BIHAR VALUE ADDED TAX Act, 2005 NOTIFICATION
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GOVT. OF BIHAR

COMMERCIAL TAXES DEPARTMENT, BIHAR, PATNA.

Notification Memo No.- TRU (Dirgh. Yo.) 01/2012 /1414 Dated 3rd April, 2012

Section 26(2) of the Bihar Value Added Tax Act, 2005 enjoins upon the Commissioner to select, in the interest of revenue, any registered dealer for detailed audit of his business on the basis of a selection model as may be prepared for such purpose incorporating therein such criteria as may be deemed fit by the Commissioner.

According to Rule 22 of the Bihar Value Added Tax Rules, 2005 such selection of dealers has to be done in respect of any financial year by the 31st of March of the year following the financial year. The number of dealers to be audited every year shall not normally be more than ten percent of the total registered dealers in the State.

In view of the above provisions, the following selection model is prepared for computerised selection of dealers for VAT audit for the financial year 2010-11.:-

1. Computersied selected dealers of the following commodities, who have imported goods on the basis of Form 'C or 'F' from outside the State :- (i) Electrical Goods (ii) Iron & Steel (iii) Telephone (iv) Consumer durables (v) Auto Parts (vi) Electronic Goods (vii) Computer & its Peripherals (viii) Engine & Motors (ix) Bicycle (x) Moulded luggage

2. Computrised selected dealers of all others commodities except those enumerated in SI. No. 1., who have imported goods on the basis of Form 'C from outside the State and paid tax in the following range during 2010-11 :-

SI.	Tax range	Selection criteria No.
1	Rs. 0 - 10000	Every 10th dealers of this range.
2	Rs. 10001 - 100000	Every 10th dealers of this range.
3	Rs. 100001 -500000	Every 10th dealers of this range.
4	Rs. 500001 - 1000000	Every 10th dealers of this range.
5	Rs. 1000001 - 10000000	Every 05th dealers of this ranged
6	More than Rs. 10000000	All dealers of this range.

3. Dealers of Cement, Two-three & four wheelers and Tyre & Tubes, whose gross turnover is more than Rs. 1 Crore in the F.Y. 2010-11 and have :-

(a) Claimed Input Tax Credit.

(b) Carried forward un-adjusted Input Tax Credit to next financial year.

4. All wholesale dealers of Country Liquor, Spiced Country Liquor and Indian made Foreign Liquor (IMFL)

5. All such dealers who fulfilled following criteria in the financial year 2010-11 :-

(a) have registered negative growth in Tax payment.

(b) have shown a negative difference of 20% or more in payment of tax and State average growth of the goods dealt in.

6. Contractors / Builders having annual GTO of more than Rs. 20 crores except Government undertakings.

The following categories of dealers will be exempted from VAT Audit for the financial year 2010-11 :-

(1) All Dealers filing return under Section-15 (Compounding Dealers).

(2) All dealers selected for Bhama Sah Samman on the basis of 2009-10 collection.

(3) All Retail dealers of Petrol and Diesel e.g Petrol Pump etc.

(4) All Retail dealers of MRP Goods, eg. Medicine, Fertilizer and Insecticides.

(5) All Retail dealers of Country Liquor, Spiced Country Liquor and IMFL.

(Sudhir Kumar)

Commissioner-cum- Principal Secretary,

Bihar, Patna.