Sales return should be reduced from Total turnover for VAT Audit? - Professionals - GST - TIK Share
0 Likes 264 Views

Sales return should be reduced from Total turnover for VAT Audit?


Rahul Rai

2014-12-23

Hi please provide you valuable suggestions regarding the following issue:

One of the client has made a total sales of Rs. 1.05 crores but has sales return of 10 lakhs.  Is he liable for VAT Audit under Karntaka Vat Act?

Whether sales returns should be deducted to arrive at total turnover for VAT Audit?

SANJAY KUMAR GANNA

2014-12-29

TOTAL Turnover shall be looked from Gross perspective and for VAT Audit compliances sales return shall not be deducted and The Assessee will fall in the ambit of VAT AUDIT.

VAT100 in Karnataka shows a coloumn of Turnover Local and CST you shall total for all 12 months and if it is more than 1 crore then VAT audit is compulsory.

One more practical aspect, an example as below:

The Sales for each month is Rs. 8,35,000 per month and total Rs. 1,00,20,000.

Case 1. There is sales return of 25,000 in July month which was sold in June

 Case 2. There is Sales return sold in july and returned in July.

In case 1 VAT AUDIT is Applicable

In case 2 no VAT Audit is required.

Reply

Rahul Rai

2014-12-29

Turnover is inclusive of Tax?

Suppose Sales 90 Lakhs and VAt is 15 lakhs. In this case VAT audit is applicable?

Reply

SANJAY KUMAR GANNA

2014-12-29

I completly agree with Rahul Rai.

As In VAT 100 Total Turnover is computed by taking into consideration Output VAT

Reply