Hi,
We have started online selling business soon. The total Purchase Bills we have around 1,00.000 and we sold that items at VAT 6.05% for 1,40,000. The actual profit we made is only around 10,000 after deducting all the expenses of logistics etc. Our accountant told that we must have bills of 1,40,000 to make the Gross Profit genuine. I asked him that we should pay the tax of profit but he said stock is negative if we don't have bills of value 1,40,000. Is accountant right?
P.S. we are new in business which is taxable, our accountant is only practised account but he is not educated in the field.
CAclubindia
