The Council of the Institute of Chartered Accountants of India (ICAI) in its meeting held recently in New Delhi has decided to finalise the Form of Model VAT Audit Report and particulars to be furnished therewith for assisting the State Governments in the recovery of proper VAT revenue. The main advantage of Model VAT Audit Report and the relevant particulars mentioned therein is that they will be uniformly applicable in respect of books of account maintained by VAT payers in different States in terms of the relevant State VAT legislations. This uniform report will gradually help in the evolution of standard accounting principles and uniform accounting practices in respect of the various issues arising under VAT. In this regard, Dr. Asim Dasgupta, Chairman of the Empowered Committee of State Finance Ministers on VAT, while dedicating to the Nation the Guidance Note on Accounting for VAT prepared by the Institute, had reposed his confidence in the ability of the Institute of Chartered Accountants of India as a premier body in accounting to help the Government in implementing VAT.

The said Model Report would be forwarded very shortly to the various State Governments who would be requested to incorporate the Form of VAT Audit Report and the particulars to be furnished therein while formulating the respective VAT Rules. Such incorporations by the State Governments will help in the development of uniform and standard accounting practices. This would help in the harmonization of accounting parameters relating to VAT throughout the country. Once the Model VAT Audit Report is accepted or incorporated by the State Governments in their Rules the Institute proposes to come out with appropriate guidance notes.

The ICAI will come out with the background material on State-level VAT which would form the basis for Chain Seminars to be conducted throughout the country for preparing the members to discharge their onerous responsibility. The Chain seminars are likely to begin in the coming month.