A dealer charges some amount in his sales bills after charging the VAT without mentioning any reason like freight/octroi/packing & forwarding/commission, etc.
Can this amount is chargeable under VAT ? On what basis the VAT is chargeable as there is no clearity on the nature of the amount charged by the seller.
Is Income Tax TDS is applicable on the said extra amount. If applicable, on what basis it is to be deducted and under which section ?
This adjustment is made by the said dealer to add the interest on overdue interst on the previous bills but not mentioned on the bill. He want to mention it, as it will be treated as 100% income in the books of the seller and Income Tax will be chargeable at higher rate considering the other income.
Pl.reply
CAclubindia
