As 9 - revenue recognition

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K Koteswara Rao (Querist)

24 June 2013 Sir,

statement of Profit and Loss (Revised Schedule VI) - Revenue from Operations are more than 1 core:

My question is; (a)If Sale value of products includes; (i) Sale of products value, (ii)Excise Duty & (iii)Sales Tax(VAT/CST).

And as far as Sales tax collections & payments thereon are concerned;
In each & every month it involves 2 points;
1)Collection of sales tax shown in sale bills separately.
2)Payments will be made to the concerned department after deduction of the following;
(a)Input Tax Credit (separately accounted on all eligible purchases made)
(b)Deferred Sales Tax (eligibility awarded by local state government)

Then how to disclose the following in statement of profit and loss & in its notes;
1) sale of products value - Gross/Net ?
2) sales tax collections made
3) Input tax credit
4) sales tax payments made
Thanks,
Koteswara Rao

Rupesh Jain

Rupesh Jain (Expert)

26 June 2013 at present under company act

excise duty and sales tax not required to gross up

you take slae of product and sale tax collection in liability a/c and also excise of sale as liability

sale tax and excise payment in Dr. to payable a/c

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