12 February 2014
A company whose financial year ends on 30/09/2013 have sold goods of Rs. 10 crore to a client against form C .Sales tax has been charged and deposited to authorities .Now that client has returned the goods in the m/o of January 2014.
Now my query is what will be the treatment of tax charged and deposited against form c .and since the financial year of the company has been closed how this transaction of goods return will be shown in the books of accounts.Does it also make difference if the goods have been returned with in 6 month from sale and also if it is returned beyond six months of sale.
18 February 2014
there is prescribed limit of goods return under Act, that is 6 months. if goods are return within prescribed time limit, this can be considered as sale/purchases return and tax can be adjusted.
CAclubindia
