Tax audit

A.Y. 2011-12

sales         : 52,00,000/- (52 lac)

vat 12.5% :    6,50,000/- (6.5 lac)

Freight      :    3,25,000/- (3.25 lac)

Tota salesl T/O   : 61,75,000/- (61.75 Lac)

 

Q1:  will Freight  form part of TAX AUDIT turnover.

Q2:  While filing MVAT Returns Form-231, the Gross turn over of sale will include the freight amount also?

Thank you.

 

 

 

Replies (5)

Answer of Q1: It is not cover under tax audit because Freight is not part of Sales Turnover, but it is direct expenses

Answe of Q2: If  your sale is local sales then freight must be come before vat on invoice and therefore vat will also be calculated on Freight. Therefore in form 231 not only gross turnover but also net sales @ 12.5% also included freight.

(1) Yes,

(2) Yes,

1) YES

 

2) YES

1.Freight incurred by the seller is  not the part of turnover(as per meaning of turnover u/s 44AB).

Mr. Sandeep-Freight  incurred by the seller  is in the nature of carriage outward i.e Indirect Exp. , therefore it will be charged  to P/L A/c not as Direct Exp. in TradingA/c.

Agree with SANDEEP ......

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