VAT collected but not paid is to be added to income even if amount has not routed through P&L Account

VAT collected by the assessee was in respect of traded goods dealt in by the assessee and in view of the provisions of section 145A of the Act, the value of the VAT was to be included as part of sale consideration of the traded goods and once the same is to be included as part of the sale goods, the same has to be routed through Profit & Loss Account. In case, the assessee pays the VAT amount within accounting period or before the due date of filing the return of income, no addition is to be made in the hands of the assessee as the amount collected on one ha

Please become a Premium member. If you are already a Premium member, login here to access the full content.