Invoice

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2011 dear sir

i am doing audit of one mlm company. they are selling goods to area stockiest on dp price and further area stockiest sale to distributor also on dp price. so when we sales to area stockiest then we generate vat invoice and when area stockiest sale to distributor then automatic bill generated showing us as seller and distributor as buyer.

please tell me is there any legal issue in showing seller as our name on online invoice when area stockiest sale to distributor?? as there is no change in selling price and area stockiest working only for commission

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

01 January 2012 Mr Author,
Once the company sells to a stockist the goods belong to that stockist. When that stockist sells the same goods to a distributor he should issue his own invoice. If he quotes the first company's name it amounts to double transaction on the same goods. A question also arises as to what happened to products purchased by the stockist.Selling at the same price bought by stockist,on the grounds of commission does not help him. So both will be in trouble if any scrutiny is made by tax authorities

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now