Balance Sheet for the Wholesaler
There is no specific turnover limit for drafting a balance sheet for the wholesaler in India.
However, the Income Tax Act, 1961 requires all taxpayers with a turnover of more than ₹25 lakhs to maintain books of accounts and prepare financial statements, including a balance sheet.
The turnover limit could base on the total value of goods sold or services rendered during the financial year.
If the turnover of a wholesaler is more than ₹25 lakhs.
They can requir to maintain books of accounts and prepare financial statements.
Including a balance sheet, even if they are not registered under the Goods and Services Tax (GST) Act.
If the turnover of a wholesaler is less than ₹25 lakhs
They can not requir to maintain books of accounts or prepare financial statements, including a balance sheet.
However, it is still advisable for wholesalers to maintain books of accounts and prepare financial statements, even if they can not requir to do so by law.
This is because it can help them to track the financial performance of their business and to make informed business decisions.
Here are some of the benefits of maintaining books of accounts and preparing financial statements, including a balance sheet, for wholesalers:
- It always provides a snapshot of the financial position of the business at a specific point in time.
- It helps to identify any areas where the business could overleveraged or undercapitalized.
- It can be used to assess the financial health of the business and to make informed business decisions.
- It is mandatory by law for most businesses.
- It could used to attract investors or lenders.
- It could used to track the financial performance of the business over time.
Overall, maintaining books of accounts and preparing financial statements, including a balance sheet, is an important part of sound financial management for wholesalers.
It can help businesses to identify any potential problems, make informed decisions, and attract investors or lenders.”
To visit: https://www.incometax.gov.in
For further details access our website: https://vibrantfinserv.com
