In exercise of the powers conferred by sub-rule (2) of Rule 17A of the Maharashtra Value Added Tax Rules, 2005 (hereinafter referred to as "principal Rules") the Commissioner of Sales Tax, Maharashtra State, hereby, amends with effect from the 1st April 2018, the Notification No. VAT/AMD-1009/1B/Adm-6 dated 26th August 2009, as follows namely:-
For the Form-704, appended to the principal Rules, the following form shall be substituted namely,-
(See rule 65 and sub-rule (1) and (2) of Rule 17A)
The Audit Report under the Maharashtra Value Added Tax Act, 2002.
INSTRUCTIONS
(Please read the instructions carefully before filling the report)
1. Any audit report filed on or after 1st April 2008 shall be in this form.
2. This Audit Report is to be submitted by all the dealers to whom the provisions of Section 61 of the MVAT Act, 2002 apply. Non-filing of Audit Report within prescribed time is an offence.
3. This report is divided in two parts, which are as under:-
Relevant Schedules applicable, as per type of return
4. Instructions for filling information in the return(s) remain applicable for respective items of the schedules. If, while filing returns, these instructions have not been followed, it should be ensured that they are followed while preparing the audit report. In other words use schedule as is applicable.
5. Fill the applicable portion of 1(A), 1(B) and 1(C) of Part 1. If Part 1(A) is filled then 1(B) and 1(C) should not be opted. In case 1(B) is opted then 1(A) and 1(C) should not be opted. In case 1(C) is opted then 1(A) and 1(B) should not be opted. If this instruction is not followed then the error message appears as "Please Check and Enter Box Nos. 1(A), 1(B), 1(C)".
6. Negative certification, if any is to be incorporated with reasons, at Sr. No. a to p. in Para-3 of Part-1 and should correspond to the relevant certificate. Further, the auditor's remarks are to be included at Para 5 of Part-1 and qualifications having the impact on the tax liability in brief. Wherever applicable.
7. Tax liability under the MVAT Act, 2002 and CST Act, 1956 should be computed respectively, in Table 2 and Table 3 of Part 1.
8. Where dealer is required to maintain the records about the sales, purchases, Imports and Exports under Central Excise Act, 1944, the Customs Act, 1962 or under the State Excise Act, 1949 in such cases the Auditor should invariably correlate the details of sales, purchases, Imports and Exports disclosed under the said Acts and disclosed under MVAT Act, 2002 Any material difference noticed should be reported at Para 5 of Part-1 accordingly.
9. The difference between amount as per returns and amount as per Audit gets calculated in respective Schedules which are filled by the dealer.
10. In Annexure-A details of amount of tax paid as per returns / challan under MVAT Act and interest paid u/s 30(2) are to be filled. The details of Refund Adjustment Order issued and amount adjusted against the tax payable for the period under Audit are also to be filled in this annexure.
11. In Annexure-B details of amount of tax paid as per returns / challan and interest paid under Section 9(2A) of CST Act are to be filled. The details of Refund Adjustment Order issued and amount adjusted against the tax payable for the period under Audit are also to be filled in this annexure.
12. In Annexure-C(N) details of tax deducted at sources certificate received by the dealer are to be filled.
13. In Annexure-D(N) details of tax deducted at sources certificate issued by the dealer are to be filled.
14. In Annexure D1- details of tax collected at source certificates received by the dealer are to be filled.
15. In annexure E- details of purchases on which the set-off is claimed by the dealer are to be filled. The details regarding set-off on capital assets, non-admissibility of set-off under rule 54, reduction of set-off under rule 53 etc. are to be filled in this annexure. Section-1:-Total tax paid,purchases effected from unregistered dealer during the period under audit (including capital assets) and total purchase tax paid- (purchases of cotton and oilseeds from un registered dealer as per section 6A and 6B)
16. In annexure F(N)- details about stocks, assets, receipt, turnover of sales and purchases as per profit and loss account, non-sales income, out of Maharashtra purchases which are capitalized. Also, the credits availed in Tran-1 of MGST ACT, 2017 need to be filled.
17. In annexure G(N)- details about declarations or certificates received and not receivedunder the Central Sales Tax Act, 1956 is to be filled. TIN of the customer should be filled in applicable cases.
18. The tax liability as per annexure G (N), if any, gets reflected in figure as per audit row (xi) of Table-3 of Para-4 of Part-1.
19. The sale annexure- is for filling in the information of customer wise local and OMS sales.
20. The purchase annexure- is for filling in the information of local and OMS supplier wise purchases.
21. In annexure H(N)- determination of gross turnover of sales and purchases along with reconciliation with profit and loss account, trial balance/ sales and purchase register.
22. A sheet is provided in the beginning by the name "Letter of Submission". It is provided for dealer's statement regarding submission of the Form-704 and acceptance of auditor's recommenda-tions. It is to be submitted to the prescribed authority alongwith acknowledgement of Form-704.
23. In case of annexure after pressing the button for validation only one error appears at a time. After correcting the same next error appears. Errors in annexure can be avoided if the rows in which information is to be filled are completely filled.
24. An acknowledgment will be generated in case of successful uploading of this audit report. It will show the transaction Id and date of uploading along with some other fields. The dealer is required to submit a print of this acknowledgment to the nodal officer.
25. Unless the dealer submits signed acknowledgment on or before the date mentioned in the trade circular, the audit report even if electronically uploaded on or before the date mentioned in the trade circular, shall not be deemed to be filed.
26. It is mandatory for the auditor to visit the principal place of business and the place where major business activities are carried out before the date of furnishing of audit report to the dealer.
27. It is mandatory to fill Part 1 and the applicable schedules and annexure. An option is available at the top right hand corner of each schedule to choose whether it is applicable. The option is named as "Applicable" and allows option to select "Yes or No". It is mandatory to select "Yes" in case of applicable schedule and "No" in case of non-applicable schedules. Once a dealer selects the option "No" then he shall not enter any information in the schedules for which the option selected is "No".
28. The annexure which are not applicable should be left blank.
29. It is mandatory to fill all the cells of Part 1 and Annexure F(N). In case any field or box is not applicable, '0' (zero) in numerical fields and 'N.A.' in text fields should be entered.
30. In all the Schedules and Annexure it is mandatory to fill applicable rows completely i.e. if one cell in a row is filled then it is mandatory to fill all the cells in that row.
31. Wherever the words "Please Specify" appear it is necessary to specify the description.
32. The green and shaded fields are non-enterable. The green fields have been given formulas and are auto filled.
33. Most of the fields of Part 1 are auto filled, once the Annexure and the Schedules are filled. Hence it is advised to fill Form 704 in the order:- First Annexure A to H(N) then, Schedules I to VI then Part I and lastly submission.
34. After validating any sheet i.e after the validation button is pressed , the error sheet shows only the errors in that particular sheet. After pressing the validation button in Part I , errors in entire form are shown. After successfully validating the Part I, -Rem.txt file will be generated and gets saved in My Documents. The dealer may upload this file after logging on to www.mahagst.gov.in under his login Id and password for e-services.
35. Do not copy and paste data in Form 704. It may corrupt the Form 704 and may not be get validated.
36. Do not enter in cell - Transaction Id - of Letter of Submission as - ST-REQ. Keep the field blank while validating form 704, as Transaction Id is generated only after successful uploading of form 704 and not before that. After successful uploading of form 704, Transaction Id should be entered in letter of submission, before taking print of the same, so as to submit to the Sales Tax Department.
37. Part 1 is mostly auto filled. Fill the relevant Form 704 Schedules and Annexures completely.
38. For any query in e filing of Form 704 please send email at e704help@gmail.com along with Form 704 filled by you, screen shot of error, brief description of error and your contact number.
FORM .. 704
(See rule 65)
Audit report under section 61 of the Maharashtra Value Added Tax Act, 2002.
Statement of Submission of Audit Report in Form-704
PART .. 1
AUDIT REPORT AND CERTIFICATION
1. The audit of M/s.................................... holder of Tax Payer Identification Number ........................ under the Maharashtra Value Added Tax Act, 2002 (hereinafter referred to as "the MVAT Act" and Tax Payer Identification Number........................ under the Central Sales Tax Act, 1956 (hereinafter referred to as "the CST Act" ) is conducted by (*) me/us (Chartered accountants/cost accountant) in pursuance of the section 61 of the MVAT Act .
1(A) (*) The Tax Audit under the provisions of the Income Tax Act, 1961 was conducted by (*) me/us/ M/s ________________________________________________________________________________
Chartered Accountants. We have taken on record Tax Audit Report dated ________
alongwith all the annexures to those reports and copies each of: -
(a) the audited (*) Profit And Loss Account / Income And Expenditure Account for the year ended on ____________________________;
(b) The audited balance sheet as at ___________________;
1B. (*) The Tax Audit of the dealer under the provisions of the Income Tax Act, 1961 has not been conducted but the Statutory audit is conducted under ___________ Act. Therefore, we have obtained the Audit Report, Balance Sheet as at __________________ and the Profit and Loss Account/Income and Expenditure A/c for the financial year ended on ____________.
1C. (*) The dealers books of account are not audited under any statute.
Therefore, we have obtained the Balance Sheet as at __________________ and the Profit and Loss Account/Income and Expenditure A/c for the financial year ended on ____________ duly certified by the dealer.
Maintenance of books of accounts, sales tax related records and preparation of financial statements are the responsibilities of the entity's management. Our responsibility is to express an opinion on their sales tax related records based on our audit. We have conducted our audit in accordance with the standard auditing principles generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the sales tax related records and financial statements are free from material mis-statement(s). The audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates by management as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.
2(A). I/we have verified correctness of the tax liability of the dealer in respect of below mentioned sales tax returns.
TABLE-1
appropriate Box)
2(B) Subject to my/our remarks about non-compliance, shortcomings and deficiencies in the returns filed and tax liability computed and presented in respective schedules and Para-4 of this Part, I/We certify that,-
c) The books of account and other sales tax related records and registers maintained by the dealer alongwith sales and purchase invoices as also cash memos and other necessary documents are sufficient for computation of the tax liability under the MVAT Act and the CST Act and the gross turnover of sales and purchases, determined by us, includes all the transactions of sales and purchases concluded during the period under audit.
d) On the basis of an information available on the website of the department the period under audit involves no issue in the case of this dealer in which a decision against the State Government or the Commissioner was delivered by the Tribunal and the reference and/or appeal therein is pending before appropriate forum except detailed in table 7 herein below, if applicable.
e) The adjustment to turnover of sales and or purchases is based on entries made in the books of account during the period under audit and same are supported by necessary documents.
f) The deductions claimed from the gross turnover of sales and other adjustments thereto including deduction on account of goods return, adjustments on account of discounts as also debit/credit notes issued or received on account of other reasons, are supported by necessary documents and are in conformity with the provisions of the relevant Act.
g) Considering the schedule and entry wise classification of goods sold, classification of exempted sales, sales at reduced rates are correct. The tax leviable on sales is properly computed by applying applicable rate of tax and/or composition tax.
h) Computation of set-off admissible in respect of purchases made during the period under Audit and adjustments thereto are correct. While ascertaining the correctness, *I/We have taken into account the factors such as goods returned, adjustments on account of discounts as also debit /credit notes issued or received on account of other reasons and these claims and adjustments are supported by necessary documents. The Set-off is worked out only on the basis of tax invoices in respect of the purchases.
i) Wherever the dealer has claimed sales against the declarations or certificates; except pending declarations or certificates as given in annexure-G(N), all such declarations and certificates are produced before me. I/we have verified the same and they are in conformity of the provisions related thereto.
j) Computation of cumulative quantum of benefits (CQB), wherever applicable, is in conformity with the provisions of the Act in this regard.
k) The records related to the receipts and dispatches of goods are correct and properly maintained.
l) The tax invoices in respect of sales are in conformity with the provisions of law.
m) The Bank statements have been examined by *me/us and they are fully reflected in the books of account.
n) *I/we certify that *I/we have visited the principal place of business or a place of business from where major business activity is conducted by the dealer. The dealer is conducting his business from the place/places of business declared by him as his principal place of business/and the additional place of business.
o) Due professional care has been exercised while auditing the business and based on my/our observations of the business processes and practices, stock of inventory and books of account maintained by the dealer, I/we fairly conclude that, sales tax related records of the dealer reflects true and fair view of the volume and size of the business for period under audit.
p) I have verified that the purchases effected by the dealer in respect SEZ Unit of the dealer are used in the said Unit.
3. Out of the aforesaid certificates; the following certificates are negative for the reasons given hereunder:-
a) _________________________________________________________________________________
b)__________________________________________________________________________________
c) __________________________________________________________________________________
d)__________________________________________________________________________________
e)__________________________________________________________________________________
f)__________________________________________________________________________________
g)__________________________________________________________________________________
h)__________________________________________________________________________________
i)__________________________________________________________________________________
j)__________________________________________________________________________________
k)__________________________________________________________________________________
l)__________________________________________________________________________________
m)__________________________________________________________________________________
n)__________________________________________________________________________________
o)__________________________________________________________________________________
p)__________________________________________________________________________________
4. COMPUTATION OF TAX LIABILITY AND RECOMMENDATIONS
TABLE-2
UNDER MAHARASHTRA VALUE ADDED TAX ACT, 2002
(Rs.)
TABLE-3
UNDER CENTRAL SALES TAX ACT, 1956
TABLE-4
CUMULATIVE QUANTUM OF BENEFITS AVAILED
TABLE-5
Classification of additional dues with calculation of Tax and interest thereon
5. Qualifications or remarks having impact on the tax liability:-
(a) ___________________________________________________________________________________
(b)___________________________________________________________________________________
(c) ___________________________________________________________________________________
(d) ___________________________________________________________________________________
(e) ___________________________________________________________________________________
6. Dealer has been recommended to:-
TABLE-6
AUDIT REPORT
FORM - 704
PART - 2
SCHEDULE-I
LESS
Value of goods return including reduction of sale price on account of rate difference and discount
Difference in Tax Amount
eligible for set- off
As per Return
Form- 704
PART-2
SCHEDULE-II
Difference in Tax Amount (Rs.)
Purchases (Rs.)
Form - 704
SCHEDULE-III
To be shown in table 3,4,4A,5,6,7,8 9 & 11
SCHEDULE-IV
SCHEDULE-V
SCHEDULE-VI
ANNEXURE-A
ANNEXURE-B
ANNEXURE-C (N)
No.
ANNEXURE-D(N)
certificate
no., if
(Rs)
ANNEXURE-D1
No
address of the
employer
collecting the Tax
employer, if
any or
PAN/TAN
No., if any
on which
TCS made
of TCS
as per
ANNEXURE-E
SECTION-4:-Details of Tax paid purchases on which set-off is admissible after reduction under rule 53.
Eligible for set-off (e-g)
by the dealer in Return
ANNEXURE-F (N)
ANNEXURE-G(N)
customer
of
buyer
type
taxable
amount
Rs.
total
commodity
separately
supplier
other
cost of
purchase
ANNEXURE-H (N)
RAJIV JALOTA,
Commissioner of Sales Tax,
MaharashtraState, Mumbai.