Tax Audit U/s 44AB (Sec. 145A)

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I have doubt about application of Section 145A in case of VAT NOT included in the Figures of  Sales and Purchase. As the said Section requires Gross Amount of Purchase And sales Including Tax, Cess and Duty if any, In case the Financial Statements has been prepared on the Net Basis a Separate Statement is Required to be attached to The Report U/s 44AB(As per guiding note issued by ICAI).

 

The Client covered under VAT has prepared his accounts on Net BASIS (i.e. Sales and Purchase Net of VAT).

Do I need to prepare a SEPARATE Statement to make the Sales and Purchase GROSS and show its result on GP/NP. What should be the form of such statement to comply with 145A.

 

Thanks.

Replies (5)

NO SERATE STATEMENT KIND BUT PREPARE THE P AND L AFTER INCLUDING TAXES IN SALE AND PURCHASE IN AUDIT REPORT ALSO IN 3CD THERE ARE MANY PLACES WHERE TAXES PAID TO GOVT HAS TO BE MENTIONED.

Thak you

N Mehta

But the P/L Has been Prepared by Client i am not going to prepare it.  Our duty is to Audit and Report, so whethe Report in this case is coplite without such statement. as the ICAI has already specified such statement in case of Excise..?


 

no nothing that sought of you have to be just careful while filling the return you have to club tax and sale purchase figures if you remember seperate lines are provided for sale and taxes paid to govt in retun so there you have to make changes

Do we required to get tax audit report if sales are  58 lacs ( Net)  and vat amt  is 4 lacs. If we show VAT Amount collected from debtors as our liabilty . Then is it required audit u/s 44AB ?

plz i need a reply desperately

 

Dear Hardev

as per Section 145A you should club the amount of sales and sales tax (VAT) to arrive at the turnover for tax audit.

 

in present case i would suggest to get the accounts audited even when according to your accounting practice of showing the VAT different as LIAB. your turnover is less than 60L


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