Effect of purchases debit note

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2014 dear Sir,

Company finalised or B/s for 12-13, & after that we found we booked purchases at excess rate which result in to loss in current year. So we desided to pass Debit note JV of Rate diffrence in Purchases.
We not paid advance tax in that FY year. due to this JV our books will show profit by 6 lac.

My query is
1.can we show this is entry in last year balance sheet?
2.What is impact of Vat & Income Tax(if loss shown in B/s & advance tax not paid)
3.How to adjest this rate diffrence in purchses.

Kindly suggest best option to clear this issue.

Regards
Janardan

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)

21 January 2014 NORMALLY, CN FOR RATE DIFFERENCE MUST BE REDUCED FROM PURCHASES.

IN VAT ALSO PURCHASES SHALL BE SHOWN NET OFF CREDITNOTES FOR RATE DIFFERENCE. IF YOU HAVE SHOWN GROSS PURCHASES BEFORE CREDIT NOTES ADJ.IN VAT RETURNS, IT RESULTS IN EXCESS INPUT TAX CLAIM AND LESS PAYMENT OF VAT. SO TAKE CARE BEFORE MAKING ANY ADJ. BECAUSE COMMERCIAL TAX DEPT. WILL COMPARE I.T. TURNOVER WITH THE VAT TURNOVER.

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2014 Dear Sir,

This is tax free product, we not claim vat in purhcases and sale.

Can we book this debit note in earlier year b/s?
Kindly advice

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