THE RAJASTHAN VALUE ADDED TAX ACT, 2003 Notifications
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Body NOTIFICATION No. No. F26 (376) /BA/CCT/2018-19/16 dated 12th July, 2018

Sub: Regarding audit under section 27 of the Rajasthan Value Added Tax Act, 2003.

In exercise of the power conferred under section 27 of the Rajasthan Value Added Tax Act, 2003 (hereinafter to be referred as 'the Act'), I, Alok Gupta, Commissioner, Commercial Taxes, Rajasthan, Jaipur, hereby, specify the following criteria for selection of cases for audit under the said section for the year 2016-17.

The selection of cases for audit under the said section shall be made on the basis of the risk parameters as given in column No. 2 of the table given below and weights for each dealer shall be assigned in accordance with the manner given in column No. 3 and 4 of the said table.

TABLE

S. No.	Risk Parameter	Weight Units	Maximum Risk weightage units for a particular field
1	2	3	4
1	Dealers claiming Refund		20
	• Less than 5 lac	10 units
	• More than 5 lac	20 units
2	Dealers claiming ITC		30
	• Less than 5 lac	5 units
	• 5-10 lac	10 units
	• 10-25 lac	20 units
	• More than 25 lac	30 units
3	Gross Turnover of Dealer		30
	• 50 lac to 1.5 Crore	10 units
	• 1.5 Crore to 5 Crore	20 units
	• More than 5 Crore	30 units
4	Dealers having branch transfer/SOS or sale in transit or both more than 25% of the gross turnover.	30 units	30
5	Business Trend (decrease in Volume of turnover as Compared to immediately preceding Year)		30
	• Upto 10%	5 units
	• Above 10% and Upto 20%	10 units
	• Above 20% and Upto 30%	20 units
	• 30% or more	30 units
6	Business Trend (increase in ITC claim as Compared to immediately preceding Year)		30
	• Less than 20%	10 units
	• Above 20% and Upto 30%	20 units
	• 30% or more	30 units
7	Business Trend (Decreasing trend as compared to other dealer in same trade)		30
	• Less than 20%	10 units
	• Above 20% and Upto 30%	20 units
	• 30% or more	30 units
8	Increase in percentage of exempted sales in GTO		30
	• Upto 20%	10 units
	• Above 20% and Upto 30%	20 units
	• 30% or more	30 units
9	Mismatch of ITC		30
	• Upto 2 lac	5 units
	• Above 2 lac and Upto 10 lac	10 units
	• Above 10 lac and above	30 units
10	Late filer of quarterly returns
	• One return late by 3 month	5 units	30
	• Two returns late by 3 months	10 units
	• Three returns late by 3 months	20 units
	• Four returns late by 3 months	30 units
11	Dealing in Tax Sensitive/Evasion prone Commodities.	30 units	30
12	Dealers availing benefits of deferment/incentive schemes and RIPS subsidy 2003/2010/2014.	20 units	20
13	Dealers against whom cases of evasion/avoidance of tax and/ or wrong/forge/ claim of ITC have been made during the previous year.	30 units	30
14	Works contractors who have opted for exemption fee for contracts amounting Rs. 1 crore or more.	30 units	30
15	Type of Dealer		10
	• Proprietorship	10 units
	• Partnership and H.U.F.	8 units
	• Private Limited Co.	5 units
	• Public Limited Co.	3 units
	• PSU	1 unit
	• Govt. companies	0 unit
	• Others	5 units
16	Business Activities		30
	• Importer	For one Activity 5 units For 1 to 3 Activities 10 units For 4 to 6 Activities 20 units For 7 to 8 Activities 30 units
	• Manufacturer
	• Wholesaler
	• Retailer
	• Effecting Inter-State Sales
	• Effecting Branch Transfers
	• International exporter
	• Works Contractor
17	Commencement of Business		10
	• In the previous year	10 units
	• Prior to previous year	5 units
18	Difference in Purchases / procurement against Form 'C' Form 'F' and turnover		100
	• Upto 10%	10 units
	• Above 10% and Upto 20%	20 units
	• Above 20% and Upto 30%	40 units
	• 30% or more	100 units
19	Previous Audit conducted under section 27		30
	• Within preceding 5 years	10 units
	• Before preceding 5 years	30 units
20	Dealers dealing in evasion prone commodity and having more than 25% of the gross turnover in the course of interstate trade or commerce.	30 units	30

The following types of cases shall not be taken up for Audit:-

(i) The dealer having turnover less than Rs. 50 lakhs for the year 2016-17.

(ii) Cases selected for audit for the year 2013-14, 2014-15 & 2015-16 shall not be considered for the selection for the year 2016-17.

A window in RajVISTA shall be created for information relating to item at serial number 11, 12, 13 and 19; this information shall be completed by the concerned assessing authority within fifteen days of development of such window.

The application software RajVISTA shall calculate the score of risk parameters for every dealer having turnover more than Rs. 50 lakhs. A report for each zone/circle shall be generated in descending order of risk. On the basis of such report, the cases for audit shall be selected. The total number of the cases so selected shall not exceed 5 % of the dealer who have filed return as prescribed under section 21 of the Act in Form VAT-10A/VAT-11 for audit under the said section in each zone/circle having turnover more than Rs. 50 lakhs. The selection of cases for audit shall be as under:

(i) 50% cases shall be selected on the basis of the highest score; and

(ii) 50% cases shall be selected from the remaining cases on the basis of highest score in each category.

Besides above, cases for audit may also be selected by the undersigned based on the analysis of data available on RajVISTA or such dealers against whom some third party information is received and local or specific intelligence indicates suspicious activities.

A module in RajVISTA shall be developed for the purpose of said audit. This module shall help in identification of cases for such audit and shall generate task for Auditor(s). The notice for audit shall also be generated by the system through this module, and the tracking of audit work shall be made available in this module.

The audit shall be conducted in accordance with the guidelines issued vide order No. F.16(48) Tax/CCT/2011-12/166 dated 01.05.2013. The auditor, after conducting the audit, shall furnish the VAT Audit report as prescribed in the said order in the said module in RajVISTA.

(Alok Cupta)

Commissioner,

Commercial Taxes,

Rajasthan, Jaipur.