06 August 2008
Dear Sir, A Prop firm raised supplementary invoices in the month of april may 2008, for increase in the prices of steels, the original sales were made in the financial year 2007-2008. My query is whether we can make provision for income related to supplementary invoices in the financial year 2007-08. what is the tax implications whether this income is taxable in the ass. year 2008-09 or in nxt assessement year. As per accounting standards issued by ICAI AS -4 it is an event occuring after the balance sheet date according to that we have to make adjustments in assets and liablilites in the balance sheet for the f.y. 2007-08. Please resolve my query it ll highly obliged 1. can v make changes in assets & liabilities in the balance sheet as at 31.03.2008 if yes should we make provision for excise receivable as well as per AS-4 2. what are the tax implications whether this income will be taxable in ass. year 2008-09 as per mercantile system of accounting u/s 145 3. can there be any implications under punjab vat act. Thanks & Regards CA Rajpreet Singh 2.
06 August 2008
1.Yes. 2.The tax implication is in the year you are accounting. 3.Generally VAT is payable when you actually raise the invoice. Check up Punjab VAT.
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