I want to know whether VAT on sales (Output VAT) and Service Tax collected will be included in Turnover for the purposes of Tax Audit u/s 44AB?
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Turnover for tax audit
Replies (8)
First you have to know this. You are collecting the Output Sales tax and Service Tax money from your Customer / Service Receiver on behalf of the Statutory Department. Its a kind of liability, you have to pay / adjust with the Statatuory pre payments made like Input Sales tax paid / Service tax Input. So You are not eligible declared those collected amount as your income or include in your turn over.
So you can calculate the Turnover ommitting the statutory payments collected / Raised.
output vat and s.tax are excluded for calculation of turover and also when you are preparing your books then you will never find these taxes included in your sales a/c...
Dear all
I think Output tax & Service tax is not of part of Income. So can't added in Turnover in any bussiness.
Thanks & Regard
Ramanuj
As per MANI v reply its true and no doubt its good reply as well as also highlighted why it not be income. Its a liability after adjust with Input sales Tax/Input service tax.
So, generally its b/S item.
Mr. Adtiya Singh I think your reply against this topic after MANI v reply not required, so don't be confused others or assume they are poor learner.
EDUCATION IS CONTINUE PROCESS WHEN WE BIRTH AND IT WILL CONTINUE UNTIL WE DIE.
it`s true that it cannot become the part of turnover but you cannot say that it is a balance sheet item. you have two option
- With the route of profit and loss account
- With the route of balance sheet as explained by mr maharaj
@ maharaj.. who says i am confusing others or i think they are a poor leaner?????.... ... it was just my way to answer query.. and even i know that answer by mani v is better than mine and i havent ques. it also nor i said my answer was better..
Yes, Out put vat will be included into sales as well as Input vat will be included into purchase for determination of ciling limit of tax audit.
Everyone has replied that it has to be excluded except Mr.Rajesh Thakker.
So what it is the final point friends?
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