Atharv Sankliya (1354 Points)
24 October 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 October 2021
No! Only before you file income tax, they will check your financial statements through auditor. Tax department doesnt have staff to check every company records. If they have any doubt, then they will check it.
Atharv Sankliya
(1354 Points)
Replied 24 October 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 October 2021
Not necessarily. Both cash and credit sales will be reducing the profits. The tax is applied on them, meantime there is deferred taxes For example, money due on a current receivable account cannot be taxed until collection is actually made, but the sale needs to be reported in the current period. Because these differences are temporary, and a company expects to settle its tax liability (and pay increased taxes) in the future, it records a deferred tax liability. Tax authorities will cross check with your financial statements only/
Atharv Sankliya
(1354 Points)
Replied 24 October 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 October 2021
No. only incase of fraud
Janak Shah
(ca)
(603 Points)
Replied 25 October 2021
CAclubindia
