AUDIT OF ACCOUNTS

Others 550 views 2 replies

 

Pls. clarify, whether sales tax/vat is added to total turnover for calculating the limit of gross receipt of Rs. 40 lacs. For example assume total sales excluding vat is Rs. 3900000/-. VAT is Rs. 150000/-. The assessee shows sales net of sales tax in trading account i.e.at Rs. 3900000/-. Is he required to get the accounts audited.
 
Replies (2)

In the above example the accounts need not be audited it does not come under TAX audit. Turnover should cross Rs.40 lacs i.e sales without VAT. Output VAT comes in Duties & Taxes as a liability and not under P/L Account. Due dt of filing return will be 31st July 2010.

There is no need for Tax audit in this case

 

bcoz all the refundable or adjusted tax are not inclued in the means of the Gross Recepit or Gross turnover


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