Accounting treatment for penalty paid under sec 129 (3)
I want to state that my client has sold goods without invoice and goods was intercepted during transit. A.O. imposed penalty as 100 % of due tax and 100 % equal to tax as penalty under sec 129(3).
Now, i want to know, whether i can issue taxable sales invoice after releasing goods from officer and pass on credit to the buyer or not?
Whether buyer is eligible to take ITC of such goods?
If i can not issue taxable sales invoice, then what accounting entry we can pass for such type of sale?
Further, i want to ask, what is accounting entry for penalty paid (4000/- as CGST and SGST Tax and 40000/- as penalty) under sec 129(3).
The sale of goods is related to other state, then i have to issue a new sales bill with IGST tax to the consumer, and pass on IGST credit to the consumer.