Introduction:
The Legislative
Assembly of the State of Tamil Nadu in the 57th
Year of the Republic of India had formulated the Act and Rules consolidating and amending the law relating to the levy of
tax on the sale or purchase of goods in the State of Tamil Nadu. The Act so formulated is
the Tamil Nadu VAT Act 2006 and the Rules
formulated by the Government of Tamil Nadu is the Tamil Nadu VAT Rules 2007.
Applicability:
The Act
and the Rule has come into force on January 1, 2007 and it is applicable to the
whole State of Tamil Nadu.
Tamil Nadu Vat Act 2006:
As per
this Act every dealer shall pay tax at the rate specified on every sale of the
goods specified in the First Schedule.
Every
dealer dealing in goods subject to VAT, is eligible to deduct the tax paid on
purchases (input tax) from the tax payable on sales, subject to the conditions
prescribed.
Tamil Nadu Vat Audit:
Section 63 A – TNVAT Act, 2006
Subject
to the Circular No. 09 / 2012 Dated 14th September, 2012 issued by the Department, a new Section 63-A
to TNVAT Act, 2006 has been introduced by the Act No.18 of 2012.
As per
this Section a registered dealer has to get his accounts audited by an
accountant if the total turnover of the dealer including zero rate sale and sale
in the course of inter-state trade or commerce as specified in section 3 of the
CST Act, 1956 exceeds one crore rupees in a year.
The
Accountant here includes a Cost Accountant or a Chartered Accountant.
Applicability: The TNVAT
Audit is applicable from the FY 2012-13.
Rule 16 A of the TNVAT Rules, 2007
Rule 16A
of TNVAT Rules, 2007 was formulated to provide the procedure for filing the Mandatory Audit Report with the Commercial
Taxes Department.
As per
this every registered dealer liable to get his accounts audited as provided
under sub-section (1) of section 63 A shall furnish the audit report in Form – WW within 7 months from the end of the year
in duplicate.
The
following information has to be provided along with the Form WW (Audit Report
U/S 63-A of the Tamil Nadu Value Added Tax Act, 2006):
-
Summary
of the additional tax liability or additional refund due to the dealer as on
the date of the audit for the year.
-
Annexure:
o
Part
A – General Information
o
Part
B – Computation of Turnover Assessable under the Tamil Nadu Value Added Tax
Act, 2006
o
Computation
of Purchases.
o
Details
of Input Tax Credit Reversal / Adjustment
o
Turnover
under the Central Sales Tax Act, 1956
o
Details
of Input Tax Credit availed on purchase of Capital Goods (Other than parts and
accessories)
o
Total
input tax credit on Capital goods
o
Details
of delayed filing of returns / payment of taxes
o
In
case of trading concerns other quantitative information
The Notice
for the levy of penalty / Interest will
be issued in Form RR
