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Schedule VI of the Companies Act

rachanna (CA Student) (70 Points)

01 September 2008

Hi Friends,

Do we need show Income from Sale of Goods or Services as exports and indigenous for Schedule VI Presentation.

Thanks

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8 Replies

NIKUNJ RATHI (C.A) (56 Points)
Replied 01 September 2008

Please refer Schedule VI Part II Clause no. 3(i)(a) and Clause NO. 4D (e).

In the preparation of financial statements we have to see that material features are disclosed.

Nikunj Rathi

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Rajesh (Service) (181 Points)
Replied 01 September 2008

Schedule II quite clear about it.

rachanna (CA Student) (70 Points)
Replied 01 September 2008

hey thanks

Mr. Rathi & Mr. Rajesh

(Guest)

Originally posted by :rachanna
"	Hi Friends, Do we need show Income from Sale of Goods or Services as exports and indigenous for Schedule VI Presentation. Thanks	"

Abid Ali (Tax Consultant) (96 Points)
Replied 28 September 2008

Dear Nikunj,

I want to ask that as per Schedule VI Part II, whether the aggregate sales must include the Excise Duty or not ?

Means as we know that the excise duty is our liability and I want to put the Excise Duty under Duties & taxes (Current Liability) then at the time of preparing P & L A/c, whether I ahve to Grossup the sales or not.

Means my entry is like :-

Party A/c (under Sundry Drs.) Dr. xxxxxx

Sales A/c (under Sales / Revenue) Cr. xxxxxx

Excise duty A/c (under Duties & Taxes, C.L. ) Cr. xxxxxx

C.S.T. A/c (under Duties & Taxes, C.L. ) Cr. xxxxxx

Is the entry and A/c Groups are correct or not ?

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Vrnanda (auditor) (110 Points)
Replied 29 September 2008

Hi Aabid Hashmi,

answer to you question would be as follows:

a) we need to show the sales after deducting the excise duty from the invoiced sales.

b) as you have correctly said, excise duty is the liability of the company and it is always deducted from the amount of sales as it inflates the sales amount.

Abid Ali (Tax Consultant) (96 Points)
Replied 29 September 2008

Dear All,

I do not mean to ask that we have to show the sales after deducting Excise.
I want to know as per Schedule VI part II, whether the sales should be shown as gross and then deduct the Excise to make it net OR we can show net sales directly ?