Question ID :
As per ICDS –II the Inventory value should include taxes.
There is a purchase of Rs.1,18,000/- which includes GST of Rs.18000/- which is accounted in Input GST account and carried to Balance Sheet if not utilised on the date of Balance sheet.
In the above situation purchases debit will be only Rs.100000/. But closing stock valuation will be.1,18,000/- including taxes.
As per ICDS the party’s income is artificially booked at Rs.18000/- for purpose of income tax levy.
Is my understanding corect.
If.Yes, how to address this problems
Sep 19 2018 12:00AM