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Vat

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Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2014 Dear all,

plz let me know whether VAT paid on sales can claim as a expenditure for payment of Income Tax .

Nischit Sanghavi

Nischit Sanghavi (Expert)

22 July 2014 No. Both expenditure are of different nature. you can use amount of VAT paid as set off against VAT receivable or claim refund. You cannot setoff against Income tax

Vishnu Saboo

Vishnu Saboo (Expert)

22 July 2014 VAT paid on sales is recovered from customers at actual, so its not ur expense.

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 Sir my query is can i treat it as expenditure. under income tax

Vishnu Saboo

Vishnu Saboo (Expert)

23 July 2014 r u showing sales tax received from customers as income? if you not showing it as income no question of expenditure for paid sales tax.
also i never seen this practice that sales tax received in income and paid in expense.

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