145A adjustment for income tax

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Rajeev Gosavi (Querist)

18 June 2007 Can some body guide me about 145A statement

(a) how to give treatement while calcuating the income tax for the company

(b) under what cicumsatance it should add and deduct from the profit.

(c) what are the items like Excise, VAT etc apart from the above to be added in the statement.

(d) if any body has excel file with practical example how to calculate the 145a and how to give effect in the income tax cacluation

Ravikumar.G

Ravikumar.G (Expert)

10 October 2007 In closing stock of FG should be shown with Excise duty as on 31.03... The same should be reversed as on 01.04... The impact of adding ED in FG nothing. Just for accounting 145A the same is added in the closing stock.
For better understaning i have uploaded regarding AS2 vis a vis sec 145A in our files portal. Kindly go thro the same it will help you more.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

28 September 2008 If you follow exclusive method (excluding tax and duties associated with purchase of materials)in your accounting, You will have to check up how does it look if in inclusive method is applied. Normally the result is revenue neutral. If for any reason there is difference representing under or over value, to that extent taxable profit will undergo a change.

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