-Turnover for VAT audit includes Zero rated sales and Inter State sales as per Section 3 of the CST Act, 1956. The term “turnover” is aggregate of sales turnover plus the purchases turnover assessable to tax under Section 12 of Tamil Nadu VAT Act, 2006. -Discount allowed in the invoice itself is not liable for VAT and may not be part of turnover assessable to VAT. In other situations, the gross sale value is to be considered for working out the VAT liability and other discounts may be part of turnover. -Total Turnover = taxable turnover + sales of exempt goods + value of stock transfer + purchases assessable to tax u/s 12 + zero rated sales -Consignment turnover or agency turnover is to be included in agent's turnover if he is an agent of a non resident principal. If the agent is an agent of a resident principal, it is the principal who is liable under this act.

Accordingly to ensure the correctness of the returns filed by the dealers falling under the deemed assessment category, the Government have introduced section 63-A in the Tamil Nadu Value Added Tax Act, 2006 providing for audit of a dealer’s accounts by a Chartered Accountant or a Cost Accountant in the year 2013.