Prashanth (Chartered Accountant) (2322 Points)
05 September 2011Hi all,
a)A firm is following exclusive method(i.e. excise and vat is not included sales turnover),now can a tax auditor consider or add back excise and vat to the sales for calculation of turnover criteria 60 lacs for the purpose of tax audit?
b)Whether a firm has choice of following inclusive or exclusive method?
c)Can a tax auditor can add back excise to the sales irrespective of the the inclusive or excluisve method followed by the entity?
CS Bijoy
(Expert)
(6394 Points)
Replied 14 September 2011
Section 44Ab AD AE and AF will not be applicable as per the accounting method followed by the firm, it will be applicable as per the definition of turnover given by the Act.
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