Whether Excise duty is included in Valuation of Closing Stock or not? Actually As per Guidance note on Excise Duty by ICAI, it is included. In Guidance note on Tax Audit u/s 44AB, there are inclusive and exclusive method for Valuation of Closing Stock. But There are some Case laws that exclude excise duty in valuation of Stock.
Please kindly provide clear cut Answer.
Thank you....
excise duty is included in the Closing Stock
For the purpose of Revised schedule VI (even in schedule VI) you should show closing stocks with the value inclusive of Excise duty.
And for the purpose of Tax audit (refer section 145A of income tax act) this Excise duty inclusive/ Exclusive things are done just to prove that even if we add Duties and taxes in our stocks, it will not have any impact in our profit as per Income tax act.
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