to time. The dealers opting for such comp (5) Dealers in 2nd Hand Motor Vehicles.

transactions are now taxable as deemed sales under the MVAT Act. The rate of tax, on such deemed sales of go

the goods (whether as goods or in some other form) involved in the execution of works contract has to be det

where the labour and service done in relation to the goods is subsequent to the said transfer of property;

sub-contractors;

tools for the execution of the works contract;

n the execution of works contract, the property in which is not transferred in the course of execution of the wor

hich it is relatable to supply of the said labour and services;

ur and services, where the labour and services are subsequent to the said transfer of property; to the supply of said labour and services:

ch enable a proper evaluation of the different deductions as above or where the Commissioner finds that the ac

*Amou nt to be deduct ed from the Type of contrac Works t price contract (%) -2 -3 Installation of plant and machinery Installation of air conditioners and air coolers

Fifteen per cent.

Ten per cent.

Installation of elevators (lifts) and Fifteen escalators per cent.

Fixing of marble slabs, polished granite stones and tiles (other Twenty than mosaic five per tiles) cent Civil works like construction of buildings, bridges, Thirty roads, etc. per cent. Construction of railway coaches or under carriages supplied by Thirty Railways per cent.

Ship and boat building including construction of barges, ferries, tugs, trawlers and Twenty dragger per cent. Fixing of sanitary fittings for plumbing, drainage Fifteen and the like per cent. Painting and Twenty polishing per cent.

Construction of bodies of motor vehicles and construction Twenty of trucks per cent. Laying of pipes Tyre retreading Dyeing and printing of textiles Any other works contract Twenty per cent. Forty per cent. Forty per cent. Twenty per cent.

t price, the amounts paid by way of price for the entire sub-contract to sub-contractors, if any.

f levy of tax, be the sale price or, as the case may be, the purchase price relating to the transfer of property in

take full input tax credit; i.e., full setoff of MVAT paid on purchases used in works contract.

a dealer, at his option, may choose to pay tax @ 8% on the total contract value. (After deducting therefro

tax by way of composition, the amount of setoff available on inputs will be restricted to 64% of the total amou

8 or under the composition scheme, u/s 42(3), is entitled to issue tax invoice in respect of all such sales effecte

y dealer or person or class of dealers or persons (hereafter referred as the employer) to deduct tax on such am

Sales Tax Department. Application to be made, in Form 401, within three months from the day he becomes lia

ayable to a contractor during a given period.

within 10 days from the end of month in which such tax deducted or required to be deducted.

source, in respect to each of such contractor, to the respective prescribed officer, in Form 403, within 20 days f

s from the end of the year.

y as and when asked to do so.

ere payment to a dealer (contractor) is Rs. 5,00,000/- or more during a year.

eduction certificate, granted by the Commissioner, on an application, in Form 410, made by the concerned dea

educt TDS from such sub-contractor.

ract liable to tax under the CST Act.

Classes of Amount Employers to be deduct ed -2 -3

The Central Government and any State Government

Two per cent of the amount payable as above in the case of a contract or who is a registere d dealer and four per cent in any other case

All do Industrial, Commercial or Trading undertaking s, Company or Corporation of the Central Government or of any State Government , whether set up under any special law or not, and a Port Trust set up under the Major Ports Act, 1963

A Company registered under the Companies Act, 1956

do

A local do authority, including a Municipal Corporation, Municipal Council, Zilla Parishad, and Contonment Board

A Co do operative Society including a Co-operative Housing Society registered under the Maharashtra Co-operative Societies Act, 1960 A registered do dealer under the Maharashtra Value Added Tax Act, 2002 An do Insurance or Finance Corporation or Company; and any Bank included in the Second Schedule to the Reserve Bank of India Act, 1934, and any Scheduled Bank recognised by the Reserve Bank of India

Trusts, whether public or private

do

te of the amount payable to a dealer by such employer is less than rupees 5 lakh during any year.

ions of Maharashtra Tax on Right to Use Goods Act. But now, as there is no separate Act, all such transactions

od) in case of residential hotels charging composite amount, for lodging and boarding, which is inclusive of brea

s customers, the tax payable by him on the turnover of sales shall be calculated by reducing from the turnover

by a dealer enjoying exemption under the Package Scheme of Incentive, and the tax is not recovered separate

deferral, under the Package Scheme of Incentives may continue to enjoy the same. However they will now have

emption, do not charge tax on their sale, the subsequent dealer will not be in a position to take input tax credit.

and any other dealer who is required to do so by the Commissioner, to maintain a true account of the value of g

y dealer or any class of dealers to maintain accounts and records in such form and in such manner, as may be d

documents relating to his stock of goods, purchases, sales, delivery of goods and payments made or received to

h, quarter, six months) in which appropriate entries are made in the books of account.

dit notes, which are in the nature of increasing or decreasing either sale price or purchase price of goods, shall

egisters and other documents pertaining to stocks, purchases, dispatches and delivery of goods and payments

es, exceed or exceeds rupees forty lakh in any year, or

escribed form,

he prescribed period from the end of that year, and furnish within that period the report of such audit, in the pre

rtered Accountant within the meaning of the Chartered Accountants Act, 1949.

eight months of the end of the year to which the report relates.

th per cent of the total sales or as the case may be, purchases or a sum of Rs one lakh, whichever is less.

resaid period but files it within one month of the end of the said period and the dealer proves to the satisfaction

now be governed by the Maharashtra Value Added Tax Act, 2002, (MVAT), as amended by Maharashtra Value A

ra, are liable to tax under MVAT.

ment Transfers, Sales in Transit etc. will continue to be governed by the provisions of CST Act. All forms, presc

of the Act. It includes all person or persons who buys or sells goods in the State whether for commission, remu

g the financial year 2004-05, shall be deemed to be registered dealer under MVAT Act and shall, therefore be lia

mits during the financial year 2004-05, but who have opted to continue their registration certificate (by applying

date on which such limit exceeds.

e liable to tax under MVAT with effect from the same date.

the date of such liability.

e turnover limit of Rs. 10,000/- is in respect of taxable goods whether purchased or sold.

application for registration in Form 101:

ership business: PAN of partnership firm and of all partners; and in case of registered company: PAN of the com

ce and PAN, etc. shall be required to be furnished only for the signatory to the application.

duced either by a registered dealer or by an advocate, chartered accountant or sales tax practitioner. (There is

ll be reduced by the amount of input tax credit (set off) for which the dealer is eligible during the same tax per

s (prescribed period of six months; i.e., April to September and October to March).

he Central Sales Tax Act and MVAT Act/Bombay Sales Tax Act, after adjustment of amount of set off claimed.

(Within 25 days from the end of each quarter).

he case may be, as per the due dates mentioned herein above).

s categories of dealers (Forms 201 to 214).

ters set up for the purpose at Mazgaon Sales Tax Office). is earlier. [Sec 20(4)]

ate of Maharashtra, on purchases of Raw Material, Finished Goods and Packing Material.

, sales promotion etc.) also eligible for full set off.

and when sold, under MVAT. To avoid double taxation, it is provided that the taxes paid on such goods under t

-2005. (Date extended till 15th June 2005).

less than MRP.

ding purchases.

ly be reduced fully.

nd registration number of the selling dealer, tax invoice number & date, the amount of purchase price paid and

tered in the books of account).

which such assets have been resold.

ies thereof unless the dealer is engaged in the business of trading in motor vehicles or transferring the Right to

aid on purchases).

ce, Export Permit Quota etc.

such excess amount of credit may either be adjusted by the dealer against his tax liability under the CST Act fo

m the total turnover of sales/purchase of that period in which the goods returned, provided that the goods has

rom within the state of Maharashtra, used in such exports. As there will be no concessional forms under MVAT,

ditions of Sec.5(3) of CST Act are fulfilled.

ording to the provisions of CST Act. Such transactions are not liable for VAT. However full input tax credit is av

nly on the basis of a valid tax invoice. Set off is not available on purchases affected through a bill or cash mem

he amount or value of each such sale).

ch particulars as may be required/as may be prescribed. It shall also contain a declaration as provided u/r 77(3

s opting for such composition schemes shall pay tax at such rates, with such conditions, as may be prescribed

uch deemed sales of goods, used in the execution of works contract, shall remain same as prescribed in the afo

contract has to be determined by effecting the following deductions from the value of entire contract in so for a

nsfer of property;

of execution of the works contract;

sioner finds that the accounts maintained by the contractor are not sufficiently clear or intelligible, the contracto

transfer of property in goods (whether as goods or in some other form) involved in the execution of a works co

ter deducting therefrom the amount paid towards sub-contract, if any.)

64% of the total amount of setoff for respective goods used in such contract/s.

of all such sales effected by him by way of execution of works contract, by charging tax separately in such tax i

deduct tax on such amount payable on the purchases effected by them, as may be notified.

he day he becomes liable to deduct TDS.

m 403, within 20 days from the end of the month.

by the concerned dealer (contractor).

any year.

, all such transactions of deemed sale shall be liable to tax under MVAT Act at the same rate of tax as prescribe

hich is inclusive of breakfast, lunch, or dinner or any such combination. The turnover in such cases has to be de

cing from the turnover of sales an amount arrived at through the following formula:

ot recovered separately in his purchase invoice. The taxable turnover shall be determined by reducing from the

ever they will now have to affect their purchases by paying full tax and claim refund of such tax paid on their pu

o take input tax credit. It is provided, therefore, that such subsequent dealer shall pay tax under the reduced v

count of the value of goods sold or purchased by him.

h manner, as may be directed by him in writing.

nts made or received towards purchase or sale of goods, at his place of business.

e price of goods, shall be taken in the return for the period in which entries for such debit/credit notes are take goods and payments made towards sale or purchase of goods for a period of not less than five years from the

of such audit, in the prescribed form, duly signed and verified by such accountant and setting forth such particu

whichever is less.

oves to the satisfaction of the Commissioner that the delay was on account of factors beyond his control, then t

ded by Maharashtra Value Added Tax Amendment Bill, 2005.

of CST Act. All forms, prescribed under the CST Act, such as Form C, D, E-I, E-II, F and H will continue as it is.

hether for commission, remuneration or otherwise in the course of their business or in connection with or incide

ct and shall, therefore be liable to pay tax w.e.f. 1st April, 2005.

tion certificate (by applying to assessing officer in specified format), shall also be deemed to be registered deal

ed company: PAN of the company; in case of HUF: PAN of HUF and Karta etc.).

s tax practitioner. (There is no requirement for any deposit or advance payment as was there under the earlier

ble during the same tax period.

amount of set off claimed.

paid on such goods under the earlier Laws (BST, WCT, Lease Tax, Entry Tax) will be allowed as set-off, provide

of purchase price paid and the amount of tax paid separately.

or transferring the Right to Use (Leasing).

ability under the CST Act for the same period or may be c/f to the next period. The Credit c/f of one period sha

rovided that the goods has been returned within a period of six month from the date of sale or purchase thereo

essional forms under MVAT, the exporters may have to claim refund of the VAT paid on their purchases (inputs)

er full input tax credit is available for the value added tax paid in Maharashtra. (Except in case of branch transf through a bill or cash memorandum. A Tax Invoice is must to claim input tax credit (set off). To be a valid tax

ration as provided u/r 77(3).

ons, as may be prescribed in the scheme. Accordingly the Government of Maharashtra has notified different ty

me as prescribed in the aforesaid schedules to the respective goods. However the sale price of such goods has

of entire contract in so for as the amounts relating to the deduction pertain to the said works contract:

or intelligible, the contractor or, as the case may be, the Commissioner may in lieu of the deductions as above

the execution of a works contract.

tax separately in such tax invoice.

ame rate of tax as prescribed in the aforesaid schedules.

r in such cases has to be determined by applying specified percentage on the amount of such composite charge

mined by reducing from the sale price, the amount of purchase price paid in respect of such goods including th

of such tax paid on their purchases.

ay tax under the reduced value method; i.e., reducing the sale price by the amount of purchase price. Thus tax

debit/credit notes are taken in the books of account.

ss than five years from the expiry of year to which they relate.

d setting forth such particulars and certificates as may be prescribed.

s beyond his control, then the Commissioner may condone the delay

and H will continue as it is. The transactions covered by CST Act will remain outside the purview of MVAT.

in connection with or incidental to or consequential to engagement in such business. The term includes a Broke

eemed to be registered dealer under MVAT Act and shall, therefore be liable to pay tax w.e.f. 1st April, 2005.

was there under the earlier law).

e allowed as set-off, provided no set off has been claimed on such goods under any of the earlier Laws. The am

Credit c/f of one period shall become the Credit b/f for the next period. The excess credit may be carried forwa

e of sale or purchase thereof as the case my be. Similarly other debit and credit notes, which are in the nature on their purchases (inputs).

ept in case of branch transfers/consignments, where there will be a retention of 4%) (set off). To be a valid tax invoice, section 86(2) provides that it shall contain the following particulars:

tra has notified different types of composition schemes for following classes of dealers:

ale price of such goods has to be determined in accordance with the provisions contained in Rule 58 of the Mah

aid works contract:

of the deductions as above provide a lump sum deduction as provided in the Table below and determine accor

nt of such composite charges.

of such goods including the price of goods used in the packing if packing is charged separately. [Rule 57(2)]

of purchase price. Thus tax calculated on the amount of value addition only. (In such a case the dealer may ha

the purview of MVAT.

. The term includes a Broker, Commission Agent, Auctioneer, Public Charitable Trusts, Clubs, Association of Per

ax w.e.f. 1st April, 2005.

of the earlier Laws. The amount of such set off shall be worked out as per the provisions of Rule 44D of the Bom

credit may be carried forward in this manner till the end of the accounting year. The balance, if any, thereafter

es, which are in the nature of increasing or reducing the sale price and/or the purchase price shall be given effe

ollowing particulars:

ained in Rule 58 of the Maharashtra Value Added Tax Rules, 2005.

below and determine accordingly the sale price of the goods at the time of the said transfer of property.

d separately. [Rule 57(2)]

ch a case the dealer may have to disclose his purchase price in the sale invoice).

s, Clubs, Association of Persons, Departments of Union Government and State Government, Customs, Port Tru

sions of Rule 44D of the Bombay Sales Tax Rules 1959. Thus sales tax and purchase tax, if any, paid on such p

balance, if any, thereafter shall be claimed as a refund from the Department.

ase price shall be given effect in the month in which such debit/credit note has been entered in the books of ac

transfer of property.

ernment, Customs, Port Trusts, Railways, Insurance & Financial Corporations, Transport Corporations, Local aut

tax, if any, paid on such purchases will be eligible for set-off. (No set off of TOT, SC and RST). The goods purc

entered in the books of account of the dealer. Thus the amount of set off, for that period, shall get increased o

port Corporations, Local authorities, Shipping and Construction Companies, Airlines, Advertising Agencies and a

C and RST). The goods purchased against Form 31 will be subject to the deduction as provided in BST Rules. It

period, shall get increased or reduced to the extent it related to purchase return and debit/ credit notes having

Advertising Agencies and also any corporation, company, body or authority, which is owned, constituted or sub

as provided in BST Rules. It is further provided that the set off, on such opening stock as on 1st April 2005, ma

d debit/ credit notes having impact on the purchase price of goods.

s owned, constituted or subject to administrative control of the Central Government, any State Government or

ck as on 1st April 2005, may be disallowed if the goods is not sold within a period of nine months from the appo

, any State Government or any local authority.

nine months from the appointed day; i.e., such goods must be sold, or in case of packing material must be use

acking material must be used in packing of

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