Anil (b) 16 June 2008

KARNATAKA VAT - Audit

1) Is VAT audit mandatory in Karnataka for private companies who get their books audited under Companies Act as well as income Tax Act?

2)When is the last date for filing of Form 240 under Karnataka VAT?

3)Once an establishment is registered under Karnataka VAT should it be renewal every year like it was being done earlier under the Karnataka sales Tax Act? If yes, please let me know the Form to be used, the last date for filing such form as well as the fees to be paid for renewal and the cheque in whoes favour renewal fees is to be paid

4) Can one submit monthly KARNATAKA VAT form 100 online?

Kindly answer the questions pointwise in the order they are asked

Thank you

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5 Replies

V Ramanujam (Service) 17 June 2008

1. Companies registered under Companies Act are required to file Audit report signed by a Chartered Accountant in Form 240 - Refer Sec.31(4) of KVAT Act read with Rule 34(2) of KVAT Rules.

2. Such Audit report in Form 240 should be filed within 6 months from the end of the relevant financial year.

3. There is no requirement for yearly renewal of registration under the VAT Act.

4. So far, online submission of Return (Form 100) is not prescribed under the KVAT Act.

V Ramanujam (Service) 17 June 2008

1. Companies registered under Companies Act are required to file Audit report signed by a Chartered Accountant in Form 240 - Refer Sec.31(4) of KVAT Act read with Rule 34(2) of KVAT Rules.

2. Such Audit report in Form 240 should be filed within 6 months from the end of the relevant financial year.

3. There is no requirement for yearly renewal of registration under the VAT Act.

4. So far, online submission of Return (Form 100) is not prescribed under the KVAT Act.

Anil (b) 18 June 2008

Thank you very much sir.

I was informed by another member of lawyersclubindia that yearly renewal of Karnataka VAT is to be done using the Form VAT 6.

Request you to kindly confirm this. Also please let me know when is the last due date for submission of such form. Is there a leavy of any fees for renewal?

V Ramanujam (Service) 19 June 2008

As indicated already, there is no specific provision for yearly renewal of VAT registration in Karnataka. Form VAT 6 is required to be filed every year under Rule 38 (8) only to update changes in details of registration. The relevant rule is reproduced as under:

“(8) Every registered dealer shall submit a statement relating to his registration in Form VAT 6 along with the return in Form VAT 100 submitted in respect of the last month of that year in which there is a change in the details of his registration.”

Thus the form is required to be filed only when there is any change in the details of registration and the same is to be filed on a yearly basis along with Monthly return for the month of March.