11 March 2013
In retail shop, purchases not shown in their books of a/c. But they did a sales. Not done a proper entries against the purchases for the year of 11-12. The monthly sales return, annual return has been submitted.The b/s sheet showing extreme profit. The accountant ignorance the purchases entries not done properly. Is there any other way to reduce the profit. We can increase the expenses to the some extend.
11 March 2013
Decreasing of profit by way of expenses is big issue so i have an idea by this idea the assessee has to forget about his vat tax input credit on such sum of purchases.
My idea is the mistake is taken place in purchases and we wrongly disclosed short purchases to the sales tax department i.e we short claimed input credit of vat so forget and loose the vat input credit so for the looser to us and benefit to department it will never ask question as well as assessee paying vat tax at the time of sale so department will never question and the assessee doesn't make any fraud or evasion of tax and in addition he loose tax credit benefit.
So my suggestion now record such purchases in your books of accounts by adjusting where ever required and disclose it as closing stock. If at any time department will ask you then told unfortunatelly we forget the purchases to disclose in the vat returns and we find this after the expire of due date to file revise returns so we didn't make it and doesn't noticed you as well as we disclosing it as closing stock and paying vat tax at the time of sale as well as we loose the vat input credit (i.e we doesn't claim input tax credit) on such purchases now if you have any objection then please add this purchases to my return by passing revised returns and allow input credit it will be benefit to me. It will not make a problem to you.
There is another reason to say the above suggestion because of this purchase is public purchase i.e purchased through TIN no and through Way bill so it is public and if any future it found by the department and we not disclosed in our books then we committed it as fraud and department will ask you pay vat tax on such amount as well as penalty as assuming we sold such goods in without(i.e not public sale) as well as at that time it doesn't allow the input credit on such goods.
The above suggestion is making assuming the assessee is VAT dealer if he is not a vat dealer and TOT dealer then please specify me it may be give difference to my idea and explanation.
So please think about the logic of my explanation and as well as problems facing in future and take decision.
13 March 2013
For the TOT dealer also same suggestion but only one thing is Audit of TOT is very very very rare case and such information may not be notice or didn't be consider seriously by the Department. And the main benefit of TOT dealer is we need not to submit our purchases details to the department then no question of short purchases in sales tax returns and department doesn't consider the purchases of TOT dealer for the purpose of returns.
So if the dealer is TOT then no problem will arise and you need not to be worry about the short purchases just now adjust the books at the dates where purchases not entered.
13 March 2013
In one word in case of TOT dealer then there is no problem due to the short purchases because of for TOT dealer doesn't disclose his purchases to the department. so no problem will arise adjust books with the short purchases.
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