Sir, 

If the opening stock is undervalued by.Rs. 22 lakhs.   and some of his commodities are not added in commodity list.  What will be the penalty as per KVAT law.

my client is  received notice from VAT office to pay 14.5% tax on 22 lakhs which will be around 3 lakhs and also penalty for commodities not added in the list.

Thanking you, 

Vat

Posted 1 year, 11 months ago by Manjula Navale


 

Sir,

the client trading account is showing 56 lakh closing stock on 31-3-2015  and showing opening stock 34 lakh on 1-4-2015.

Thus the opening stock is undervalued by.Rs. 22 lakhs.   and some of his commodities are not added in commodity list.  What will be the penalty as per KVAT law.

my client is  received notice from VAT office to pay 14.5% tax on 22 lakhs which will be around 3 lakhs and also penalty for commodities not added in the list.

Thanking you, 

 

 

Posted 1 year, 11 months ago by Manjula Navale


As per Karnataka VAT Act, you cannot sell below purchase price. If you are selling below purchase price, you need to reverse the input credit on discounted price.

Same is applicable for stock. If any stock is unsold or devaluation, you need to reverse the input credit on purchase.

Check the rate at which goods were purchase, if it 14.5% than department is correct in doing so.

Posted 1 year, 11 months ago by Rahul Rai


Thank you sir for your reply,

And what if commodities  are not added in commodity list.  What will be the penalty?

 

Posted 1 year, 11 months ago by Manjula Navale


Your Reply:

You need to be logged in to reply.