WB VAT Trade Circular: Vat Audit Report in Form 88 for the year 2011-2012.

Nov-15th-2012

Trade Circular No. 17/2012

Dated: 09.11.2012

Sub: Vat Audit Report in Form 88 for the year 2011-2012

  1. Section 30E of the West Bengal Value Added Tax Act, 2003 requires certain categories of registered dealers to submit a copy of the Profit & Loss Account and Balance Sheet along with the audit report of a Chartered Accountant or Cost Accountant in Form 88 in respect of a financial year within the next 31st day of December.
  2. After the amendment made through the Finance Act, 2012 in section 30E, registered dealers (other than those registered under the Companies Act, 1956) with turnover of sales or contractual transfer price or both not exceeding Rs. 3 Cr are not required to submit the above Form 88 from the financial year 2011-12 onwards.
  3. For registered dealers (other than those registered under the Companies Act, 1956) having turnover of sales or contractual transfer price or both exceeding Rs 1.5 Cr and upto Rs. 3 Cr., a new subsection (1C) has been inserted in section 30E whereby such dealers within the time stated above have to submit together with a copy of the Profit & Loss and Balance Sheet a self audit statement in Form 88A made effective from the financial year 2012-13 only.
  4. The prescribed format of Form 88 has been substituted and the new one is exhaustive covering not only the information called for in the old format but various other information relating to different ratios, manufacturing, import of goods, etc. Since the new format of Form 88 was prescribed only in the end of June, 2012, it has been reported that several registered dealers have already submitted the audit report in the old format or got their VAT audit completed on that basis only and Form 88 is just pending for submission. Representations too have been received from the Institute of Chartered Accountants of India and industry that the VAT audit report for the year 2011-12 may be accepted in the old format of Form 88 instead on the new one.

 

After careful consideration and discussion with the Departmental Officers it is decided that Form 88 even if submitted within 31.12.2012 in the old format for the year 2011-12 will be accepted for the purpose of section 30E. This arrangement shall be effective for the financial year 2011-12 only. All assessing and other authorities are requested to adhere to the above. From the financial year 201213 onwards all registered dealers as referred to in section 30E shall have to submit Form 88 in the new format or Form 88A, as the case may be.

Editor

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