System of Accounting By GTA
This query is : Open
06 July 2021
Sir / Mam
We are GTA . We are paying for bio- diesel on behalf of sub-contractors and adjusting it against their payments and not for own use.
How ever, the supplier of bio-diesel issues invoices in our name.
In our software, the daily consumption can only be accounted from supplier to sub-contractor.
We can see only the outstanding liability to supplier and the payments to be adjusted from sub-contractors.
As we are not eligible for availing gst inputs, We are not accounting the stock and not showing the expenses in books but We are accounting the supplier as creditor.
Kindly advise us whether this system of accounts is correct or not.
Thanks in adv
We are GTA . We are paying for bio- diesel on behalf of sub-contractors and adjusting it against their payments and not for own use.
How ever, the supplier of bio-diesel issues invoices in our name.
In our software, the daily consumption can only be accounted from supplier to sub-contractor.
We can see only the outstanding liability to supplier and the payments to be adjusted from sub-contractors.
As we are not eligible for availing gst inputs, We are not accounting the stock and not showing the expenses in books but We are accounting the supplier as creditor.
Kindly advise us whether this system of accounts is correct or not.
Thanks in adv
06 July 2021
If below is the entry passed on incurring the expense and subsequently adjusted against payments due to them, then the treatment is correct:
Sub-contractor account Dr
To Cash/Bank account
Sub-contractor account Dr
To Cash/Bank account
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
- Opting our of sec 44AD
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Value of property in capital gain
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- LC charges in relation to Asset purchased should be Capitalised ?
- Copyright software
- Form 121 & TDS deduction
- Regarding TDS Applicability For Director Remuneration
- Regarding appeal to GSTAT
- Transporter Declaration form
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
