THE KERALA VALUE ADDED TAX CIRCULAR, 2005 - CIRCULARS & CLARIFICATONS
-

Body CIRCULAR No. 6 /2007., No.C1-520/06/CT, Dated 8th February, 2007

Officer of the Commissioner

Department of Commercial taxes,

Thiruvananthapuram.

Dated 8-2-2007

Sub:- KVAT Act, 2003- Audit Certificate under section 42 - Forms 13 and 13A- further modification - instructions - issued-reg

Ref:- Circular No 45/2006 dated 29th November, 2006

As per circular read above, instructions were issued with regard to filing of Audit Certificate and a modified Form 13 & 13A was circulated for filing Audit Certificate as required under section 42 of the said Act. Subsequently various chapters of ICAI had pointed out certain issues in the modified form. Their suggestions have been examined and those found acceptable have been incorporated in the Forms as appended in exercise of the powers under sub rule (2) of Rule 100 of KVAT Rules, 2005.

The new Forms shall be put into use with immediate effect. However it is clarified that in case any certificates have already been filed in the pre-revised Forms by the prescribed dates, such certificates may be accepted and no revision shall be insisted upon.

The date of filing of audit certificates for the year 2005-06 under section 42 of the Act stands extended up to 28-2-2007.

Where any dealer detects any omission or mistake in the annual return submitted by him with reference to the audited figures, he shall file revised annual return rectifying the mistake or omission along with the audit certificate. The parameters laid down in Sub rule (4A) of Rule 22 of Kerala Value Added Tax rules, 2005 shall apply mutatis mutandis to such revision.

All assessing authorities shall ensure that the dealers comply with the statutory requirement within the specified date.

COMMISSIONER

THE KERALA VALUE ADDED TAX RULES, 2005

FORM NO. 13

AUDIT REPORT

(See Rule 60)

Audit Report under section 42 of the Kerala Value Added Tax Act, 2003 in a case where the Accounts of the Business of a Dealer have been audited under any other law.

I/We have to report that statutory audit of .................. .................................... (Name and address of the dealer, Registration Certificate No................................................) was conducted by me /us/M/s ............................................................ ............ in pursuance of the provisions of the.................. .................... Act and I/We annex hereto a copy of my /our/ their audit report dated ..........................along with a copy each of the:

a. audited Profit and Loss Account for the year ended on ..................

b. audited Balance Sheet as at ..............

c. the documents declared by the relevant Act to be a part of, or annexed to, the Profit and Loss Account and Balance Sheet.

I/We have obtained all information and explanations which were necessary for the purpose of the audit under the KVAT Act 2003 and examined the relevant records and information in relation to the particulars furnished by the dealer in respect of the annual return and statement of particulars in Form No.13A annexed.

In my/our opinion, proper books of account as required by law including Kerala Value Added Tax Act 2003 have been kept at the principal place of business and branches, if any, in the State of Kerala so far as appears from our examination of the books.

I/We have audited the claim of input tax credit, output tax, rebates, reverse tax and refunds, with reference to the invoices, vouchers and books maintained by the Dealer.

I /We have conducted my/our audit in accordance with Auditing Standards generally accepted in India. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in Form number 13A. I/We believe that my /our audit provides a reasonable basis for my/our opinion.

In my/ our opinion and to the best of my /our information and according to explanations given to me/us, the aforesaid claims put forth under the provisions of Kerala Value Added Tax Act, 2003, the particulars given in Form number 13A and the annexure thereto are true and correct , subject to my/our comments / observations annexed hereto .

Place:	Signature

Date :	CHARTERED ACCOUNTANT/
	COST ACCOUNTANT

	with Membership Number

Note :-

1. Delete whichever is not applicable

2. This report shall be signed by a Chartered Accountant as defined under the Chartered Accountants Act, 1949 (Central Act 38 of 1949) or a Cost Accountant as defined under the Cost and works Accountants Act, 1959. (Central Act 23 of 1959)

THE KERALA VALUE ADDED TAX RULES, 2005

FORM NO. 13

AUDIT REPORT

(See Rule 60)

Audit Report under section 42 of the Kerala Value Added Tax Act, 2003 in a case where the Accounts of the Business of a Dealer have not been audited under any other law.

I/We have examined the Balance Sheet as at 31st March .................. and the Profit and Loss Account for the year ended on that date, attached herewith, of M/s..................................................................................... ....................................................................................................................... ......... (Name and address of the Dealer with Registration Certificate number.........................................) I/We have conducted my/our audit in accordance with Auditing Standards generally accepted in India. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. I/We believe that my/our audit provides a reasonable basis for my/our opinion

We report that,-

(i) the Balance Sheet and Profit and Loss Account are in agreement with the books of account maintained at the principal place of business and branches, if any, in the State of Kerala.

(ii) in my/our opinion, proper books of account as prescribed by the Kerala Value Added Tax Act, 2003 have been kept by the Dealer so far as appears from my/our examination of the books.

(iii) I/We have obtained all the information and explanations which, to the best of my/our knowledge and belief, were necessary for the purposes of the audit under the KVAT Act 2003

(iv) In my/our opinion and to the best of my/our information and according to the explanations given to me/us, the said accounts, read with notes thereon, if any, give a true and fair view;

(a) in the case of the Balance Sheet, of the state of the affairs of the Dealer as at 31st March,............ and

(b) in the case of the Profit and Loss Account of the profit/loss of the Dealer for the year ended on that date.

I/We have audited the claim of input tax credit, output tax, rebates, reverse tax and refunds with reference to the invoices, vouchers and books maintained by the Dealer. I /We have conducted my/our audit in accordance with Auditing Standards generally accepted in India. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in Form number 13A. I/We believe that my /our audit provides a reasonable basis for my/ our opinion.

In my/ our opinion and to the best of my /our information and according to explanations given to me/us, the aforesaid claims put forth under the provisions of Kerala Value Added Tax Act, 2003 ,the particulars given in Form number 13A and the annexure thereto are true and correct , subject to my/our comments / observations annexed hereto.

Place:	Signature

Date :	CHARTERED ACCOUNTANT/
	COST ACCOUNTANT

	with Membership Number

Notes:-

1 Delete whichever is not applicable

2 This report shall be signed by a Chartered Accountant as defined under the Chartered Accountants Act, 1949 (Central Act 38 of 1949) or a Cost Accountant as defined under the Cost and Works Accountants Act, 1959. (Central Act 23 of 1959)

THE KERALA VALUE ADDED TAX RULES, 2005

FORM NO. 13A

(See Rules 60)

The Assessing Authority

........................................

STATEMENT OF PARTICULARS

PART I

GENERAL INFORMATION

1	Name and Address of the dealer with Phone, Fax, E-mail etc. (Principal place of Business)
2	Name and Addresses of Branch(es) and godown(s), if any, in the State of Kerala
3	a. TIN b. PIN c. CST No.
4	Status (Proprietary / Partnership / Company / Others specify)
5	If not proprietary, indicate name and address of partners, Directors etc and their share and interest.
6	Return period (Financial year)
7	List of books of accounts maintained by the dealer
8	List of books of account examined
9	Method of accounting employed
10	Whether there has been any change in the method of accounting employed vis-à-vis the method employed in the immediately preceding year.
11	If yes, details of deviation, in the method of accounting employed in the previous year from accounting standards prescribed and the effect thereof.
12	Method of valuation of closing stock
13	Details of bank Account
	i) Name and Address of Bank
	ii) Account number
14	Give the following particulars of the capital asset converted into stock in trade:-
	a) Description of capital asset
	b) date of acquisition
	c) Cost of acquisition
	d) Amount at which the asset is converted into stock-in-trade during the year
15	Total number of employees
16	List of statutory forms obtained from the Commercial Tax office with serial numbers which were used during the year. (Form Nos. C, E I, E II, F, H, I J & Form 15 and others, if any)
17	Appeals and Revisions under KVAT Act pending as at the year end with address of the authority, date of filing the appeal and period of assessment.
18	Details of penalty / security deposit / compounding fee levied or paid during the year
19	Details of shop inspection conducted - SIR No., date and designation of the Officer who conducted the inspection
20	Details of VAT Audit conducted U/s. 23.
21	Details of registration / renewal fee paid for the financial year
22	Other (Specify)

PART II

FOR MANUFACTURING DEALERS

A - GENERAL PARTICULARS

Name of goods Manufactured	Schedule No./Entry No.	HSN Code of finished goods	Rate of tax

B - MANUFACTURING & TRADING RESULTS

			Amount (Rs.)
A. Opening Stock:
(1). Raw Materials (Direct materials)
(2). Work-in-progress
(3). Consumables (indirect Materials)
(4). Others (Specify)
Total
(5) Cost of goods eligible to claim input tax credit u/s 11(13)
(6) Tax effect
(7) Amount of input tax credit eligible under Rule 12
B. Purchase/Receipt of Goods:
B1. Purchase Intra - State
(a) From VAT registered dealers other than (b) below
(b) Presumptive / Compounding / KGST Dealer
(c) Others
Total
B2. Purchase Inter-State
(a) Goods liable at Entry Tax and Eligible for special rebate
(b) Others
Total
B3. Inter-State Stock Transfer Receipt
From head Office / Branches
Total
B4. Import from Outside the Country
B5. Others (Specify)
Total Purchase (B1+B2+B3+B4+B5)
C Total (A+B)
D. Purchase / Receipt Returns
D1. Purchase / Returns Intra-State
(a) To VAT registered dealers
(b) To Registered dealers other than VAT registered Dealers (Presumptive / Compounding / KGST Dealers)
(c) To Others
Total
D2. Purchase Returns Inter State
(a) Goods liable to entry tax and eligible for special rebate
(b) To Others
Total
D3. Returns Inter-State Stock Transfer Receipts
To Head Office / Branches
Total
D4. Purchases Returns of Import from Outside the Country
D5. Others (Specify)
Total Purchase Returns (D1+D2+D3+D4+D5)
E Total Net Purchase (B-D)
F. Direct Expenses (specify)
Total
G Sub Total [E+F]
H. Closing stock
1. Raw Materials (Direct Materials)
2. Work-In-Progress
3. Consumables (Indirect materials)
4. Others (Specify)
Total
I. Cost of Goods Manufactured during the year [(A+G) - H]
J. Opening Stock of Finished Goods
J1. Finished goods purchased
J2. Branch transfer inwards of finished goods
K. Goods meant for sale during the year [I+J+J1+J2]
L. Closing stock of Finished Goods
M. Sale/Issue of Finished goods
M1. Sales Intra-State
Total
M2. Sales Inter-State
(a) Against C. Form
(b) Others
Total
M3. Inter-State Stock Transfer
To Head Office / Branches
Total
M4. Exports to Outside the country
M5. Deemed Exports Sales
M6. Consignment Stock transfer outward, Others (specify)
Total Sales / Issues (M1+M2+M3+M4+M5+M6)
N. Sales/Issue Returns
N1. Sales Returns - Intra-State
(a) Within time allowed under KVAT
(b) Others
Total
N2 Sales Returns Inter- State
(a) Within the time allowed under CST Act
(b) Others
Total
N3. Return Inter-State Stock Transfers
From Head Office / Branches
Total
N4. Sales return of export to out side the Country
N5. Return of deemed export sales
N6. Other sales returns (specify)
Total Sales / Issue returns (N1+N2+N3+N4+N5+N6)
O. Net Sales (M - N)
Gross profit

PART III

FOR TRADING DEALERS

A - GENERAL PARTICULARS

Name of principal goods dealt with	Schedule No. / Entry No.	HSN Code	Rate of tax
			Rs.
P. Opening Stock:
Q. Purchases/Receipt of Goods
Q1. Purchases Intra-State
(a) From VAT registered dealers
(b) From registered dealers other than (a) above (presumptive / Compounding / KGST dealer)
(c) From persons other than registered Dealers
(d) Intra State stock transfer receipts
Total
Q2. Purchases - Inter-State
(a) Liable to entry tax and eligible for special rebate
(b) Purchase relating to sale in transit
(b) Others
Total
Q3. Inter-State Stock Transfer Receipts
From Head Office / Branches
Q4. Import from Outside the Country
Q5. Others (specify)
Total Purchase (Q1+Q2+Q3+Q4+Q5)
R. Purchase / Receipt Returns
R1. Purchases returns - Intra-State
(a) To VAT registered dealers
(b) To registered dealers other than (a) above (presumptive / Compounding / KGST dealer)
(c) To persons Other than registered Dealers
Sub Total
R2. Purchases Returns - Inter-State
(a) Goods liable to entry tax and eligible for special rebate
(b) Others
Total
R3. Return / Inter-State Stock Transfer Receipts
To Head Office / Branches
Total
R4. Purchase Returns of Goods Imported from Outside the Country
R5. Others (specify)
Total Purchase Returns (R1+R2+R3+R4+R5)
S. Net Purchase / Receipt (Q-R)
T. Direct Expense
Total
U. Total cost of Goods meant for sale [P+S+T]
V. Sale/Issue of Goods
V1.a) Sales Intra-State
(b) Intra-State Stock Transfer
Total
V2. Sales Inter-State
(a) Against C and D Forms
(b) Sales in transit
(c) Others
Total
V3. Inter-State Stock Transfer Outwards
To Head Office / Branches
Total
V4. Export to Outside the Country
V5. Deemed Export Sales
V6. Others (specify)
Total Sales / Issue (V1+V2+V3+V4+V5+V6)
W. Sales/Issue Returns
W1. Sales Returns - Intra-State
(a) Within the time allowed
(b) Others
Total
W2. Sales Returns Inter-State
(a) Within the time allowed under CST Act
(b) Others
Total
W3. Return of Inter-State Stock Transfer Receipts
From Head Office / Branches
Total
W4. Sales Return of Exported Outside the Country
W5. Others (Specify)
Total Sales Returns (W1+W2+W3+W4+W5)
X. Net Sales (V-W)
Y. Closing Stock
Gross Profit

C. CONSIGNMENT SALES

	Value (Rs.)
Opening stock
Goods received
Sales
Tax collected
Tax paid
Closing Stock

PART IV

A. TRANSFER OF RIGHT TO USE GOODS

Sl. No.	Description of goods	Lease rentals received (Rs.)	Rate

B. SALE OF FIXED ASSETS

Sl. No.	Description of assets	Entry No. And Schedule No.	HSN code	Sale value (Rs.)

PART V

WORKS CONTRACT

Contract Receipts : (In the Case of a Contractor)

AA Ongoing Contracts	1	No. of contracts pending execution as on 1^st April (Fully & partially)
	2	Total contract amount involved (as per (1) above)
	3	Total contract amount received upto 31^st March of previous year
	4	Receipts during the year (Contract wise receipts to be annexed)
		Total	Exempted	Taxable Turnover	Tax due


	5	Works Contract Tax paid
AB New Contracts	6	No. of contracts newly entered during the year
	7	Total contract amount (as per (6) above)
	8	Receipts during the year (Contract wise receipts to be annexed)
		Total	Exempted	Taxable Turnover	Tax due

	9	Works Contract Tax paid
AC Total	10	Total number of contracts during the year (1+6)
	11	Total contract amount (2+7)
	12	Total contract receipts during the year (4+8)
	13	Balance cost of Works Contract on going (11-12)
	14	Works Contract tax paid during the year (5+9)
			(i) By TDS
			(ii) Along with returns
	15	Tax paid details			Show as annexure

B. Contract Awarded:

(In the case of an Awarder) *

BA Ongoing Contracts

No. of contracts pending execution as on 1^st April (Fully & partially)

Total contract amount involved (as per (1) above)

Total payments upto 31^st March of previous year

Payments during the year (Contract wise receipts to be annexed)

With TDS

Without TDS

Tax deducted

Works Contract Tax deducted at source

BB New Contracts

No. of contracts newly awarded during the year

Total contract amount (as per (6) above)

Payments during the year (Contract wise receipts to be annexed)

With TDS

Without TDS

Tax deducted

................................

Works Contract Tax deducted at source

BC Total

Total number of contracts awarded during the year (1+6)

Total contract amount (2+7)

Total contract payments during the year (4+8)

With TDS
Without TDS
Total

Balance cost of Works Contract on going (11-12)

Works Contract tax deducted at source during the year (5+9)

Details of remittance to Government

Show as annexure

* Including a Contractor who awards a sub contract.

Note: Annex separate statements containing the details of awarder, nature of work, work order and date, contract amount, contract receipts and tax paid details of individual contracts.

PART VI

A) STATEMENT OF INPUT TAX CREDIT ON CAPITAL GOODS

Sl. No.	Name of the Capital Goods purchased	Schedule No. & Entry No.	Date of Purchase	Purchase Value			Input tax paid	Entry Tax paid	Purchase Tax paid	Input tax credit availed during the year (Rs.)	Balance input tax credit carry forwarded to next year (Rs.)
Sl. No.	Name of the Capital Goods purchased	Schedule No. & Entry No.	Date of Purchase	Local	Inter state	Import	Input tax paid	Entry Tax paid	Purchase Tax paid	Input tax credit availed during the year (Rs.)	Balance input tax credit carry forwarded to next year (Rs.)
1	2	3	4	5	6	7	8	9	10	11	12

Total

B) STATEMENT OF INPUT TAX CREDIT ON CAPITAL GOODS (VALUE BELOW THE LIMITS PRESCRIBED)

Sl. No.	Name of the Capital Goods purchased	Schedule No. & Entry No.	Date of Purchase	Purchase Value			Input tax paid (Rs.)	Entry Tax paid (Rs.)	Purchase Tax paid (Rs.)	Input tax credit availed during the year (Rs.)
Sl. No.	Name of the Capital Goods purchased	Schedule No. & Entry No.	Date of Purchase	Local	Inter state	Import	Input tax paid (Rs.)	Entry Tax paid (Rs.)	Purchase Tax paid (Rs.)	Input tax credit availed during the year (Rs.)
1	2	3	4	5	6	7	8	9	10	11



Total

PART VII

A - FINANCIAL RESULTS

1. Tax Credits
i) VAT paid on local purchase of goods
ii) VAT paid on capital goods
iii) Special Rebate (Specify)
iv) Entry tax paid on capital goods eligible for S/R
v) Input tax on sales return
vi) Other amount eligible for setoff such as ITC on opening stock etc. [specify]
vii) Total [i+ii+iii+iv+v+vi]
viii) excess input tax credit carried forward from Prev. Year if any
Total Amount for setoff (vii + viii)
2. Output Tax
i) Tax due / collected as per Sales invoice
ii) Reverse tax due
iii) Purchase tax due U/s. 6(2)
iv) Input tax on Purchase return
v) Others
vi) Total output tax due [i+ii+iii+iv+v]
vii) Tax payable / creditable
viii) Tax due on Interstate sales
ix) Net tax payable / creditable
6. Details of Refund (if any)
Particulars	Due	Effected	Outstanding
On export u/s 13
On interstate sale/stock transfer U/s.13
On un adjusted excess credit u/s.11
Total

B - Payment details of Taxes

No. & date of Challan / DD / Cheque	Rs.		Name of Bank/Treasury and Location
	KVAT	CST



Total

C - STATEMENT OF OTHER TAXES

Particulars for the year	Amount payable (Rs.)	Amount paid (Rs.)	Balance payable, if any. Rs.
Central Sales Tax
Entry Tax
Purchase Tax
Compounded Tax
Illegal Tax
Registration / Renewal Fees
Security Deposit
Penalty
Settlement Fee
Interest
Others (Specify)
Total

Note : Attach separate statement of month wise payment, amount, date of payment, number of Cheque or DD, name of Bank or Treasury and location, of taxes paid / payable.

DECLARATION

I ................................................... (Name of the authorized signatory) in my capacity as ....................... (designation) of ........................................................................................................ (Name and Address of the dealer) do hereby declare that the particulars given above are true and correct to the best of my / our knowledge, information and belief and all information furnished here are in accordance with our books of accounts and the annual return submitted as per Form number. ...............

Place	Seal	Name
Date		Signature and
		Designations

Notes :- 1. The above statement shall be signed by the person authorised to sign the return under the Value Added Tax Rules, 2005.

2. The above particulars shall be prepared by the dealer and submitted along with Form No. 13 / 13A

Audit report in Form No.13 of the Kerala Value Added Tax Rules, 2005 is annexed.

Place		Signature
Date		CHARTERED ACCOUNTANT/COST ACCOUNTANT
		with Membership Number

NOTES

1. Dealers may suitably modify the manufacturing account giving the above particulars, depending on the nature of the activity.

2. Quantitative particulars of principle items may be given separately in a suitable format.