07 May 2011
if my sales excl of vat are 39,00,000 and vat colleced is 2,93,000, so total sales incl of vat is rs 41,93,000, then am I liable for mvat audit or income tax audit. Vat amt & sales are both shown seperately and bifurcated at time of purchase and sales.
Confusion is : whether in defination of sales (it includes vat or excludes it ?)
someone told that in mvat sales is considered as sales + vat, therefore I am liable to mvat audit.
But in income tax defination of sales is only sales excluding of vat collected, so I am not liable to income tax audit.
07 May 2011
Even in case of Income Tax the turnover is inclusive of all the taxes so collected. The turnover is based on the Gross Sales Price received from the customer. So, in this case, you are liable for both, MVAT Audit as well as Income Tax Audit.
CAclubindia
