No need of vat audit in Maharashtra if the tax liability is less than 25000/-

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No need of vat audit in Maharashtra if the tax liability is less than 25000/-

61. Accounts to be audited in certain cases:-

 1)  Every dealer liable to pay tax shall,-
1[(a) if the,-
(i) aggregate of his turnover of sales and the value of goods transferred to any other place of his business or of his agent or principal, situated outside the State, not by reason of sale, or
(ii) turnover of purchases ,exceeds rupees one crore in any year;]

2)  [(b)

3) [(c) if he holds an Entitlement Certificate in respect of any Package Scheme of Incentives, granted under this Act or, as the case may be, under the Bombay Sales Tax Act, 1959.]
get his accounts in respect of such year audited by an Accountant within the prescribed period from the end of that year and furnish within that period the 4[complete report of such audit] in the prescribed form duly signed and verified by such accountant and setting forth such particulars and certificates as may be prescribed.

4) a[Provided that, for the year 2017-18, the provisions of this   sub-section shall be applicable to a dealer, whose registration is deemed to have been cancelled under sub-section (6A) of section 16, if the,—

  • Aggregate of his turnover of sales and the value of goods transferred to any other place of his business or of his agent or principal, situated outside the State, not by reason of sale, or

(b) Turnover of purchases,  exceeds rupees twenty five lakh.]

4) b[Provided further that, a dealer whose tax liability, in any year commencing on or after the 1st April 2019 does not exceed rupees twenty-five thousand, shall not be liable to file such audit report. Explanation.—For the purpose of this proviso, the expression “tax liability” means the total of all taxes payable by a dealer under the Value Added Tax Act or, as the case may be, the Central Sales Tax Act, 1956, after adjustment of the amount of set-off or refund claimed by the dealer, if any, under the respective Acts.]

5) [Explanation-I.- 5a[For the purposes of this section and sub-section (1) of section 32A], “Accountant” means a Chartered Accountant within the meaning of the Chartered 6[Accountants Act, 1949 or a Cost Accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959)].
Explanation-II.- For the purposes of this section, an audit report shall be deemed to be the “complete audit report” only if all the items, certification, tables, schedules and annexures are filled appropriately and are arithmetically self-consistent.]

 (2) If any dealer liable to get his accounts audited under sub-section (1) fails to furnish a copy of such report within the time as aforesaid, the Commissioner may, after giving the dealer a reasonable opportunity of’ being heard, impose on him, in addition to any tax payable, a sum by way of penalty equal to one tenth per cent. of the total sales

6) [(2A) Where a dealer liable to file audit report under this section has knowingly furnished the audit report which is not complete, then the Commissioner may, after giving a reasonable opportunity of being heard, impose on him, in addition to any tax payable or any other penalty leviable under this section or any other section, a sum by way of penalty equal to one tenth per cent., of the total sales.]

7) [(3) Nothing in sub-sections (1) and (2) shall apply to Departments of the Union Government, any Department of any State Government, local authorities, the Railway Administration as defined under the Indian Railways Act, 1989 (24 of 1989), the Konkan Railway Corporation Limited and the Maharashtra State Road Transport Corporation constituted under the Road Transport Corporation Act, 1950 (64 of 1950).]
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1. This clause (a) substituted by Mah. Act No. XXVII of 2014 dated the 26th June 2014.  Prior to substitution this clause read as : “(a) if his turnover of sales or, as the case may be, of purchases [exceeds rupees sixty lakh] in any year, or
These words were substituted for the words ‘exceed or exceeds rupees fourty lakh’ by Mah. Act No.XII of 2010 dt.29.04.2010 w.e.f. 1st May, 2010

2. Clause (b) was substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005 and again deleted by Mah Act No. XXVII of 2014 dated the 26th June 2014.  Prior to deletion this clause (b) shall be read as :
“(a) a dealer or person who holds licence in,—
(i)     Form P.L.L. under the Maharashtra Distillation of Spirit and Manufacture of Potable Liquor Rules, 1966, or
(ii) Form B-RL under the Maharashtra Manufacture of Beer and Wine Rules, 1966, or
(iii) Form E under the Special Permits and Licence Rules, 1952, or
(iv) Forms FL-I, FL-II, FL-III, FL-IV under the Bombay Foreign Liquor Rules, 1953, or
(v) Forms CL-I, CL-II, CL-III, CL/FL/TOD-III under the Maharashtra Country Liquor Rules, 1973; “

3. Clause (c) was inserted by Mah. Act No.XII of 2010 dt.29.04.2010 w.e.f. 1st May, 2010

4. These words were substituted for the words “report of such audit” by Mah. Act No. XV of 2011 dt.21st April 2011 w.e.f.1st May 2011.

4a   This proviso was inserted by Mah. Act No. XXVI of 2018, dated the 31st March 2018 w. e. f. 1.4.2018.
4b. This proviso was inserted by Mah. Act No. XVI of 2019, dated the 9th July 2019

5. The existing explanation renumbered as I and explanation II newly added by by Mah. Act No. XV of 2011 dt.21st April 2011w.e.f.1st May 2011.
5a. These words were substituted for the words “For the purposes of this section” by Mah. Act No. VIII of 2013 dated the 20.4.2013 w.e.f. 1st May 2013.

5b. These words & figures were substituted for the words & figures “Accountants Act, 1949 (38 of 1949)” by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No. VAT.1507/CR-57/Taxation-1, dt. 10.8.2007.

6.These words were deleted for the words “or as the case may be, purchases or a sum of one akh rupees, whichever is less” by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No. VAT.1507/CR-57/Taxation-1, dt. 10.8.2007. s.17(1)

7. Proviso was deleted by Mah Act No. XXVII of 2014 dated the 26th June 2014 earlier this proviso was added by Mah. Act No. XIV of 2005, dt. 31st March, 2005 w.e.f. 1.4.2005 .Prior to deletion it read as under:
“Provided that, if the dealer fails to furnish a copy of such report within the period prescribed under sub-section (2), but files it within one month of the end of the said period, and the dealer proves to the satisfaction of the Commissioner that the delay was on account of factors beyond his control, then no penalty under this sub-section shall be imposed on him.”

8. Sub-section(2A) inserted by Mah. Act No.XV of 2011 dt.21st April 2011 w.e.f.1st May 2011.

9. Sub-section (3) was added by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No. VAT.1507/CR-57/Taxation-1, dt. 10.8.2007.
a dealer or person who holds licence in,—
(i)     Form P.L.L. under the Maharashtra Distillation of Spirit and Manufacture of Potable Liquor Rules, 1966, or
(ii) Form B-RL under the Maharashtra Manufacture of Beer and Wine Rules, 1966, or
(iii) Form E under the Special Permits and Licence Rules, 1952, or
(iv) Forms FL-I, FL-II, FL-III, FL-IV under the Bombay Foreign Liquor Rules, 1953, or
(v) Forms CL-I, CL-II, CL-III

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