Hi
I am facing a problem while filling the Income tax return.
An Assessee has an Opening stock of Rs 1 Crore. His purchases for the year amounts to Rs 10 Lacs.
His Purchase return is Rs 70 lacs ( of the opening stock) . How should I show the Purchase return in the Income Tax form ?
Just reduce the Purchases by that amount. It does not matter whether its from opening stock or current purchases. You can show it as net purchases.
| Originally posted by : CA.Tarun Maheshwari | ||
 |
Just reduce the Purchases by that amount. It does not matter whether its from opening stock or current purchases. You can show it as net purchases. |
 |
But the Purchases will be negative and the ITR does not accept negative values for purchases.
In that case, better option is that you show it as net consumption (Opening + purchase-Purchase return-Closing stock). Than it will be entered easily.
Someone told me to enter the value in other expenses but it is not an expense.
in FORM 4 THERE IS NO FIELD TO FILL UP NET CONSUMPTION. HERE OPENING STOCK, PURCHASE AND CLOSING STOCK IS TO FILLED.
NEGATIVE PURCAHSE , ITR IS NOT TAKEN.
HENCE IT IS BETTER TO INCLUDE PURCHASE RETURN IN SALES, BECASUE PURCHASE RETURN IS MADE BY ISSUING OF SALE INVOICE , YOU CAN SHOW IT SALES AS SUCH.
THIS IS ONLY WAY BY WHICH YOU CAN FILL YOUR DATA AND GET CORRECT RESULTS.
I guess this could be done. I do not see any other way of entering the data.
CAclubindia
