Please suggest one of my client propose to purchase waste human hair from house wifes for small amount say Rs. 50/- 100/- within the state. sales may be in crores in a month. and sells collected hairs to factory who manufacture wigs and other hair products in this regard how my client prove purchases are made. how one should mange record of purchases
30 January 2022
You should create Challan cum Receipt document. This document should contain description, qty and value of the hair bought ,name of the supplier with (mobile no., date etc.).You should get it signed from the seller and counter signed by you as recipient of material. Based on this you can record the purchases in your books of accounts.
CAclubindia
