abhishreshthaa
Abhijeet S
Accounts to be audited in certain cases
Who is required to have the accounts audited and when?
• Any dealer, liable to pay tax, if this turnover of sales or purchases exceeds the specified limit [say, Rs. 25 lakhs or Rs. 40 lakhs) in any year; and
• Any non – resident dealer.
What are the obligations of a Dealer, for the purpose?
• To get the accounts audited by a Chartered Accountant within the prescribed time; and
• Furnish within that period the report of such audit in the prescribed form duly signed and verified by the Chartered Accountant and setting forth such particulars and certificates as may be prescribed.
What are the consequences for non – compliance?
If the dealer fails to furnish a copy of such report in time, he may be liable to a penalty equal to 1/10th % of the total sales / purchases or any other specified amount.
Declaration of stock of goods held on the appointed day
Why declaration of stock of gods on the appointed day is required?
The dealer may be eligible to claim credit or set – off, in respect of tax paid on stock of goods held by him on the appointed day. Therefore, Tax Department may seek the information.
Accordingly, compliance with the requirement, to claim the credit, is absolutely essential.
What are the requirements?
The Commissioner may require any class of registered dealers to declare details of the stock held by them on the day earlier to the appointed day in such manner and with such particulars, in terms of a notification issued in that behalf.
Who is required to have the accounts audited and when?
• Any dealer, liable to pay tax, if this turnover of sales or purchases exceeds the specified limit [say, Rs. 25 lakhs or Rs. 40 lakhs) in any year; and
• Any non – resident dealer.
What are the obligations of a Dealer, for the purpose?
• To get the accounts audited by a Chartered Accountant within the prescribed time; and
• Furnish within that period the report of such audit in the prescribed form duly signed and verified by the Chartered Accountant and setting forth such particulars and certificates as may be prescribed.
What are the consequences for non – compliance?
If the dealer fails to furnish a copy of such report in time, he may be liable to a penalty equal to 1/10th % of the total sales / purchases or any other specified amount.
Declaration of stock of goods held on the appointed day
Why declaration of stock of gods on the appointed day is required?
The dealer may be eligible to claim credit or set – off, in respect of tax paid on stock of goods held by him on the appointed day. Therefore, Tax Department may seek the information.
Accordingly, compliance with the requirement, to claim the credit, is absolutely essential.
What are the requirements?
The Commissioner may require any class of registered dealers to declare details of the stock held by them on the day earlier to the appointed day in such manner and with such particulars, in terms of a notification issued in that behalf.