Sales Tax on Samples & Replacement/ FOC Material
This query is : Resolved
08 October 2008
Dear Sir,
1. We are manufacturing Industry issuing our Final Goods as Samples through Excise Invoice after pmt. of BED, Value of Samples is in Lacs, is there any condition to charge Sales Tax on that typy of Invoices
2. Can we write off Debtors of above transactions because amount is not suppose to receive.
1. We are manufacturing Industry issuing our Final Goods as Samples through Excise Invoice after pmt. of BED, Value of Samples is in Lacs, is there any condition to charge Sales Tax on that typy of Invoices
2. Can we write off Debtors of above transactions because amount is not suppose to receive.
10 October 2008
Waiting for Ans.
16 October 2008
Free samples do not attract salestax.
Why are you debiting debtors instead of directly charging to expenditure.
Why are you debiting debtors instead of directly charging to expenditure.
17 October 2008
Thanks for reply Sir,
By this our debotors will not generate but our Sales will increase with samples value, at present we are passing following entry to write off both accounts (debtors & Sales)
First Entry:
Dr. Debtors xxx.00
Cr. Sales-Sample xxx.00
(Through Sales Invoice Voucher in books to reduce the stock & to charge Excise Duty, in our case Excise duty is charged on per qty. not on value)
Second Entry through Journal Entry
Dr. Sales-Sample xxx.00
Cr. Debtors xxx.00
(Through JV to write off both the accounts from Books)
Is it correct method, please advise
Thanks
By this our debotors will not generate but our Sales will increase with samples value, at present we are passing following entry to write off both accounts (debtors & Sales)
First Entry:
Dr. Debtors xxx.00
Cr. Sales-Sample xxx.00
(Through Sales Invoice Voucher in books to reduce the stock & to charge Excise Duty, in our case Excise duty is charged on per qty. not on value)
Second Entry through Journal Entry
Dr. Sales-Sample xxx.00
Cr. Debtors xxx.00
(Through JV to write off both the accounts from Books)
Is it correct method, please advise
Thanks
18 October 2008
THe method as described by you is OK.
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