Valuation of closing stock

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Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2013 I Want to know ,
whether vat is includable in valuation of closing stock? plz clrfy my doubt

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 No. the VAT is not included.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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21 September 2013 Vat is an refundable Tax, it won't be included in the cost of the stock...

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Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2013 Thank u,
But Sec 145A of income tax saying , while calculating value of purchases, sales and inventories we should consider the any tax paid .

Plz let me know.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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24 September 2013 Such tax which can not be refunded will the the part of the closing stock...
Taxes like Octroi and local taxes will be the part closing Stock..

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2013 Thank u.

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