I want to know whether VAT on sales (Output VAT) and Service Tax collected will be included in Turnover for the purposes of Tax Audit u/s 44AB?
Meera Shanker (Student) (70 Points)
13 August 2014I want to know whether VAT on sales (Output VAT) and Service Tax collected will be included in Turnover for the purposes of Tax Audit u/s 44AB?
Mani.V
(C.E.O)
(81 Points)
Replied 13 August 2014
First you have to know this. You are collecting the Output Sales tax and Service Tax money from your Customer / Service Receiver on behalf of the Statutory Department. Its a kind of liability, you have to pay / adjust with the Statatuory pre payments made like Input Sales tax paid / Service tax Input. So You are not eligible declared those collected amount as your income or include in your turn over.
So you can calculate the Turnover ommitting the statutory payments collected / Raised.
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 13 August 2014
Ramanuj
(Accountant.)
(834 Points)
Replied 14 August 2014
Dear all
I think Output tax & Service tax is not of part of Income. So can't added in Turnover in any bussiness.
Thanks & Regard
Ramanuj
maharaj
(accountant)
(165 Points)
Replied 14 August 2014
Rahul Giri
((CMA CPFA U.K. IIA-India BI Consultants ))
(37 Points)
Replied 14 August 2014
it`s true that it cannot become the part of turnover but you cannot say that it is a balance sheet item. you have two option
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 14 August 2014
Rajesh Thakker
(Taxation Advocate)
(32 Points)
Replied 14 August 2014
Yes, Out put vat will be included into sales as well as Input vat will be included into purchase for determination of ciling limit of tax audit.
Meera Shanker
(Student)
(70 Points)
Replied 16 August 2015
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