we are trading in led bulbs and in 2016 we imported some decorative bulbs from China amounting 20 lakhs but due to some reasons our accountant recorded it for 8 lakhs and the same were submitted in KVAT returns. However the sales tax department intimated us regarding the undervaluation of goods purchased as per records of customs and considered the undisclosed purchase deemed to be sold applying 35% gp rate and applied 14.5% tax rate as the liability and penalty thereafter. However we filed an appeal and assessment is going on
The physical stock is still lying with us and is there any restriction to sell the same stock in the normal course of our business?
can we show the stock in our books as it is deemed to be sold by law?
CAclubindia
