Impact over VAT amt due to credit note
This query is : Resolved
08 June 2009
Seller gives invoice to party in this form:
Sale of 100Kg goods @ 20 = 2000
VAT @12.5% = 250
Total = 2250
But actual receipt to Buyer is 95 Kg of goods. So which of following entries Buyer shd pass entry for this:
a)Purchase 2000
Vat Input 250
To Seller 2250 &
Seller A/c Dr 112
To Dis Recd 112
(in this case VAT credit is taken for full)
or
b) Purchase A/c Dr 1900 (95*20)
VAT Input A/c Dr 237
To Seller A/c 2137
(Here VAT input has been taken proportionately)
So which of A or B will be correct method?
Sale of 100Kg goods @ 20 = 2000
VAT @12.5% = 250
Total = 2250
But actual receipt to Buyer is 95 Kg of goods. So which of following entries Buyer shd pass entry for this:
a)Purchase 2000
Vat Input 250
To Seller 2250 &
Seller A/c Dr 112
To Dis Recd 112
(in this case VAT credit is taken for full)
or
b) Purchase A/c Dr 1900 (95*20)
VAT Input A/c Dr 237
To Seller A/c 2137
(Here VAT input has been taken proportionately)
So which of A or B will be correct method?
09 June 2009
The second one would be proper since you have not received the materials at all.However the supplier should be informed to pass entries in his books for short sending.
He would also be able to reverse the entry and revise his return.
He would also be able to reverse the entry and revise his return.
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