Vat on sales and purchases
This query is : Resolved
B.CHANDRA SEKHAR
(Querist)
19 August 2013
with regard to the tax audit, whether vat on sales and purchases need to be shown in profit and loss account.
CA UMESH DULAL
(Expert)
19 August 2013
Net effect of VAT payable (input is less than output vat) or VAT refundable (i.e. if you input vat is greater than out put vat)should be shown in b/s
as vat input and output are not items of purchase/sale it has to be routed through the b/s
As far as tax computation is concern, add the output vat to sales and deduct the total vat paid on or before the due date.
To sum, if the person has not paid the vat on or before the due date, add to the outstanding amount to profit for calculating the income from B/P and the amount has be to mentioned in audit report.
as vat input and output are not items of purchase/sale it has to be routed through the b/s
As far as tax computation is concern, add the output vat to sales and deduct the total vat paid on or before the due date.
To sum, if the person has not paid the vat on or before the due date, add to the outstanding amount to profit for calculating the income from B/P and the amount has be to mentioned in audit report.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Ito add credit side of bank
- GSTR9 Annual Return
- Employee secondment
- Applicability of tax on invoice
- Closer of business and itc of capital goods
- Rent agreement of House of deceased person
- Rectification under processing even after 6 months cpc portal
- Gift to nri relatives resides in usa
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
