JULY-2011 VAT RETURN PREPARATION TIPS
1) July 11 return: Excel Sheet - Annexure I to prepare from 01.07.11 to 11.07.11 at 4%/12.5% and from 12.07.11 to 31.07.11 at 5%/14.5% respectively. Similarly to prepare Annexure II Sales also. All the purchases (Local purchase, Interstate purchase, Import purchase, 0.5% Purchase, Exempted purchase should be shown in Annexure I, and all the sales i.e., Local Sales, Interstate sales, exempted sales should be shown in Annexure II )
2) Reverse Credit workings u/s 19(4): For the first period ¾ and 3/12.5% and for the Second period 3/5 and 3/14.5% separately given.
3) Form K – 0.5% - No need to give separate figures. Because for all the sales 0.5% to pay.
4) Fabrics – Initially tax proposed at 5% on 12.07.11 and later withdrawn on 21.07.11 but w.e.f. 12.07.11. Hence don’t collect the tax. If tax collected please pay it. In the purchase bill if there is a tax portion, DON’T take ITC, because it is exempted commodity. The tax collection will be treated as Penalty u/s 40 by the CTO. During the 10 days period, if there is any ITC on Yarn purchase, it cannot be set off in the output tax of fabrics. Please be careful.
5) Laboratory equipments for teaching purposes – still the rate of tax is 4% only. Because no GO for 5%.
6) Vegetable Oil up to Rs 5 Cr tax exempt. For example in a Maligai shop, if the oil turnover has not exceeded Rs 5 Cr then no liability at all.
7) In a leading textile Mill at Udumalpet, for 2009-10, reverse credit not done, and AO issued notice for Rs 7.5 lakhs.
8) Sec 6 – Other than Civil contracts option rate is only 4% and has not increased to 5%, please note.
COMPILED BY: K JAYAKUMAR, STP, Coimbatore
Ph: 0422-2493485/98422 72129
RANDOM SELECTION OF ASSESSES FOR SCRUTINY
Random selection: So many dealers have not received the Original Sec 22 Self assessment order. But random selected. For the Assessment year 2006-07 and 2007-08, random selected. Hence for those cases, please get the Self assessment order first, and then produce the accounts. Produce the following:
a) As in TNGST, please prepare the Trading Account, Audited P/L
b) Concessional certificates if any (for manufacturer Rule 6(3)(b) Certificate, SEZ certificate, 100% EOU Certificate, Asset purchase intimation etc) to produce.
c) Please see annexure I is fully supported by the returns. If not produce the copy of it, because AG people will ask for it later.
d) In the purchase list please see the TIN number available for all the purchases, because ITC credit is taken by us. It is Government money
e) Check, turnover as per returns and as per accounts tallies. If not prepare the Revised returns and pay the tax along with Sec 42(3) Interest at 1.25% before Assessment.
f) Please check the Reverse Credit workings. (For Exempted Sales, Sec 19(4) workings etc)
g) Please see the reverse Credit workings for weight difference in Cotton waste (In the Invoice 100 Kgs mentioned but received only 90 Kgs means, reverse credit should be given for the corresponding purchase value also)
h) Because for wrong credit of ITC Sec 27 (4) would be attracted. Wrong availment of ITC, penalty would be 50% for first detection and 100% for subsequent detection by AO
i) Please reverse the ITC taken for non productive assets like, Car, AC etc., before going to CTO
j) Affix seal in the Cash book, Ledger, Sale
k) Automobile dealers, please check the Entry tax paid and set off in the VAT assessment
l) Please see the reverse credit workings for the whole year turnover. If there is any short workings, please pay the amount before assessment
m) PLEASE GET REVISIED ORDER FROM THE AO
COMPILED BY: K JAYAKUMAR, STP, Coimbatore
Ph: 0422-2493485/98422 72129
