How to do cut off checking
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 November 2011
Hi
1) In case of purchases how to apply cut off?
i.e. a)whether on basis of invoice date
b)when goods enter the factory gate c) when they are finally accepted and enter into purchase register. or any other method?
1) In case of purchases how to apply cut off?
i.e. a)whether on basis of invoice date
b)when goods enter the factory gate c) when they are finally accepted and enter into purchase register. or any other method?
18 November 2011
Purchases -
1. The GRN date in case of term of purchase are CIF, door delivery etc. it means goods will be delivered by the vendor at clients factory gate.
2. The despatch date from the vendor's factory where the terms are ex-factory. if goods not reached to the client on cutoff date they should be shown as goods-in-transit.
Sales -
1.For terms ex-factory - clients delivery challan date will be considered for cutoff
2. for CIF terms - the date goods reach to the client will be the cutoff date.
In short, we need to verify the terms of sales and purchase to identify when the risk and rewards related to the goods transferred to client in case of purchases and to customer in case of sales.
1. The GRN date in case of term of purchase are CIF, door delivery etc. it means goods will be delivered by the vendor at clients factory gate.
2. The despatch date from the vendor's factory where the terms are ex-factory. if goods not reached to the client on cutoff date they should be shown as goods-in-transit.
Sales -
1.For terms ex-factory - clients delivery challan date will be considered for cutoff
2. for CIF terms - the date goods reach to the client will be the cutoff date.
In short, we need to verify the terms of sales and purchase to identify when the risk and rewards related to the goods transferred to client in case of purchases and to customer in case of sales.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- NRI starting business in India
- TDS Deducted AY-2013-14 Not Reflected in 26as
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- ADVANCE PAYMENT OF ADVOCATE
- CREDIT NOTES WITHOUT GST
- Condonation . E-Verification of last year return .
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
