VAT Annual Audit thorough MVAT audit certification that withstands scrutiny.
Comprehensive VAT annual audit services in Mumbai and across Maharashtra — MVAT audit under Section 61 of the MVAT Act, annual return preparation and CA certification, turnover and set-off reconciliation, VAT audit report submission, and pre-audit review for petroleum dealers, liquor dealers, and all MVAT-registered businesses.
The Maharashtra Value Added Tax (MVAT) annual audit under Section 61 of the MVAT Act, 2002, is mandatory for every dealer whose annual turnover of sales or purchases exceeds Rs 1 crore (or the threshold prescribed from time to time). The audit must be conducted by a Chartered Accountant, who reconciles the dealer's annual accounts with the returns filed, verifies the correctness of output VAT, set-off claimed, C-form and F-form compliance, and certifies the annual return in the prescribed form (Form 704) along with the audit report.
The MVAT annual audit is more intensive than a return filing exercise — it involves a cross-verification of the sales ledger with MVAT returns filed, reconciliation of purchases with set-off claimed, review of inter-state sales and C-form availability, examination of branch transfer F-forms, verification of VAT deduction at source (TDS) compliance for notified contractors, and reconciliation of VAT with income tax turnover declarations. Discrepancies identified by the auditor must be disclosed in the audit report and may attract additional tax demand.
Our MVAT annual audit practice covers pre-audit preparation review, accounts-to-return reconciliation, output VAT verification, set-off eligibility analysis, C-form and F-form audit, VAT TDS compliance review, Form 704 preparation and CA certification, audit report submission on the Mahavat portal, and handling of post-audit queries from the Sales Tax Department. We conduct MVAT audits for petroleum dealers, liquor dealers, and all MVAT-registered businesses across Maharashtra.
Our VAT Annual Audit Services
Pre-Audit Preparation
Internal review of returns, accounts, and records before the formal MVAT audit to identify and rectify gaps.
Turnover Reconciliation
Reconciliation of MVAT return turnover with audited accounts, Form 26AS, and income tax return.
Output VAT Verification
Verification of output VAT on sales at correct rates for each product category and customer type.
Set-Off Audit
Review of input set-off claimed on purchases — eligibility, rate, and reverse set-off requirements.
C-Form & F-Form Audit
Audit of C-form coverage for inter-state sales and F-form compliance for branch transfers.
VAT TDS Compliance Review
Review of VAT TDS deducted and deposited by notified contractors and sub-contractors.
Form 704 Certification
Preparation and CA certification of Form 704 — the MVAT annual audit report — and e-submission on Mahavat.
Post-Audit Query Handling
Response to queries and notices from the Sales Tax Department arising from the submitted audit report.
Our VAT Audit Workflow
Pre-Audit Review
Review all MVAT returns filed during the year, payment records, C-forms, and book of accounts.
Reconciliation
Reconcile turnover, output tax, and set-off between MVAT returns and audited financial statements.
C-Form & Set-Off Audit
Verify C-form availability for inter-state sales and set-off eligibility for all purchase categories.
Form 704 Preparation
Prepare and certify Form 704 with complete disclosure of observations and reconciliation differences.
Portal Submission & Follow-Up
Submit Form 704 on the Mahavat portal and respond to any post-audit queries from the department.
Benefits of Professional MVAT Audit
Frequently Asked Questions
Every MVAT dealer with annual taxable turnover of sales or purchases exceeding Rs 1 crore is required to get a VAT annual audit conducted by a Chartered Accountant and submit Form 704 on the Mahavat portal within the prescribed due date.
Form 704 is the MVAT annual audit report that must be certified by a Chartered Accountant. It reconciles the dealer's annual accounts with the MVAT returns filed, verifies set-off, C-form compliance, and discloses any discrepancies or additional liabilities found during the audit.
Form 704 must be submitted on the Mahavat portal within 9 months of the end of the financial year — i.e., by 31 December for the year ending 31 March. Extensions are sometimes granted by the Maharashtra government.
Discrepancies identified in Form 704 — such as short-declared turnover or excess set-off — must be disclosed. The dealer is liable to pay the additional tax disclosed in the audit report, and the department may initiate a further assessment based on the audit findings.
Yes, for the pre-GST period (up to FY 2016-17) for dealers who were above the audit threshold. Assessment proceedings for those years continue, and Form 704 submissions for outstanding years may still be required or reviewed by the department.
Need Your MVAT Audit Done?
From Form 704 preparation to CA certification and portal submission, our team conducts your MVAT annual audit accurately and completely.
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