Vat refund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2013 If suppose the Net Profit of Company/Firm is Rs.10,00,000/- (Rs.Ten Lacs) & the VAT refund amount is Rs.5,00,000/- (Rs.Five Lacs) then on which amount the Income Tax should be calculated ?

The VAT refund amount is shown in the Balance Sheet (Assets).

Is the VAT refund amount income for the Company or Firm as per the Income Tax Act ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 February 2013 VAT REFUND if meant by the amount standing as Receivable under the VAT A/c then you have to pay tax on the amount of Net Profit as being shown in P&L A/c. However, care must be taken of Section 145A.

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