I would like to know if a retailer show his income under Section 44 AF and does not maintain any record, his total receipt does not exceed rs. 40 Lacs in the previous year and he shows 5% profit. Now my question is, his item is sales taxable and he is required to furnish sales tax returns quarterly then for that purpose what record he should prepaired to keep away the sales tax department and income tax department.
27 December 2007
The two statues are different and for the purpose of Income-tax , if you declare 5% as your net profit , there is no requirement of maintenance of accounts. In the other hand , VAT/ST is a different statute and for compliance of such laws you may have to maintain books such as Sales / Purchase Register and Sales Invoices. It looks peculiar but this is our Indian System of taxation.
27 December 2007
I AGREE WITH SRI. SRIDHAR. THE REQUIREMENT UNDER IT ACT AND VAT ARE DIFFERENT. AS PER IT FOR A 5 % NETPROFIT DECLARED BY THE ASSESSEE ,NO NEED TO MAINTAIN BOOKS ,WHERE AS VAT NEEDS MAINTENANCE OF INVOICES FOR SALES, OR BILL BOOKS APART FROM PURCHASE AND SALES REGISTERS. R.V.RAO
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