- All Categories
- Income Tax (1614)
- Students (768)
- Service Tax (497)
- Corporate Law (462)
- Audit (393)
- Accounts (336)
- VAT (277)
- GST (136)
- Excise (106)
- Finance (104)
- Banking (46)
- FEMA (40)
- Custom (29)
- Shares & Stock (18)
- IFRS (17)
- Income Tax Software (4)
- Cost Inflation Index (1)
Recent
- Test
- 26QB Challan
- Cash amount deposit in bank account as on dt:31-03-24
- branch statutory Audit
- Tax Liability on payment of Gratuity
- Using the work orders of another entity
- Capitalisation of Assets in case of housing society
- GSTR 9 ITC Reversal
- Reissue Refund of Closed Partnership Firm
- section 43B(h)
- TCS os sale of Fly Ash
- Limit of cash on hand sec 44ad person
- STATUTORY AUDIT
- Long term capital gain
- Un secured loans hug amount sec 68 provision applicable
- Resume Upload
- Cash balance increased options
- FOREX FFMC GSTR-1
- missing turnover show in next quater or drc-03 pay correct procedure
- Banking
- Gift transactions from relatives allowed different dates
- TALLY EXCEL IMPORT
- Income Tax
- Empanelment ewnewal fees
- Tax Audit in case of Pvt. Ltd. Company
- ITC from ISD wrongly reflecting in System generated annual GSTR 3B
- Pf and esi subscription amounts late payments claim eligible and provision compulsory
- GST Applicability
- Loans credit and debit adjustment entry allowed in it act
- Tax audit or itr-3 filed f.y.22-23
- Gst returns nil filed cash deposit in bank account
- Cash limit question
- TDS
- Income from AIF Mutual Fund-Under Section-115UA & 115UB.
- Income Tax
- Audit
- audit
- Income Tax
- TDS on provision of audit fees
- Business loan from bank how much amount available
Q. > Please Help: INCOME TAX TREATMENT ON STOCK VARIATION IN VAT SURVEY
Dear Sir,
M/s XYZ is a Partnership Firm.
During Previous Year, an Enforcement Survey was done by the Vat Authority.
They found that there was variation in Stock and Cash. The Physical Stock verified by them was lower than the Stock Ledger as per book.
Due to Stock Variation, they took the variance in stock as Undisclosed Sales, and also charged VAT (+Penalty) on the Undisclosed Sales.
They treated it as Sale without Bill and charged Tax accordingly and also 20% Penalty on the Tax Amount. Similarly, they charged VAT (+Penalty) on Variance in Cash.
Now, the problem is regarding Income Tax Treatment of the Stock Variation, VAT & Penalty.
Am I Right? If,I
1. Take Penalty as Revenue Expenditure and Disallowed in 44AB report.
2. Make an entry for Cash Sales for Stock Variation amount.
3. I am afraid, If I show Cash Sales in the Books of Accounts for the Short Stock, Will ITO not Challenge the Books of Accounts.
4. In Sales Tax Quarterly Returns, no effect of VAT Survey has been reflected.
Clarify me Please about the Treatment in XYZ Books for the Above Query for Income Tax Purpose.
Can somebody throw light on my issues that how to treat this concealed Sale and Tax & Penalty in filing Income Tax Return as well as Sale Tax Return.
Thanks in Advance
Experts Panelist
Comments