pls guide (3cd)

This query is : Resolved

Dhanraj (Querist)
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14 September 2009 Dear sir

Please tell what needs to be indicated in regard to the following line in form 3CD if a proprietor debits vat(composition) to P.&.L account.

1)State whether sales tax, customs duty,excise duty or any other indirect tax, levy, cess, impost etc. is passed through the profit and loss account.

AND in regard to this line if the proprietor is for the first time under tax audit coz proprietorship concern normally don't disclose Accounting Policies,etc.

2)Details of deviation, if any, in the method of accounting employed in the previous year from accounting standards prescribed u/s 145 and the effect thereof on the profit or loss.

Thanks in advance

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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15 September 2009 1.If it is passed through P&L then write Yes
2.If there is no change in A/Cing policies then write N.A. IF any change then give the details and its effect on P&L i.e. increase or decrease.

CA Binal Shah

CA Binal Shah (Expert)
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15 September 2009 Hi,

Anjani is right. If VAT is debited to P & L a/c,write yes and indicate the amt e.g. VAT : Rs........

As regards 2nd point, its related to maintain VAT a/c separately which is called exclusive method of accounting. if separate VAT a/c is not maintained by the assesse, u just have to put note regarding it and give one calculation of net profit as per exclusive method.

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