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A fabric manufacturing company loaned chemicals to a party and is now being asked to issue a sales invoice in return. The company is seeking advice on whether this is a fair transaction and if there are alternative ways to record this in their accounting. The suggestion is to issue an invoice referencing the original delivery challan and e-waybill, potentially with interest applicable from the challan date.

Gaurav

Gaurav (Querist)

07 December 2020 Dear sir/madam,

we are the Fabric manufacturing company. we have given Chemical to our party on loan basis. in return of such loan instead of receiving Chemical party is asking us to issue sale invoice against the same. can we able to issue sale invoice of chemical, is it fair transaction. or is there any other way of booking this transaction

Do let me know ASAP.

regards,
Gaurav Patil

Lekhraj sood

Lekhraj sood (Expert)

08 December 2020 On what document you have given the chemical on loan basis?

Gaurav

Gaurav (Querist)

08 December 2020 On delivery challan.

Lekhraj sood

Lekhraj sood (Expert)

09 December 2020 You can raise the invoice giving reference of earlier delivery challan and ewaybill. You may have to pay interest from the date of the challan.

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