Loss of goods
This query is : Resolved
21 May 2019
An assessee who is engaged in the trading of Marble Powder lost 2 bags due to the negligence of the transporter on account of rain.
This is the 1st event of loss in his business.
The assessee recovers the purchase amount of the 2 bags from the transportation expenses to be paid to the transporter. The assessee has recorded net amount paid to the transporter as transportation expenses in his books.
My queries:
a. Whether the loss should be treated at as normal loss(for the time being, leave the amount recovered from transporter aside)?
b. In case its normal loss, whether itc should be availed on these two bags?
c. Whether any treatment is to be made of the amount recovered from transporter?
This is the 1st event of loss in his business.
The assessee recovers the purchase amount of the 2 bags from the transportation expenses to be paid to the transporter. The assessee has recorded net amount paid to the transporter as transportation expenses in his books.
My queries:
a. Whether the loss should be treated at as normal loss(for the time being, leave the amount recovered from transporter aside)?
b. In case its normal loss, whether itc should be availed on these two bags?
c. Whether any treatment is to be made of the amount recovered from transporter?
CA R SEETHARAMAN
(Expert)
22 May 2019
a. As the amount is recovered from transporter it's not a loss.
b.Reverse ITC as material lost in transit not a normal loss.
C.Give credit note to buyer and adjust against recovery
b.Reverse ITC as material lost in transit not a normal loss.
C.Give credit note to buyer and adjust against recovery
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
- EPF ECR NEW FILE SEP 17TH 2026
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Non filing of I T Returns
- TDS on Fixed Assets purchased
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on purchase of under construction property from a reseller
- Capitalgain tax purposes for valuation report compulsory
- SALARY CAN BE CAPITALIZE
- TAX AUDIT ON PROFESSIONAL INCOME
- Under marginal scheme
- Import of Software Service.
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
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
