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1 FORM - 704 Version 1.2.1

Audit report under section 61 of the Maharashtra Value Added Tax Act, 2002.
2
(See rule 65)
3 PART -1
4 Location of the Sales Tax office of place of business of the dealer 01-Mazgaon
5 AUDIT REPORT AND CERTIFICATION
6 Period Of Audit FROM 01/04/09 TO 31/03/10

7 The audit of M/s JAY TRADERS

holder of Tax Payer Identification Number under the Maharashtra Value Added
8
1 27720064833V
Tax Act, 2002 (hereinafter referred to as" the MVAT Act")
and Tax Payer Identification Number under the Central Sales Tax Act, 1956
9 27720064833C
(hereinafter referred to as"the CST Act" )
10 is conducted by (*) me/us (Chartered accountants/cost accountant) in pursuance of the section 61 of
the MVAT Act
The Tax Audit under the provisions of the Income Tax Act, 1961 was conducted R. D. TRIVEDI &
11
by (*) me/us/ M/s ASSOCIATES
1(A)
Chartered Accountants. We hereby annex a copy of our/their Tax Audit Report
12 09/09/10
dated
alongwith all the annexures to those reports and copies each of the audited (*)
13 a) Profit And Loss Account / Income And Expenditure Account for the year ended 31/03/10
14 b) The audited balance sheet as at 31/03/10

The Tax Audit of the dealer under the provisions of the Income Tax Act, 1961
15
has not been conducted but the Statutory audit is conducted under

16 1(B) Act. Therefore, we have obtained the Audit Report, Balance Sheet as at
and the Profit and Loss Account/Income and Expenditure A/c for the financial
17
year ended on
18 and the same are annexed herewith.
The dealers books of account are not audited under any statute. Therefore, we
19
have obtained the Balance Sheet as at

20 1( C) and the Profit and Loss Account/Income and Expenditure A/c for the financial
year ended on

21 duly certified by the dealer and the same are annexed herewith.
Maintenance of books of accounts, sales tax related records and preparation of financial statements are
the responsibilities of the entity’s management. Our responsibility is to express an opinion on their sales
tax related records based on our audit. We have conducted our audit in accordance with the standard
22 auditing principles generally accepted in India. These standards require that we plan and perform the
audit to obtain reasonable assurance about whether the sales tax related records and financial
statements are free from material mis-statement(s). The audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements An audit also includes
I/we have verified correctness of the tax liability of the dealer in respect of below mentioned sales tax
23 2(A)
returns.
24 TABLE-1

25 Sr. No. Particulars

Dealer is required to file returns (Select
26 1 Quarterly
appropriate Box)
Dealer has filed all the returns as per given
27 2 YES
periodicity.
28 3 Dealer has maintained stock register. NO
29 5 Returns verified (Please Select the appropriate box)
30 (a)(i) Returns under the Maharashtra Value Added Tax Act, 2002 All
31 (ii) Return in Form 405 Not Applicable
32 (b)   Returns under the Central Sales Tax Act, 1956. Available
33 (i)  The dealer has filed returns only for the period in which there is inter-State sales or
sales u/s 5
Since there are no interstate sales or sales u/s. 5 in other periods, the dealer has/has
34 (ii)
not filed returns for such periods.
Subject to my/our remarks about non-compliance, shortcomings and deficiencies in the returns filed and
35 2(B)
tax liability computed and presented in respective schedules and Para-4 of this Part, I/We certify that,-
I/We have obtained all the information and explanations, which to the best of my/our knowledge and
36 a)
belief, were necessary for the purposes of the audit.
I/We have read and followed the instructions for preparation of this audit report. Considering the nature
37 of business of the dealer and the Form in which the dealer is expected to file return(s), I/we have given
the information as required in Part-3 in Schedule(s) along with the applicable annexures.
38 Schedule-I TRUE Schedule-II FALSE Schedule-IIIFALSE Schedule- FALSE
IV
39 Schedule-V FALSE Schedule-V TRUE
40
b)
The Schedule(s) and
41 Annexures applicable for Annexure-A TRUE Annexure-B TRUE Annexure-CFALSE Annexure-DFALSE
42 the dealer are Annexure-E TRUE Annexure-F TRUE Annexure-G Annexure-HFALSE
43 Annexure-I FALSE Annexure- TRUE Annexure- TRUE Annexure- FALSE
44 Annexure- FALSE J 1
Annexure- J 2 J 3
FALSE Annexure- FALSE Annexure-K TRUE
J 4 J 5 J 6
The books of account and other sales tax related records and registers maintained by the dealer
45 c) alongwith sales and purchase invoices as also Cash Memos and other necessary documents are
sufficient for computation the tax liability under the MVAT Act and the CST Act
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The gross turnover of sales and purchases, determined by us, includes all the transactions of sales and
46 d)
purchases concluded during the period under audit.
The adjustment to turnover of sales and or purchases is based on entries made in the books of account
47 e)
during the period under Audit and same are supported by necessary documents.
The deductions claimed from the gross turnover of sales and other adjustments thereto including
48 f) deduction on account of goods return, adjustments on account of discounts as also debit/credit notes
issued or received on account of other reasons, are supported by necessary documents and are in
conformity with the provisions of the relevant Act
Considering the schedule and entry wise classification of goods sold, classification of exempted sales,
49 g) sales at reduced rates are correct. The tax leviable on sales is properly computed by applying applicable
rate of tax and/or composition tax
Computation of set-off admissible in respect of purchases made during the period under Audit and
adjustments thereto are correct. While ascertaining the correctness, *I/We have taken into account the
50 h) factors such as goods returned, adjustments on account of discounts as also debit /credit notes issued
or received on account of other reasons and these claims and adjustments are supported by necessary
documents The Set-off is worked out only on the basis of tax invoices in respect of the purchases
Wherever the dealer has claimed sales against the declarations or certificates; except as given in
51 i) Annexure-H and Annexure-I, all such declarations and certificates are produced before me. I/we have
verified the same and they are in conformity of the provisions related thereto.
Computation of Cumulative Quantum of Benefits (CQB), wherever applicable, is in conformity with the
52 j)
provisions of the Act in this regard.
53 k) The records related to the receipts and dispatches of goods are correct and properly maintained.
54 l) The tax invoices in respect of sales are in conformity with the provisions of law.
55 m) The Bank statements have been examined by *me/us and they are fully reflected in the books of account
*I/we certify that *I/we have visited the principal place of business or a place of business from where
56 n) major business activity is conducted by the dealer. The dealer is conducting his business from the place/
places of business declared by him as his principal place of business/and the additional place of
business
Due professional care has been exercised while auditing the business and based on my observations of
the business processes and practices, stock of inventory and books of account maintained by the dealer,
57 o) I fairly conclude that,-
(i) dealer is dealing in the commodities mentioned in the Part-2 of this report;
(ii) sales tax related records of the dealer reflects true and fair view of the volume and size of the
58 p) I have verified that the purchases effected by the dealer in respect SEZ Unit of the dealer are used in the
said Unit.
3. Out of the aforesaid certificates; the following certificates are negative for the reasons given hereunder or be
59
read with the following information :

60 (a) NIL

61 (b) NIL

62 (c)  NIL

63 (d)  NIL

64 (e) NIL

65 (f) NIL

66 g) NIL

67 h) NIL

68 i) NIL

69 j) NIL
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70 k) NIL

71 l) NIL

72 m) NIL

73 n) NIL

74 o) NIL

75 p) NIL

76 4 COMPUTATION OF TAX LIABILITY AND RECOMMENDATIONS

77 TABLE-2
78 UNDER MAHARASHTRA VALUE ADDED TAX ACT, 2002
Amount as
Amount as per
79 Sr. No. Particulars determined after Difference (Rs.)
returns (Rs.)
audit (Rs.)
Gross Turn-Over of Sales, including taxes as wel
80 i) as Turn-over of Non-Sales Transactions like 18069994 18069994 0
Value of Branch Transfers/ Consignment
Transfers and job work charges
81 ii) Less:- Total allowable Deductions 695012 695012 0
82 iii) Balance Net Turn-over liable for Tax 17374982 17374982 0
83 iv) Tax leviable under the M.V.A.T. Act, 2002 694999 694999 0
84 v) Excess collection under M.V.A.T. Act, 2002 13 13 0
85 vi) Less: Credits available on account of following:
86 (a) Set-off claimed: 585388 585388 0
Amount of tax paid under MVAT Act as per
87 (b) 109624 109624 0
ANNEXURE-A (including interest and RAO)
Credit of tax as per tax deduction at source
88 (c) 0 0 0
certificates (As per ANNEXURE-C).

89 (d)  Any other (please specify)N.A. 0 0 0

90 vii) Total credits [(a) to (d) above)] available 695012 695012 0

Add/Less:- Any
91 viii) N.A. 0 0 0
other(please specify)

92 ix) Total amount payable/refundable 0 0 0

93 x) Less: Total Amount of Tax Deferred 0 0 0
Less : Refund adjusted for payment of tax under
94 xi) 0 0 0
the Central Sales Tax Act, 1956
Less: Excess Credit carried forword to
95 xii) 0 0 0
subsequent tax period
96 xiii) Less : Refund already granted to dealer 0 0
97 Balance Tax Payable/ Refundable 0 0 0
98 (i) Add : Interest u/s 30(2) 3161 #NAME? #NAME?
99 (ii)   Add : Interest u/s 30 (4) 0 0 0
100 xiv) Total Amount Payable/ Refundable. 3161 #NAME? #NAME?
Differential tax liability for non-production of
101 xv) 0 0
declaration/ certificate as per Annexure-H.
102 TABLE-3
103 UNDER CENTRAL SALES TAX ACT, 1956
Amount as
Amount as per
104 Sr. No. Particulars determined after Difference (Rs.)
returns (Rs.)
audit (Rs.)
105 i) Gross Turn-Over of Sales (as per Sch. VI) 18069994 18069994 0
106 ii) Less:- Total Deductions available 18069994 18069994 0
107 iii) Balance Net Turn-over liable for Tax 0 0 0
CST leviable under the Central Sales Tax Act,
108 iv) 1956 subject to production of declarations 0 0 0
listed in Anne re I
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109 v) (a) Less: Amount of Tax Deferred 0 0 0

Amount of tax paid under the CST Act
110 (b) 0 0 0
ANNEXURE-B (including interest and RAO)
111 (c) MVAT refund adjusted (if any) 0 0 0

Add/Less : Any other

112 vi) N.A. 0 0 0
(Please specify)

113 vii) Balance of tax payable/ Refundable) 0 0 0

Add: Interest U/s 9(2) read with Section 30(2) of
114 viii)(a) 0 #NAME? #NAME?
MVAT Act.
Add: Interest U/s 9(2) read with Section 30 (4) of
115 (b)  0 0 0
MVAT Act.
116 ix) Total Dues Payable /Refundable 0 #NAME? #NAME?
117 x) Excess Central Sales Tax Collection 0 0 0
Differential CST liability for want of declaration
118 xi) 0 0
as worked out in Annexure-I.
119 TABLE-4
120 CUMULATIVE QUANTUM OF BENEFITS AVAILED
Amount as
Amount as per
121 Sr. No. Particulars determined after Difference (Rs.)
returns (Rs.)
audit (Rs.)

122 i) Under the Maharashtra Value Added Tax Act, 0 0 0

2002
123 ii) Under the Central Sales Tax Act, 1956 0 0 0
124 TOTAL 0 0 0
125 TABLE-5
126 Classification of additional Dues with calculation of Tax and interest thereon
127 Additional Dues
Sr. No. Reasons for Additional Dues (Tax)
128 VAT (Rs) CST (Rs)
129 1 Difference in Taxable Turn-over 0 0
130 2 Disallowance of Branch/Consignment 0 0
T f
Disallowance of Inter-state sales or sales under
131 3 0 0
section 6 (2) of CST Act.
132 4 Disallowance of High-seas Sales 0 0
Additional Tax liability on account of Non-
133 5 0 0
production of Declarations and Certificates.
134 6 Computation of Tax at Wrong rate 0 0
135 7 Excess claim of Set-off or Refund. 0 0
136 8 Disallowance of other Non-admissible claims. (Please Specify)

137 (a)  NIL 0 0

138 (b)  NIL 0 0

139 9 TOTAL DUES PAYABLE 0 0

Amount of interest payable (To be calculated
140 10 3161 0
from due date to the date of Audit)

141 11 TOTAL AMOUNT PAYABLE 3161 0

142 5. Qualifications or remarks having impact on the tax liability :-

143 (a)  NIL

144 (b)  NIL

145 (c)  NIL

146 (d)  NIL

147 (e) NIL

148 6. Dealer has been recommended to:-

149 Sr. No. Particulars MVAT (Rs.) CST (Rs.)

150 i) Pay additional tax liability of Rs. 0 0

151 ii) Pay back excess refund received of Rs. 0 0
152 iii) Claim additional refund of Rs. 0 0
153 iv) Reduce the claim of refund of Rs. 0 0
154 v) Reduce tax liability of Rs. 0 0
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155 vi) Revise closing balance of CQB of Rs. 0 0

156 vii) Pay interest under-section 30(2) of Rs. 3161 0
157 viii) Pay interest under-section 30(4) of Rs. 0 0
Date of signing the
Signature of Chartered
158 Audit Report in 27/12/10
Accountant / Cost Accountant
form 704
159 Name of the Auditor CA. RAMAKANT D. TRIVEDI

160 Membership Number 39531

161 Name of the Auditing Firm N.A.

162 Registration Number of the N.A.
Auditing Firm

163 Address of the Auditor 428-KALBADEVI ROAD, 304-ABHAY HOUSE, KALBADEVI, MUMBAI-400002.

164 Email Id of the Auditor rdtrivedi_2005@hotmail.com

Mobile and LandlineTelephone No

165 9322287578 02222061004
s of Auditor
166 Enclosures:
167 1) Statutory Audit Report and its Annexures NO
168 2) Tax Audit Report under the Income Tax Act, 1961 YES
169 3) Balance Sheet and Profit & Loss Account /Income and Expenditure Account. YES

In case dealer is having multi-state activities the Trial Balance for the business
170 4) NO
activities in Maharashtra.
171
172
173 V a lida te a n d G e n e r a te

174
175
176