MVAT Audit

The implementation of State level Value Added Tax System (VAT) in 21 states of our country effective from 1st April 2005 is seen as a major change in the Commodity Taxation System. Some have described this event as the most important and radical change in the taxation system of India in the post independence era.

 

The concept of vat audit is popular even in foreign countries where VAT is in practice since long in the field of indirect taxation. In countries like France and Korea, vat audit by independent professionals has proved to be an effective tool to check the evasion of tax, which was mostly done by producing fake invoices.

 

Maharashtra is the leading industrial state of our country. Section 61 (1) of the Maharashtra Value Added Tax (Levy and Amendment) Act, 2005 prescribes compulsory audit for the dealers having sales or purchases exceeding Rs. 40 Lakhs to get their accounts audited by a Chartered Accountant.

 

The objective of such provision is to get the correctness and completeness of the returns filed by the dealer certified from a Chartered Accountant who is a member of a recognized profession in full time practice and subject to disciplinary jurisdiction of ICAI and The Chartered Accountant Act, 1949.

 

We see to it that the audit report serves the purpose of computing correct tax liability of the dealer and it should be accepted as a virtual assessment order under the MVAT Act.

WANDREKAR & COMPANY

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