VAT TAX PAID UNDER COMPOSITION SCHEME

This query is : Resolved

Gaurav (Querist)
Follow

18 January 2010 Hi,

In case Assesses paid VAT tax under composition scheme, Is he eligible to claim deduction under income tax act for computation of taxable income?

CA Deepak P. Agrawal

CA Deepak P. Agrawal (Expert)
Follow

18 January 2010 In case you are recording your sale and purchase inclusive of tax then you can claim deduction of tax paid under IT Act.
Regards,

Gaurav

Gaurav (Querist)
Follow

19 January 2010 In case of Composition Scheme sale and purchase is recorded iclusive of tax only. Right?

One more thing in which Category it will fall under Profit & Loss A/c?

Upgrade to CAclubindia Pro. Subscribe Now!

CA Deepak P. Agrawal

CA Deepak P. Agrawal (Expert)
Follow

19 January 2010 Yes.
It will fall under indirect expenses and account head shall be VAT Tax Paid A/c.
Regards

Gaurav

Gaurav (Querist)
Follow

19 January 2010 Thanks...