After the Dealer has got him registered under MVAT Act, the department conducts Advisory Visit at the dealer’s premises, at the registered address given at the time of application for registration.
A team of Sales-tax officer and Sales-tax Inspector from the Advisory Visit Branch does the advisory visit. This visit is conducted within the period of three to six months of registration.
The main object of the advisory visit is to i) verify the information given by the dealer at the time of registration, ii) to appraise the dealer about the provision of vat law and iii) to ascertain the revenue reliability of the dealer.
After receiving the registration records form Registration Branch, the cases are allocated to the team, by the higher authority in Advisory Visit Branch. The concerned inspector fixed appoint for visit with the dealer. The appointment is fixed on telephone. The visit is conducted by the team at the place of business of the dealer given in registration form.
The dealer is required to keep the following details ready at the time of the visit.
i. Books of accounts of the dealer,
ii. Sales purchase bills,
iii. Copies of challan for payment of MVAT, CST & Profession Tax.
iv. Summary of sales/purchase form the date of registration,
v. Details of sales-purchases during URD period, i.e. before registration,
During the visit, the advisory team will verify the
i. genuineness of the information given by the dealer at the team of registration,
ii. determine turnover during the URD period and liability for URD period if any,
iii. inform the dealer about various provisions of MVAT and related laws,
iv. determine the revenue reliability of the dealer as poor, average and good.
v. if books are not kept or challans are not produce the dealer will be asked to produce the same at the STO’s office.
Non availability of the these details will effect the revenue reliability rating given by the Advisory visit team and they my forward the case to Business Audit Branch or Enforcement Branch for further action. They will mark such cases with poor revenue reliability.
If the Advisory team finds that dealer is having taxable sale during the URD period, he will forward the case to URD section for further action and assessment of liability during the URD period.
The Advisory Visit team will give poor revenue reliability rating if :
i. if dealer has no sale / purchase till date of visit even after 2-3 months from grant of registration,
ii. No books of accounts maintained,
iii. Wrong claims, deductions are noticed,
iv. Stock not commensurate with invoices and books of accounts
v. The dealer is table space dealers,
vi. The dealer is avoiding advisory visit,
vii. The dealer produces old Shop and Establishment license,
viii. Expenditure on office space and establishment not commensurate with sales shown in books of accounts/returns.
After completing the Visit the STO prepares a report. As the report is not of much importance, the officer doesn’t give the report to the dealer. However the dealer may ask the STO for copy of the report.
