Income tax profit and loss

sir composition delear sales in profit and loss account, we have take including tax or exclusive tax.
Replies (6)
Quick Summary
This discussion clarifies how to handle tax within a profit and loss account, particularly for composition dealers. The consensus is that sales should be recorded exclusive of tax, while purchases, being a direct cost, should be inclusive of tax as it's often non-recoverable.

Exclusive of tax
Exclusive
Purchase
Purchasws also exclusive of Taxes

Being cost over purchase, should be inclusive. (being non recoverable directly)

Thanks for the information

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