Limited scrutiny

This query is : Resolved

Krishna Raja (Querist)
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25 August 2016 Respected Sir.
Good evening. I received LIMITED SCRUTINY letter from income tax department for following issues A.Y 2015-2016
1) Import turnover mismatch
2) Custom duty mismatch

I am proprietor of the company. During sep 2014 I have IMPORTED sheep crust leather from Nigeria for the value of usd- 202,529.70 ( INR-1, 27,43,733.84). on 90 days credit basis. After receive the shipment the quality of the leather is very bad. so I Can’t make the payment..i ask them to reduce the price but they refused And ask me to send back the material. Imported material is duty free as per our customs norms. If I return the material I have to pay 40% duty. so I keept the material in stock(total material in stock). Due to this issue THE VALUE OF THE IMPORTED GOODS NOT INCLUDED IN BALANCE SHEET.
My doubts are
1) How can I solve this issue?
2) If there is any chance for penalty? If yes how much I have to pay?
3) How can I prepare explanation letter.
Waiting for your valuable reply.

Thanks &Regards
raja

ACA Anurag

ACA Anurag (Expert)
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26 August 2016 Dear Krishna, It's a mistake as purchase was done before and goods was with you. In my opinion u should take a professional service from a nearest chartered Accountant or else tell us we will make it solve for you. kindly like if my response has helped you

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Krishna Raja

Krishna Raja (Querist)
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26 August 2016 Dear Mr.Anurag please give your contact details thanks krishns

ACA Anurag

ACA Anurag (Expert)
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26 August 2016 Dear Krishna, Send your detail on studenthelpline@hotmail.com As assessment, orders and other thing and with your contact number one of my office person will call you

Krishna Raja

Krishna Raja (Querist)
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26 August 2016 My contact number is 9677136999,will forward details soon.thanks

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