Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How should one treat the closing stock for which tax is not paid as till now tax was being paid only on sale?

April 26, 2017closing paid stock tax till treat

0

Posted

How should one treat the closing stock for which tax is not paid as till now tax was being paid only on sale?

1 Answer

0

Posted

No special treatment is needed for tax payable when the closing stock on hand is sold in the subsequent period. Sales tax (VAT) needs to be recognised only when a sale takes place or a bank transfer takes place out of a State.