TaxTMI 
TaxTMI 
A is a direct seller as well as sells goods on consignment is consignment sales to be included as total sales in A's books of accounts and is it liable for vat, and is it to be considered as turnover for purpose of tax audit under income tax
Liability of vat - consignment sale
19 May 2009 
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Consignment sales treated as taxable turnover and subject to VAT; included in turnover for income tax audit purposes.
Consignment sales are trading transactions that must be included in total sales and treated as turnover for income tax audit purposes; maintain a separate consignment trading account and show profit or loss on consignment in the Profit & Loss account. Such consignment transactions are liable to VAT except where government notification specifically excludes the goods from turnover, and interstate documentation may affect central sales tax treatment. (AI Summary)
Consignment sales are trading transactions that must be included in total sales and treated as turnover for income tax audit purposes; maintain a separate consignment trading account and show profit or loss on consignment in the Profit & Loss account. Such consignment transactions are liable to VAT except where government notification specifically excludes the goods from turnover, and interstate documentation may affect central sales tax treatment. (AI Summary)