valuation of closing Stock

[sharvan khanna]

As per the IT Act we are adding the excise duty and vat duty paid for bringing the raw-materials within our factory and on the goods manufactured from the Inputs. As such the Clsoing Stock Value goes to include the value of the goods+excise duty+vat/cst.

Then we are showing the balancing figures of CENVAT in our Current Assets sides.

As such, there is the double implication in the Assets side once we adding the C.E. + Vat on the Rawmaterials + Finished Goods and once again the we are showing the balancing figures of the C.E. and Vat under the Current Assets side. So Please suggest what and how we should prepare the Balance Sheet so that there is no double implication of the same.

AI Summary

Valuation of Closing Stock for Tax: Avoiding Double Entry of Excise Duty and VAT in Balance Sheets A user inquired about the valuation of closing stock for income tax purposes, noting that the excise duty and VAT paid on raw materials and manufactured goods are included in the closing stock value. This results in a double implication on the assets side of the balance sheet, as these duties are also shown as balancing figures under current assets. The user sought advice on how to prepare the balance sheet to avoid this double implication. A respondent asked if the issue had been clarified, offering further assistance if needed.