06 October 2016
Sir I have an query Abc company located in goa supplying organic fertilizer all over india in every state to the warehouse of each state. EG: Abc supplying fertilizer to karnataka warehouse z firm, for supplying goods with same price not any additional price or profit.they will give only commission to the karnataka warehouse z. Warehouse need to distribute materials for whom they got order from abc.. And here suppose Abc given material to Z for rs 100 without c form and z will distribute the same material to anoop but z will collect vat, 95+5 vat =100 That 5rs vat is paid by z to karnataka govt.. After paying vat the same vat is reimbursed by main branch Abc.. Weather that vat reimbursement is income nd that is taxable..!!
06 October 2016
no vat reimbursement is not and income..... sale would be booked @ 95, 5 Rs under output VAT and Reimbursement of Rs 5 will be booked as income.
CAclubindia
