Inclusion of VAT

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Arihant

Arihant (Querist)

11 July 2010
Is VAT required to be included in sale or purchase of goods for the purpose of statutory audit?

sachin alwadhi

sachin alwadhi (Expert)

11 July 2010 i think no bcz for statutory audit only cost of goods sold or purchase is to be included.

Akhil Agrawal

Akhil Agrawal (Expert)

12 July 2010 yes dont include VAT. It happens in the Case of Excise tat in Sales it is included & then Deducted from Sales

Arihant

Arihant (Querist)

14 July 2010 Thank u but if we look at annual report of reliance for 2009-10 VAT paid is debited to P & L ... it shows that closing stock is valued inclusive of VAT.... is my doubt correct...??

Akhil Agrawal

Akhil Agrawal (Expert)

15 July 2010 well in that case i thinkthe VAT debited in pl would have been any type of penalty or interest paid under VAT because VAT is just collected & deposited so it cant become an expenditure in any case.

The closing stock can be valued including the VAT if entity is not availing any VAT input credit.

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