GOVERNMENT OF KARNATAKA

(Department of Commercial Taxes)

NO.ADCOM/ENF/SZ/AC-V/INS-9 /2013-14 Office of the Addl. Commissioner of
Commercial Taxes (Enforcement),
South Zone, V.T.K.II, 6th Floor, 80
Feet Road, Near National Games
Housing Complex, Vivek Nagar Post,
Koramangala, Bangalore.47.
Dated 29-01-2014

CATEGORY: B

INTELLIGENCE REPORT


1 Name and address of the
dealer
M/s.Gadhiraju Constructions Pvt. Ltd.
No.52/ 2, Ananthapur Main Road,
Yelahanka Bangalore
2 Additional places inspected Nil
3 TIN 29550895747
4 Date of inspection 10-05-2013
5 Nature of business Works contract
6 Books of accounts produced
for verification
Purchase and sales register, Purchase and
sales invoices, VAT returns
7 Books of accounts seized Nil
8 Period to which the report is
related
2012-13 and 13-14 under KVAT Act
9 Name & designation of the
Inspecting Officer
Sri M.B.Harishbabu
ACCT(Enf)-V, SZ, Bangalore.
10 Name & designation of the
person in charge
Sri RangaRao Accountant



BRIEF DETAILS OF THE INSPECTION:


The place of business of the above dealer was inspected by the
Asst. Commissioner of Commercial Taxes(Enf)-V, South Zone, Bangalore on
(by my predecessor) 10-05-2013. At the time of inspection Sri Ranga
Rao,Accountant of the company was present, produced the books of accounts
and attended to the entire inspection proceedings.


Contd.2/-
- :: 2 :: -

During the course of inspection and on verification of books of accounts,
the Inspecting Officer has noticed the following omissions/discrepancies:
That the dealer has opted for COT wef 01-04-2013 and for April and May 2013
the URD purchase of sand and jelly worth Rs. 3,50,000/- was not declared . The
tax on the same of Rs. 19,250/- was admitted and discharged in the LVO
concerned. On perusal of the records it was observed that the dealer opted to
pay composition wef 01-04-2013. Therefore it was required to find out the
value of stock as on the date of transfer to COT as the input tax on such
value is not to be claimed as per section 19(3) of the KVAT Act, 2003. In
response to the notice issued , the dealer produced the account of stock as on
31-03-2013 which is Rs. 15,47,950/- As at the end of the tax period of
March 2013 the dealer had claimed refund of input tax of Rs. 1,54,795/-
which is a tax incurred on closing stock for which he is not entitled as input
tax credit for the reasons cited supra. The dealer has agreed for the same.
Penalty u/s 74 of the Act of Rs. 5,000/- is also collected.


I am forwarding herewith the above information to utilise the said
information while concluding the /re-assessment of the dealer. The result of
action taken may please be intimated to this office for records.


Receipt of this report may please be acknowledged.



Asst. Commissioner of Commercial Taxes
(Enforcement)-5 South Zone., Bangalore.

To

The Joint Commissioner of
Commercial Taxes(Admn.)
Divisional Vat Office-V
Bangalore.

Copy to the LVO 150 Addl. for information.