wirc 8.1.2011 amendment to annexures A to K 8-1.pdf · MVAT AUDIT Amendments to ... Activity Code: Minimum 5 digits activity code instead of 4 digits. IV) IV) Schedule s Schedule

MVAT AUDIT MVAT AUDIT

Amendments to Amendments to AnnexuresAnnexures

A to K A to K –– Form 704Form 704

Organised by Organised by

ICAI OF WIRC ICAI OF WIRC

Presentation by Presentation by

CA RAJAT B. TALATI CA RAJAT B. TALATI

[email protected]@talatico.com

ON 8.1.2011ON 8.1.2011

Changes in new MVAT Audit Changes in new MVAT Audit

Report in form 704Report in form 704

��Whether this new VAT Audit Report in Whether this new VAT Audit Report in

Form 704 has been notified by the Form 704 has been notified by the

Commissioner of Sales Tax? Commissioner of Sales Tax?

�� Updated on website on 3.11.10Updated on website on 3.11.10

�� Notified on 20.11.10Notified on 20.11.10

�� what is the implication for intervening period? what is the implication for intervening period?

Refer Refer -- Rule 17A. Rule 17A.

CA Rajat B. Talati CA Rajat B. Talati -- MumbaiMumbai 22

Changes @ a glanceChanges @ a glance

�� ADDITIONS IN FORM 704 ADDITIONS IN FORM 704 --�� LETTER OF SUBMISSIONLETTER OF SUBMISSION

�� ANNEXURE GANNEXURE G

�� ANNEXURE JANNEXURE J--55

�� ANNEXURE JANNEXURE J--66

�� MODIFICATIONS IN FORM 704 MODIFICATIONS IN FORM 704 --�� IN PART IIN PART I�� IN PART IIN PART I

�� IN PART IIIN PART II

�� IN SCHEDULES I TO VIN SCHEDULES I TO V

�� ANNEXURE A TO DANNEXURE A TO D

�� IN ANNEXURE EIN ANNEXURE E

�� IN ANNEXURE FIN ANNEXURE F

�� IN ANNEXURE JIN ANNEXURE J--1, J1, J--2, J2, J--3 AND J3 AND J--44

�� NO MODIFICATION IN SCHEDULE VI AND ANNX. KNO MODIFICATION IN SCHEDULE VI AND ANNX. K

�� TIN & PERIOD GETS DISPLAYED AUTOMATICALLY ON ALL TIN & PERIOD GETS DISPLAYED AUTOMATICALLY ON ALL THE PARTS OF AUDIT REPORT. THE PARTS OF AUDIT REPORT.


Letter of submissionLetter of submission

I I New insertionNew insertion

�� Mainly Dealer’s Acceptance/Dissenting views Mainly Dealer’s Acceptance/Dissenting views -- specified specified 8 Categories 8 Categories -- with reasonswith reasons

�� to be filed physically only and it doesn’t get uploadedto be filed physically only and it doesn’t get uploaded�� If accepted by dealer If accepted by dealer –– When advised payment When advised payment -- make the make the payment immediatelypayment immediatelypayment immediatelypayment immediately

�� If not acceptedIf not accepted-- give the reason and depending upon the facts give the reason and depending upon the facts and circumstances of the case, action would be taken and circumstances of the case, action would be taken

�� Apparently, VAT Audit report should be uploaded by Apparently, VAT Audit report should be uploaded by dealer only. Still whether VAT Auditor can upload the dealer only. Still whether VAT Auditor can upload the same on behalf of Dealer?same on behalf of Dealer?


Changes in Part Changes in Part --11

II) II) PART IPART I

�� The version has been upgraded The version has been upgraded -- 1.2.1 is 1.2.1 is

provided in place of 1.2.0 Version provided in place of 1.2.0 Version

�� following changes made following changes made �� following changes made following changes made

�� Sr. Nos. 2(B)(a) & (b)( Row Nos. 37 to 44)Sr. Nos. 2(B)(a) & (b)( Row Nos. 37 to 44)

•• Schedule and Annexure as applicable to be ticked Schedule and Annexure as applicable to be ticked

�� Read it in totality and not in isolationRead it in totality and not in isolation


Changes in Part Changes in Part --1 1 (cont..)(cont..)

�� Table No. 2Table No. 2•• Row No. 95 inserted Row No. 95 inserted –– Excess credit c/f to next tax period Excess credit c/f to next tax period No change made in Table 3 i.e. Refund under CST not to No change made in Table 3 i.e. Refund under CST not to c/f? What it implies?c/f? What it implies?

�� Table No.5 Table No.5 •• Heading of table changedHeading of table changed•• Heading of table changedHeading of table changed

•• If change in refund If change in refund –– how to report?how to report?

�� Additional details regarding Registration number of Additional details regarding Registration number of Auditor’s firm has to be given. (Prop. as well as Auditor’s firm has to be given. (Prop. as well as Partnership Firm) Partnership Firm)

�� Issues Issues •• Periodicity of Returns Periodicity of Returns

•• Filing of TDS Return in 405Filing of TDS Return in 405


Changes in Part 2Changes in Part 2

III) III) Some modificationsSome modifications

�� Re numbering and Re alignmentRe numbering and Re alignment

�� Land line Number of the dealer also asked forLand line Number of the dealer also asked for

�� Activity Code: Minimum 5 digits activity code Activity Code: Minimum 5 digits activity code instead of 4 digits.instead of 4 digits.instead of 4 digits.instead of 4 digits.

IV) IV) Schedule s Schedule s -- I to VI to V

�� More Rows added for providing Tax Rate wise More Rows added for providing Tax Rate wise break upbreak up

�� Row provided for adjustment of VAT Refund to Row provided for adjustment of VAT Refund to next Tax periodnext Tax period


Changes in Annexure A to J Changes in Annexure A to J ––

General observationsGeneral observations

V) V) All Annexure modified All Annexure modified

All Annexure have to be filled in All Annexure have to be filled in descending order (value wise)?descending order (value wise)?

�� In case of Annexure J In case of Annexure J –– 1 to J 1 to J --4, if 4, if �� In case of Annexure J In case of Annexure J –– 1 to J 1 to J --4, if 4, if incorrect TIN no. entered incorrect TIN no. entered -- immediately immediately disclose the incorrect TIN in Red disclose the incorrect TIN in Red


Changes in Changes in AnnxAnnx A & BA & B

Annexure are modifiedAnnexure are modified

�� Column pertaining to date of filing of returns Column pertaining to date of filing of returns

removedremoved

�� Interest on late payment of tax auto calculatedInterest on late payment of tax auto calculated

Due date of payment Due date of payment -- in case last day being bank in case last day being bank �� Due date of payment Due date of payment -- in case last day being bank in case last day being bank

holiday?holiday?

�� ChallanChallan III EIII E-- doesn’t get uploadeddoesn’t get uploaded


Changes in Changes in AnnxAnnx EE

�� Section 1 Section 1 –– Quantity Quantity -- in case of petroleum products in liters in case of petroleum products in liters

for Motor Spirit and not for Petroleum product. for Motor Spirit and not for Petroleum product.

�� Section 2 Section 2 –– Description of Rule 54 (a) to (k) now providedDescription of Rule 54 (a) to (k) now provided

�� Section 4 Section 4 –– Description of Rule 53 now provided (Sub clause wise Description of Rule 53 now provided (Sub clause wise set off calculation to be submitted)set off calculation to be submitted)

�� Section 6 Section 6 –– Amount of Total SetAmount of Total Set--off Availableoff Available�� Section 6 Section 6 –– Amount of Total SetAmount of Total Set--off Availableoff Available•• Gross input TaxGross input Tax

•• Set Off (ITC) Not Admissible (impact of 0 Value)Set Off (ITC) Not Admissible (impact of 0 Value)

•• Reduction in Setoff (ITC) Reduction in Setoff (ITC)

•• Balance available Setoff (ITC).Balance available Setoff (ITC).

Auditor should put some amount, may be 0, against no setoff Auditor should put some amount, may be 0, against no setoff available in Rule 54.available in Rule 54.


Changes in Changes in AnnxAnnx FF

�� New Ratio? AddedNew Ratio? Added -- Out of Maharashtra Purchases which are Out of Maharashtra Purchases which are capitalizedcapitalized

it is not a Ratio and only information asked forit is not a Ratio and only information asked for

�� One ColumnOne Column-- deleted deleted -- “Method of computation & “Method of computation & Observations, if any”Observations, if any”

�� One Ratio is Changed One Ratio is Changed -- Ratio of interstate stock transfer to Ratio of interstate stock transfer to Net Local Sales has been asked in place of ratio of Net local Net Local Sales has been asked in place of ratio of Net local Net Local Sales has been asked in place of ratio of Net local Net Local Sales has been asked in place of ratio of Net local sales to intersales to inter-- state stock transferstate stock transfer..


Changes in Changes in AnnxAnnx F F (cont..)(cont..)

�� New Information asked forNew Information asked for

�� In all, 15 types of new information asked for In all, 15 types of new information asked for •• opening and closing stock ( Sr. Nos. 1 to 10)opening and closing stock ( Sr. Nos. 1 to 10)

�� RM, PM, WIP, FG, Stores & sparesRM, PM, WIP, FG, Stores & spares

•• Gross amount of sale of Fixed Assets (Sr. No. 11)Gross amount of sale of Fixed Assets (Sr. No. 11)•• Gross amount of sale of Fixed Assets (Sr. No. 11)Gross amount of sale of Fixed Assets (Sr. No. 11)

•• Gross Receipts as defined in MVAT Rule 53(6) (Sr. No. 12)Gross Receipts as defined in MVAT Rule 53(6) (Sr. No. 12)

•• Turnover of Sales as per Profit & Loss (Sr. No. 13)Turnover of Sales as per Profit & Loss (Sr. No. 13)

•• Turnover of Purchases as per Profit & Loss (Sr. No.14)Turnover of Purchases as per Profit & Loss (Sr. No.14)

•• Total of Non sales income. (Sr. No. 15)Total of Non sales income. (Sr. No. 15)


Changes in Changes in AnnxAnnx F F (cont..)(cont..)

IssuesIssues

1)1) Non Sales income (Ratio no. 3)Non Sales income (Ratio no. 3)

�� NonNon--sales receipt V. Nonsales receipt V. Non--sale income, sale income,

�� Gross Receipt, Gross Turnover of sales.( Gross Gross Receipt, Gross Turnover of sales.( Gross Receipt as per Rule 53(6) and other wise. Receipt as per Rule 53(6) and other wise. Receipt as per Rule 53(6) and other wise. Receipt as per Rule 53(6) and other wise.

�� Turnover of sales and purchases as per P/L a/cs. Turnover of sales and purchases as per P/L a/cs.

(What treatment to be given to excise amount, (What treatment to be given to excise amount, tax amount, scrap sales amount etc.)tax amount, scrap sales amount etc.)

2) What treatment to be given to income received 2) What treatment to be given to income received on account of interest, Subsidy, branch transfer on account of interest, Subsidy, branch transfer etc.? etc.?


Changes in Changes in AnnxAnnx GG

This annexure is replacement cum newly This annexure is replacement cum newly inserted / of old annexureinserted / of old annexure

�� Information Information --declaration forms or declaration forms or certificate received.certificate received.•• Form C, F, H etc.Form C, F, H etc.

�� Total 999 rows are provided. Details of Total 999 rows are provided. Details of forms are to be mentioned in descending forms are to be mentioned in descending order (value wise)? order (value wise)?


Changes in Changes in AnnxAnnx G G (cont..)(cont..)

�� Issues Issues �� How details are to be provided How details are to be provided –– Declaration wise, Declaration wise, Invoice wise or any other way?Invoice wise or any other way?

�� What is the impact on differential amount between What is the impact on differential amount between gross sales amount and amount for which declaration gross sales amount and amount for which declaration has been received?has been received?has been received?has been received?

�� Gross amount as per Invoice Gross amount as per Invoice –– Which are the Which are the components to be included e.g. CST, freight charges, components to be included e.g. CST, freight charges, installation etc? Impact of Goods Return.installation etc? Impact of Goods Return.

�� Note Note –– Very tedious job to find out the exact value of Very tedious job to find out the exact value of sales invoices less goods returns and ultimately to sales invoices less goods returns and ultimately to reconcile with GTO of sales in Schedule VI. Idea is to reconcile with GTO of sales in Schedule VI. Idea is to reconcile with SCH. VI. reconcile with SCH. VI.


Changes in Changes in AnnxAnnx J J --11

Customer Wise VAT Sales DetailsCustomer Wise VAT Sales Details ––

new rows addednew rows added. . �� Row No.1000 replaced with “Remaining local transaction total Row No.1000 replaced with “Remaining local transaction total

where tax is collected separately not covered above”where tax is collected separately not covered above”

�� Row No. 1001 added for “Local Sales to non TIN holders” Row No. 1001 added for “Local Sales to non TIN holders”

�� Row No.1002 is added for “Gross local sales where tax is not Row No.1002 is added for “Gross local sales where tax is not collected”. collected”. collected”. collected”.

�� Terms “Net Taxable amount”, “Gross Amount” & Other Local Terms “Net Taxable amount”, “Gross Amount” & Other Local Taxable Sales” have been deleted.Taxable Sales” have been deleted.

�� How to reportHow to report––•• Gross sales Gross sales visvis ––aa-- visvis Gross sales and net taxable sales. Gross sales and net taxable sales.

•• Various types of sales made by various dealers e.g. PSI Sales, Various types of sales made by various dealers e.g. PSI Sales, Composition Dealers’ sales, Impact of Rule 57(1) etc. Composition Dealers’ sales, Impact of Rule 57(1) etc.



Supplier wise VAT purchasesSupplier wise VAT purchases

new rows are added. new rows are added. �� Row No.1000 replaced with “Remaining local transaction Row No.1000 replaced with “Remaining local transaction

total where tax is paid separately not covered above” total where tax is paid separately not covered above”

�� Row No.1001 added for “Local Purchase from non TIN Row No.1001 added for “Local Purchase from non TIN �� Row No.1001 added for “Local Purchase from non TIN Row No.1001 added for “Local Purchase from non TIN

holders” holders”

�� Row No.1002 added for “Gross local Purchases where tax Row No.1002 added for “Gross local Purchases where tax

is not paid separately’’is not paid separately’’

�� Note is provided and defined the terms “ Net taxable Note is provided and defined the terms “ Net taxable

amount” and “Gross amount”amount” and “Gross amount”



Customer wise Debit Note or Credit NoteCustomer wise Debit Note or Credit Note

following new rows are added. following new rows are added. �� Row No. 500 replaced with “Remaining local transaction Row No. 500 replaced with “Remaining local transaction total of Debit/ Credit Notes where tax is collected separately total of Debit/ Credit Notes where tax is collected separately (not covered above)”(not covered above)”

�� Row No. 501 inserted for “Debit/ Credit Note in case of local Row No. 501 inserted for “Debit/ Credit Note in case of local �� Row No. 501 inserted for “Debit/ Credit Note in case of local Row No. 501 inserted for “Debit/ Credit Note in case of local sale to Non TIN holders”sale to Non TIN holders”

�� Row No.502 inserted for “Gross local sales of Debit/ Credit Row No.502 inserted for “Gross local sales of Debit/ Credit notes where tax is not collected separately”notes where tax is not collected separately”



Supplier wise Debit Notes or Credit NotesSupplier wise Debit Notes or Credit Notes

new rows are added. new rows are added. �� Row No. 500 replaced with “remaining local Row No. 500 replaced with “remaining local transactions total of Debit/ Credit Notes where tax transactions total of Debit/ Credit Notes where tax is collected separately by supplier (not covered is collected separately by supplier (not covered above)”above)”above)”above)”

�� Row No. 501 inserted for “Debit/ Credit Note in Row No. 501 inserted for “Debit/ Credit Note in case of local purchases to Non TIN holders”case of local purchases to Non TIN holders”

�� Row No. 502 inserted for “Gross local purchase of Row No. 502 inserted for “Gross local purchase of Debit/ Credit notes where tax is not collected Debit/ Credit notes where tax is not collected separately”separately”


New New AnnxAnnx J J --55

Customer wise transactions of Direct Export Customer wise transactions of Direct Export

and High Seas Sales under CST Act, 1956.and High Seas Sales under CST Act, 1956.

details called for details called for --�� Customer NameCustomer Name

TIN of Customer (if Any)TIN of Customer (if Any)�� TIN of Customer (if Any)TIN of Customer (if Any)

�� Transaction type, Export or High Seas SalesTransaction type, Export or High Seas Sales

�� Gross TotalGross Total

�� Major CommodityMajor Commodity


New New AnnxAnnx J J --66

Supplier wise Transactions under CST Act Supplier wise Transactions under CST Act 1956.1956.

details called fordetails called for�� Customer NameCustomer Name

�� TIN of Customer (if any)TIN of Customer (if any)�� TIN of Customer (if any)TIN of Customer (if any)

�� Transaction type, OMS purchase, Direct Import, Transaction type, OMS purchase, Direct Import, High Seas purchase, Purchase U/s. 6(2) & High Seas purchase, Purchase U/s. 6(2) & Branch transferBranch transfer

�� Any other cost of purchaseAny other cost of purchase

�� Gross TotalGross Total


Changes in InstructionsChanges in Instructions

�� Following new instructions added Following new instructions added ––

�� Instructions Nos. 19 Instructions Nos. 19 –– AnnxAnnx --GG

�� Instructions Nos. 24 Instructions Nos. 24 –– AnnxAnnx J J --55

�� Instructions Nos. 26Instructions Nos. 26-- AnnxAnnx J J --66

�� Instructions Nos. 39 Instructions Nos. 39 -- If wrong TIN If wrong TIN -- Red and BoldRed and Bold

�� Validation buttonsValidation buttons

In all parts, Schedules & Annexure ‘Press for Validation’ key is In all parts, Schedules & Annexure ‘Press for Validation’ key is kept at the bottom rather than at top.kept at the bottom rather than at top.



Documents

wirc 8.1.2011 amendment to annexures A to K 8-1.pdf · MVAT AUDIT Amendments to ... Activity Code: Minimum 5 digits activity code instead of 4 digits. IV) IV) Schedule s Schedule