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Tax audit

john (LEARNER) (549 Points)

29 October 2011

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.

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5 Replies

C.A. Sandeep Wawhal (Chartered Accountant PGDFM BCom.) (1823 Points)
Replied 29 October 2011

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 Like

CA Hardik Bunha (self) (2121 Points)
Replied 29 October 2011

(1) Yes,

(2) Yes,

1 Like

MITU.... (ARTICLE Assistant) (210 Points)
Replied 29 October 2011

1) YES

2) YES

Pulkesh Mehta (Chartered Accountant) (243 Points)
Replied 30 October 2011

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.