VAT Audit limit has been raised to Rs. 10 Crore & submission of Income Tax Audit report becomes mandatory in WBVAT

By amend­ing sub-sec­tion (1A) of sec­tion 30E the mon­e­tary lim­it of fil­ing audit report in Form 88 has been raised from Rs. 5 Crore to Rs. 10 Crore with effect from the finan­cial year com­menc­ing on 01.04.2015. How­ev­er, under the amend­ed pro­vi­sions the amount of stock trans­fer shall also be tak­en into account along with the turnover of sales/contractual trans­fer price for com­put­ing such mon­e­tary limit.

Fur­ther, by sub­sti­tut­ing sub-sec­tion (1C), the pro­vi­sion for fil­ing Form 88A has been done away with. Instead, every reg­is­tered deal­er who is required to get his accounts audit­ed under the Income Tax Act, 1961, oth­er than those required to file Form 88, will have to file such audit report under the Income Tax Act, 1961, along with Prof­it & Loss Account and Bal­ance Sheet with­in the 31st Decem­ber from the end of the year.

It is per­ti­nent to men­tion here that a reg­is­tered deal­er, being a Pub­lic Lim­it­ed Com­pa­ny or Pri­vate Lim­it­ed Com­pa­ny, reg­is­tered under the Com­pa­nies Act, 1956, shall have to file Form 88 along with Prof­it & Loss Account and Bal­ance Sheet irre­spec­tive of the quan­tum of turnover of sales or pur­chas­es or con­trac­tu­al trans­fer price or stock transfer.