04 November 2010
Dear Experts, I hv the following query:
1) Why the Excise duty is shown seperately after deducting the same from the sales in the balance sheet? 2) How to arrive at the figure of turnover for tax audit, i..e, are the portion of excise duty, vat , service tax all inclusive of the same or wht are their exact treatment? 3) Suppose a Chartered firm bills an amount of Rs. 110300/- as audit fees income including service tax. So how can he account the same in the turover?
04 November 2010
1.Excise duty is a indirect tax levied on manufactured of excisable goods in India. Excise duty is not a income to anybody, as this amount goes to the credit of government.As for as your question of showing it / reducing it from the sales turnover in Profit & loss account is disclosure requirement of the Institute. 2. Excise duty, VAT & Service Tax are generally shown under current liabilities & not credited to profit & loss account. IF in the method of accounting (U/s145A of Inocme Tax Act 1961)is credited to P&L it shall be included in the turnover for the purpose of Sec 44AB audit. 3.If you are liablie for excise duty or service tax, then you can claim the input credit of the Service tax pain on the CA fee.The gross receipt is only Rs.100000/- & the amount of Rs.10300/- would be shown as output liability by him.
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