HOW TO DO VAT AUDIT OF CONTRACTOR ?

HOW TO DO VAT AUDIT OF CONTRACTOR ?

How to do vat audit of contractor

Vat audit of contractors is very simple and easy task  because in case of contractor their is less complication as they have to just take sales of their flats or  houses  in whatever they are dealing .so before going through any thing just check out all their document and data provided by them carefully.

IMPORTANT STEP TO DO VAT AUDIT

1) Is he simply involve in construction work like contractor

2) Is he involve in man work related like work contract

3) Is he come under composition scheme

4) Is set-off available to him or not

 After clarify these thinks go through his document and  prepare excel sheet for their yearly sale keep in mind thing which are necessary  for doing vat audit . So for this you have to well aware of  the date  when sale take place or  when agreement happen

There is certain  thing to keep in mind when to impose vat and when to not for this verify

1) know the date of completion

2)know the date of agreement

3)where sale is directly done without agreement (in that case refer sales deed date)

So for doing vat audit take the sale amount ,  which are happen in the financial  year  if sale is done before completion of building then take that amount for vat only and which sales happen after the  completion of building leave that sale because vat is not  applicable to  that sale

Not only this when sale happen before completion then contractor have to pay not only vat but also have to pay service tax on that.

So after taking that sales amount calculate the tax at the rate of 1% and pay the tax.

If your going to purchase any flat then what kind of tax's you have to pay know in detail

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HOW TO DO VAT AUDIT FOR CONTRACTOR ?important things in contractor audits,rate of tax in contractor audits,vat audit of contractors ,type of scheme for contractors in vat, set-off for contractors ,steps to do contractor audits,