Treatment of damaged goods
This query is : Resolved
07 May 2014
Hello,
We have issued credit note for loss of damaged goods.
Now I am confused, how it should be treated?
either
1) it is taken as normal or abnormal loss
2) it is treated as direct expenses as whatever loss is incurred it is increases our cost
3) or we have reduced sales amount.
Thanks in advance......
We have issued credit note for loss of damaged goods.
Now I am confused, how it should be treated?
either
1) it is taken as normal or abnormal loss
2) it is treated as direct expenses as whatever loss is incurred it is increases our cost
3) or we have reduced sales amount.
Thanks in advance......
07 May 2014
1. U have to treat it as abnormal Loss.
2. Comes under trading account Credit side or u can also deduct the value from purchases.
3. No need to reduce sale. U can aso sale it as scrap.
2. Comes under trading account Credit side or u can also deduct the value from purchases.
3. No need to reduce sale. U can aso sale it as scrap.
07 May 2014
Sir, still I am confused,
it is treated as abnormal loss or we do not have to reduce sale amount.
But sir at the time of VAT filling sale amount will differ from actual amount as soon we do not have reduced sales.
So it is proper or not?
it is treated as abnormal loss or we do not have to reduce sale amount.
But sir at the time of VAT filling sale amount will differ from actual amount as soon we do not have reduced sales.
So it is proper or not?
07 May 2014
Y should u reduce ur sale? If the goods r received defective then u must treat it as abnormal loss & u cant sale those goods as normal goods.
07 May 2014
No sir, goods are received in perfect condition but when we have sold this goods to our client, then he has claimed as damaged goods and for that we have passed his claim.
07 May 2014
Ok, in that case u must decrease ur sale from that amount. And no need of payment of VAT on that amount, coz if u cancel the sale then the VAT amount must also b refunded by u to the purchaser, hence ur liability to pay VAT ends only on that bill.
07 May 2014
Ur welcome Devang
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
- Is any professional CA is here please reply
- Reopen of assessment proceeding
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Putting a heading on received mail
- Gift Received from nonblood relative
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Experts need help
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Rental income gst and it purpose
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
