Latest on Our Blog

4 thoughts on “Latest on Our Blog

  1. Sir,
    Regarding Value added Tax-In PL account my clients total purchase is 60 laks and his sales is 40 lakhs (he has stock also say Rs.20 lakhs ).
    whether he is liable for audit(audit limit is 60 lakh of total turnover)..?because “Turnover” means the aggregate amount for which goods are either “bought” or sold(definition is same in many state VAT Acts),…… and in this case his turnover is 60+40=100 lakhs. is it correct..?pls explain.

    If he is not liable(ie turn over took as 40 Lakhs) please tell me what is the meaning of word “bought” in the definition..

    and whether purchase of goods bought would be considered as turnover in any other context along with sales .
    Please help me with any case law if there..Definition of turnover is same with some other state VAT Act also.

    1. The definition of turnover doesnt include purchase as per my knowledge in most of the VAT acts. The Karnataka VAT for sure doesnt include the word purchase but the words used are deliver, sale etc. Hence in my opinion the example you have quoted shall not be liable for getting its books audited.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s