Dear Sir / Madam,
I have query related to Financial ratio under MVAT Audit. I wish to know meaning of terms "Net Sales" and "Gross Receipts".
For example: Suppose
Sales 12.5% VAT 12.5% Sales 5% VAT 5% CST sales 2% CST 2% Labour Sales as per P/L
Rs.100 Rs.12.5 Rs.100 Rs.5 Rs.100 Rs. 2 Rs.500 Rs.819.50
In this case what is Net Sales??
Also please explain the meaning of Gross Receipts and how to derive it.
Thanks
Suraj
Suppose if the sale amount is Rs 100 & VAt is 12.5%. then the amount of Rs 100 is termed as Net sale & the amount of Rs.125( Sale+VAT) is termed as Gross sale.
Gross receipts are the receipts inclusive of taxes shown on the Income side of the Incoem&Expenditure account & Gross turnover means the total the toal turnover shown on the income side of teh Trading account.
Well what I interpreted Gross Receipts is the Total Receipts credited to P & L A/c. ie. Sales income and any other income.
Dear Sir,
I need clarification about net sales
| Basic | ED | Cess | VAT | CST | Total |
| 100000 | 12000 | 360 | 0 | 112007.2 | 224367.2 |
Inthis i sold materials total invoice value of Rs. 2,24,367/- (Gross Value)
What is net sales value
CAclubindia
