hi friends,
we got an assignment to certify that the benefits of gst are passed on by our client to their customer .but we are in dilemma as to what audit procedures to be followed to certify the same.
do any one of you have done such sort of assignments . please share your experience and knowledge .
I have not practically done the same but the procedure should be following:
1. Prepare a cost sheet containing details of Input, Input service & Capital items.
2. Determine the cost of goods produced in case of manufacturing concern and cost of service in case of service provider.
3. Now Compare the existing selling price and cost to determine the mark up or profit.
4. Now prepare the cost sheet as per new provision.
5. add the mark up and determine the selling price.
6. Compare the selling price as per old and new provision.
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