18 August 2013
I have a query in Books of Accounts to be fianlised for submission of IT returns.
we have to file IT Returns in ITR 4S. i.e Presumptive basis
In our books, in P & L A/c we are having Closing stock balance higher than Sales value. Mainly due to heavy purchases towards end of year and lower sales.
Purchase cost has increased for the product. We are having only trading business. Sales realisation will increase in this year only when we sell these products.
we are regularly i.e every year paying IT.
So kindly advice we can submit the Balance sheet and P & L with Closing stock value higher than full year sales
18 August 2013
Since you are valuing closing stock on purchase cost it is immaterial if your closing stock is more than your slaes. You should look into the net profit figure that it is below 8% and you are showing taxable income as 8% of your turnover then you can file 4S provided the sales is below 1 Cr.
In your mail, you have mentioned you should look into net profit that it is below 8%.
for filing under ITR 4S, net profit should be more than 8%. Presumptive income and net profit are same. Thus net profit should be more than 8% for filing under ITR 4S.
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