VAT on Sales sec 115 BAA of the IT Act

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies whether VAT should be included in gross turnover when calculating tax liability under Section 115 BAA of the Income Tax Act, 1961. The consensus is that VAT, being collected on behalf of the government and not forming part of the Profit & Loss account, is not considered income for this calculation. Therefore, it is not required to be added to gross turnover for the purposes of Section 115BAA.

CA Sudeep Singh

CA Sudeep Singh (Querist)
Follow

05 November 2022 Is it required to add VAT component in gross turnover u/s 115 BAA of the IT Act,1961

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

05 November 2022 No. GST is collected on behalf of Government, as such it is not included in P&L acc. And hence, it is not part of income for calculation of tax liability u/s. 115BAA of IT act.

CA Sudeep Singh

CA Sudeep Singh (Querist)
Follow

05 November 2022 Sir, i want to know whether VAT has to be added in Gross Turnover u/s 115BAA of the IT Act, not asked about the GST treatment

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

05 November 2022 On which item Vat is collected? Isn't it paid back to treasury?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now