Closing stock - with tax or without tax ?
This query is : Resolved
31 May 2013
Dear friends, While uploading closing stock in Tally, whether it should be inclusive of tax or exclusive of tax? Kindly reply. urgent.
Dintakurthi Tirumala
(Expert)
31 May 2013
As per the AS-2 "Valuation of Inventory" Closing stock should be valued excluding refundable or creditable taxes or any other if any.
So if such taxes are either refundable or creditable and to be adjust in the future payment liability of tax then the value of closing stock should be excluding of taxes. In case of non-refundable or non-creditable taxes then value of closing stock includes taxes.
OM SAI SRI SAI JAI JAI SAI
So if such taxes are either refundable or creditable and to be adjust in the future payment liability of tax then the value of closing stock should be excluding of taxes. In case of non-refundable or non-creditable taxes then value of closing stock includes taxes.
OM SAI SRI SAI JAI JAI SAI
31 May 2013
Further, as per AS 2. Closing stock should be valued at Cost or Net Realizable value which ever is less. So if Cost is less the closing stock should include all taxes and duties less input credit taken or to be taken as suggested by expert above.
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