Pls help
If some firm is not registered under Dvat or Sales Tax. & it purchases a computer & receives a tax invoice mentioning Vat amt. Rs. 2500. Will this amt be capitalised or charged to P & L A/c?
If we charge it to P &L A/c, then what r its implication for tax audit report (Form 3 CD)
Will we do the same treatment if v receive the retail invoice?
Thanks in Advance
Shikha
Dear Shikha
If the firm does not have output VAT purchase output should be capitalized and cannot be charged to P & L since the computers are also capitalized.
Hope this helps.
Regards
Sahana Murthy.
Varma Raja & Associates
Thrissur
CA Inter
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M N Rao & Associates LLP
Vijayawada
CA Inter
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CCI
Pro
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