Mayank Kapoor (.) (159 Points)
29 July 2010Hi
I am facing a problem while filling the Income tax return.
An Assessee has an Opening stock of Rs 1 Crore. His purchases for the year amounts to Rs 10 Lacs.
His Purchase return is Rs 70 lacs ( of the opening stock) . How should I show the Purchase return in the Income Tax form ?
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 29 July 2010
Just reduce the Purchases by that amount. It does not matter whether its from opening stock or current purchases. You can show it as net purchases.
Mayank Kapoor
(.)
(159 Points)
Replied 29 July 2010
| Originally posted by : CA.Tarun Maheshwari | ||
 |
Just reduce the Purchases by that amount. It does not matter whether its from opening stock or current purchases. You can show it as net purchases. |
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But the Purchases will be negative and the ITR does not accept negative values for purchases.
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 29 July 2010
In that case, better option is that you show it as net consumption (Opening + purchase-Purchase return-Closing stock). Than it will be entered easily.
Mayank Kapoor
(.)
(159 Points)
Replied 29 July 2010
Someone told me to enter the value in other expenses but it is not an expense.
CA. BIJENDER KR. BANSAL
(ACA, B.COM)
(8148 Points)
Replied 29 July 2010
in FORM 4 THERE IS NO FIELD TO FILL UP NET CONSUMPTION. HERE OPENING STOCK, PURCHASE AND CLOSING STOCK IS TO FILLED.
NEGATIVE PURCAHSE , ITR IS NOT TAKEN.
HENCE IT IS BETTER TO INCLUDE PURCHASE RETURN IN SALES, BECASUE PURCHASE RETURN IS MADE BY ISSUING OF SALE INVOICE , YOU CAN SHOW IT SALES AS SUCH.
THIS IS ONLY WAY BY WHICH YOU CAN FILL YOUR DATA AND GET CORRECT RESULTS.
Mayank Kapoor
(.)
(159 Points)
Replied 29 July 2010
I guess this could be done. I do not see any other way of entering the data.
CAclubindia
