sales for Tax Audit
This query is : Resolved
08 October 2009
Recently , the auditor of the company asked for sales figure for the purpose of tax audit. it is net to Rs.39 lacs. but he added excise duty to it n says the sales r crossing Rs40 lacs, so Tax Audit is due.
My stand is that sales doesn't include duties n taxes ie excise duty n sales tax,so no Tax Audit due.
Please clear the confusion.
My stand is that sales doesn't include duties n taxes ie excise duty n sales tax,so no Tax Audit due.
Please clear the confusion.
09 October 2009
If sales tax and excise duty are included in the sales price no adjustment can be made thereof to consider the quantum of turnover for the purposes of Sec 44AB
If however excise duty is credited seperately to a different account and payments of excise duty is debited to such seperate excise duty account they would not be included in turnover for the purposes of sec 44AB
If however excise duty is credited seperately to a different account and payments of excise duty is debited to such seperate excise duty account they would not be included in turnover for the purposes of sec 44AB
09 October 2009
The term used in Section 44AB is sales, Turnover or gross receipts. Since indirect taxes are a part of receipts Audit is certainly applicable if the receipts including indirect taxes exceed Rs 40 Lakhs.
10 October 2009
Excise being an intergal part of sales it is included in sales, & also 44AB states gross T/O, your auditors statement is right
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