Dear Friends,

One of my client has recieved notice from LVO for filing VAT 240 for the FY 2010-11 & FY 2011-12. The notice has not asked the dealer to pay any interest or penalty. However, the notice says if the Audit report is not submitted within 10 days, the owner may be arrested and produced to Court. 

Now, the problem is the Dealer has lost its books of account for FY 2010-11, however the tax audit reports are available. The client has filed monthly VAT returns for all months and paid taxes due thereon. 

Can i now issue VAT 240 just based on the Monthly VAT 100s and Tax audit report. The books of account is not prepared (however bills and invoices are available).

Kindly advice what is the risk in doing so, 

Also, advice if interest and penalty is payable 


Posted 3 years, 10 months ago by HS VEDANTA DESHIKA

I would advice you to:

Prepare the books of accounts based on the any documents still available with client.

You can also prepare audit report based on the Tax audit documents. If the turnover as per tax audit and VAT returns is same than you can consider the vat returns and prepare audit report accordingly.

Posted 3 years, 10 months ago by Rahul Rai

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