Académique Documents
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Karnataka
Accounts, Documentation and Returns
Badrinath NR
Discussion on:
Accounts and documents to be maintained by dealers under the
provisions of Karnataka Value Added Tax Act, 2003
Returns to be filed as prescribed under the Act
Assessment proceedings
Accounts & Documentation
Accounts and Documents
Some questions:
What constitutes books of account?
How should such books be maintained?
What are the formats in which such books are to be maintained?
How should the transactions be recorded in the books of
account?
What is the relevance of maintaining the books of account?
Where should be books be kept / stored?
For how long should such books be preserved?
How should adjustments to the entries made, if any be recorded
and documented?
Relevant Provisions
Every registered dealer liable to pay tax is required to maintain true and correct
accounts in Kannada, Hindi, English or any of the languages notified by the
Government
Commissioner is empowered to notify registered dealers to maintain accounts
in specified manner
The dealers who maintain accounts and other documents electronically are
required to retain them in electronically readable formats
> Such records shall be maintained in paper printed on a monthly basis
Any changes in manual books to be made under an attestation
> Any changes in books maintained electronically must be supported by a
record of correction
Formats
Works Contracts
Particulars of names and address of the persons for whom
works contracts are executed
Particulars of goods procured (purchase or otherwise) for use in
execution of works contract
Particulars of goods utilised in execution of works contract
Details of payments received in respect of each works contract
Transactional Documents
Tax Invoice
Bill of Sale
Bill
Debit / Credit Notes
Delivery Challans
Sales Invoices
Delivery Challan
In Form VAT 515 (in lieu of Form
VAT 505)
Format, No. of copies, Printing
should be as prescribed
Register in Form VAT 520
Comparison
Sl. No. Contents Tax Invoice Bill of Sale Dr / Cr notes
1 Header BILL OF SALE Nature of document
2 Name and registered address
3 Registration Nos
4 Serial numbering
5 Document date
6 Date of sale
7 Name of the customer
8 Address of the customer
9 Registration no. of the customer
10 Time of sale of goods
11 Description of goods
12 Quantity
13 Amount
14 Rate of tax charged
15 Amount of tax
16 Total amount
17 Signature of authorised personnel
18 No. of copies 2 2 2
19 Indication for no. of copies
20 Tax invoice number
21 Tax invoice date
Recording of Transactions
Should be preserved for a period of 5 years from the end of the year to
which it relates
> In cases where assessments are yet to reach finality till the
completion of such assessments
> Where any appeals are pending till such time the appeal is heard
and finally disposed off
Other Records
TDS certificate
> Works contractor
Certificate in Form VAT 156
Register in Form VAT 157
> Caterer
Certificate VAT 158
Register VAT 159
CST
Monthly Returns:
> Form VAT 100: Within 20 days from the end of the relevant month
> Form VAT 120: Within 15 days from the end of the relevant month in case of
composite scheme
Annual Returns:
> Form VAT 115: Within 60 days from the end of the year
> Form VAT 135: Within 60 days from the end of the year in case of composite
scheme
Statement of tax deduction at source
> Works contracts Monthly Statement in Form VAT 125 (20th of the next month)
> Caterers Monthly Statement in Form VAT 126 (20th of the next month)
Audit Report
> Form VAT 240 9 Months from the end of the year
Penalty
Returns & Payment Short Payments
Upto 5 days 10% of the short payment
> Rs. 50 / day > If the short payment is
Beyond 5 days beyond 5% of the total tax
> Rs. 250 or Equivalent due
Amount of Tax WEH
Incomplete Returns
Additionally, 10% of the tax due Rs. 50 per day of default
payable as penalty
Due Dates
Monthly Return (Form VAT-100) 20th
Monthly Return (Form VAT-120) 15th
Annual Return (Form VAT 115) 30th May
Annual Return (Form VAT 135) 30th May
Revised Returns
- Monthly 6 Months
- Annual 31st Dec
Remittance of Net Tax 20th
Remittance of TDS 15th / 20th?
Tax on purchases from URDs 20th
Submission of Statutory Forms (CST) 3 Months from the
end of the quarter
Tax Invoice 14 days
Audit Report 31st Dec
Retention of Accounts & other documents 5 years
Other Filings
Concept of assessment has been done away with under the VAT law
> Assessments are deemed to be completed based on the returns
filed by the dealers
> Exception: Where the Commissioner notifies production of
records / documents before the prescribed authority
Assessment
To be completed within 5 years from the end of the tax period
> Tax period would be the relevant month for which the return is
filed
Re-Assessment
To be completed within 3 years from the date of obtaining evidence
for making the reassessment
WEL
If the LVO has reason to believe that the dealer would default in
payment of taxes due on a subsequent date
> LVO may make a protective assessment with the permission of
the JC / Ad C
> Taxes would be payable forthwith
> Order may be withdrawn within 30 days (suo-motu or based on a
application from the dealer)
Rectification
badrinath@accretiveglobal.com