Effect on accounts and tax liability

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2011 Hi, M a accountant in a jewellery showroom.
We have a coustomer who make apayment Rs. 1,20,000/-. He want issue the bill in his name but payment made from Credit card of his friend. So, please suggest wat to do..

U S Sharma

U S Sharma (Expert)

12 August 2011 make bill in his name and mention on face of the bill regarding payment made by card no ....... in name of .............

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2011 Thanks for quick reply. Please, also clear that there are no effect on Company's tax liability for this type of payment.?????

U S Sharma

U S Sharma (Expert)

12 August 2011 you are selling jewellary and vat is payable on only sales

for payments its as good as cash( made through bank ) but to avoid litigation from 3rd party if he claims the money , for this purpose only, u have to maintain the above procedure

U S Sharma

U S Sharma (Expert)

12 August 2011 another doubt,

payment made by credit card of his friend, how he can make payment in absence of his friend? who will sign slips?

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