Inclusion of VAT

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Arihant

Arihant (Querist)
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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)
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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)
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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)
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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)
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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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