accounts

This query is : Resolved

govind (Querist)
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10 January 2011
Kindly give us your best opinion

We are gone with bottling agreement with XC Company we bottle the liquor for the e.g. X company, at stiupated amount per case. Some raw material purchase by us on our accounts some by M/s X. The sales bill raised by us and fund received by us.

Kindly inform us the accounting treatment for whole transaction.

Since we are manufactuirng for another company wheter service tax liability arises.

Kindly inform treatment on material supplied by M/s X.
Pl inform the following:-

Vat credit is used by us since purchase made by us.
Whether the sale is our sale of M/s X since we are raising the Invoice. but parties and the rate decided by M/s X. and as per agreement the sales is their.

What treatment is given for the transaction for material supplied by M/s X.

We only concern the bottleing charges with is received by us.

At present we are treated the sales as our sales and purchase as our purchase wheter it is correct if wrong please suggest remedies.

Thanking you

Govind Parik

Vivek Raju P

Vivek Raju P (Expert)
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10 January 2011 Revenue :

Sundry Drs.....Dr

To Bottling Revenue... Cr

For Purchases

Purchases A/c .....Dr

To Sundry Creditors....Cr
( You may use control accounts for routing to facilitate recons)

Service tax is not liable as this is a manufacturing activity.

Further as this is a manufacture of liquor the concerned state excise will be applicable as this is a state subject and central act will not be applicable

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