Gross or net

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2012 Dear Expert,

pls tell me how should I present Profit & loss account as per Sch. VI...

Revenue from operations Gross :

1.should I add Vat amount on sales of goods made or it should be net of Vat... as vat is not revenue for us.

2.Same in case of Revenue from Services ... Amount of service tax to excluded or not.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

13 July 2012 VAT and service tax amount payable to authorities does not come in profit & Loss Statement.
VAT & ST can never be shown in revenue from operations.
Only Excise duty is shown and that is also for the purpose of disclosure.

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

13 July 2012 Revised schedule VI as well as AS-9 is silent on the above issues. Therefore, relying on the "Guidance Note on Accounting for State level VAT", segregation of VAT from sales and making net presentation of sale of goods is suggested.
Same analogy is preferred for SERVICE TAX.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!