Finalising Accounts before Audit
1. Matching sales record with excise returns. This helps in confirming the top line of the company as the sales figure is highly relevant for other purposes eg VAT and Bank appraisal. If required excise return can be revised or unwanted error can be corrected.
2. Distinguishing Courier charges for vat purposes and other purposes. As VAT is payable on courier charges incurred for sale. Also service tax charged by courier agencies on other purposes can be claimed as set-off for cenvat purposes.
3. Confirming PAN of the transporters are held on record to avoid TDS penalty at later date.
4. Provisioning of Expenses and pre-paid expenses eg- electricity and insurance charges.
5. Summary of Service tax number of the vendor’s whose credit has been taken and check the genuineness from the tax department website.
6. Checking the TIN no of parties are not coming in hawala dealer list of the sales tax department.
7. If required proper TDS has been deducted on Director’s remuneration.
8. Checking if any service tax is payable on reverse charge basis.
9. Confirming that the transactions appearing in Bank Reconciliation has been cleared after 31st March.
10. Keeping detailed calculation of the Depreciation ready as per New Companies Act.
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