Revenue V/s Expenses Transaction With Same party

This query is : Resolved

CA jignesh daiya (Querist)
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29 September 2021 Dear Sir
One Advice Required For Accounting .
Our One Client Is making Transaction With Same Party For Receiving Of One Services And Providing Of another Services.
the Account For Receipt Or Payment Are Settled Monthly Basis .

Client Wants To Raise /Receive invoices For Net Amount After Adjusting Revenue for Providing service and Expenditure For Receiving of Services And Settele the Account .
Can LLP Do So Or Not ?
Please Advice As Per Accounting protocol As Well As Taxation Norms .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 September 2021 LLP can't do so.
Invoices to be raised for full value of service provided and receive invoice for full value of service received. GST applicable on full value of invoice.
Payment/ receipt of amount can be for net amount.

CA jignesh daiya

CA jignesh daiya (Querist)
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30 September 2021 Any Specific Provision For The Same ? That I Can Quote To Client .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 September 2021 Under the GST regime, an “invoice” or “tax invoice” means the tax invoice referred to in section 31 of the CGST Act, 2017. This section mandates the issuance of an invoice or a bill of supply for every supply of goods or services.

CA jignesh daiya

CA jignesh daiya (Querist)
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30 September 2021 And From Accounting Points Of View
From Part of Accounting Standard ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 September 2021 From accounting point of view separate invoice has to be issued.
Issuing net invoice amount to tax evasion.

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