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Tax Audit (Income Tax)

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This query is : Resolved

Author : Anonymous

( Author )
27 September 2010

are we supposed to take average stock(avg+clo/2) in tax audit clause 32 for calculation of stock turnover ratio or only closing stock (of finished goods which is recommended by icai through guidance notes), if answer is closing stock ,is it specified anywhere i income tax act or rule ?

CA Navin Jain

( Expert )
27 September 2010

on closing stock

B.Chackrapani Warrier

( Expert )
27 September 2010

Page 137 Of "Issues on Tax Audit" an ICAI publication says ratio is to be calculated on closing stock value only.

B.Chackrapani Warrier

( Expert )
27 September 2010

Page 47 (volume 115,issue no.1)of "The tax Refencer" a weekly publication of Direct taxes says, there can be different interpretations as to the items involved like gross profit,turnover,stock-in-trade. Place a suitable note explaning the basis adopted.



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