Accounting

This query is : Resolved

rishab (Querist)
Follow

01 October 2012

Here I am explaining our transaction.

1. We will raise our P.O. to Agent / Dealer (ABC)

2. Agent / Dealer (ABC) will raise P.O. to Manufacturer / Mill (XYZ)

3. Manufacturer / Mill will dispatch the materials to us along with Excise Invoice in our name as per our P.O. Specification Mentioning that " PAYMENT TO BE MADE BY " M/s Agent / Dealer (ABC)

Our Doubts are

1. To whom we have to make payment? to Manufacturer / Mill (ZYZ) or to Agent / Dealer (ABC)

2. If we paid to Agent / Dealer (ABC) is there any problem ? from any of the department ( Income Tax, or Sales Tax (VAT) or any) or from manufacturer / mill (XYZ)

How we have to account it in our books of accounts ?

1. Purchase from manufacturer's name Since Bill will be in his name (Ledger will be in manufacturer;s Name)

2. While making payment shall we create a ledger in the name of Agent / Dealer or we should show payment entry to Manufacturer by narrating that paid to Agent (ABC) on behalf of Manufacturer (XYZ)

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

01 October 2012 you are appointed agent for the whole transaction, it seems. So you need to do the business with AGENT. Tally has facility to have sub ledger under the main ledger of AGENT. If you want , use that otherwise you are responsible for maintaining the account of AGENT only. The excise invoice is only for the purpose of claiming set off, if any. It is a stappled/ attached document to the bill of your agent.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

DHANASHRI KARMARKAR

CA Aakarsh Jain

Michael & Co.

divakar podaturu

sachingurav

Subscribe Now

Accounting

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA