Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

unfix purchase transaction

Save Share

This query is : Resolved

Ashok (Querist)
Follow

08 May 2008 There was a Unfix Purchase of Gold Bar in March of last year, now the creditor produce the invoice in current year 2008-09 for the above unfix purcahse. So what is the Accounting and Tax Treatment.

CA Akshat

CA Akshat (Expert)
Follow

11 May 2008 the purchase will be considered only when the invoice is prepared
dont include the unfix purchase in closing stock
show it is as an contingent liability as per AS 5
margine payment for unfix ourchase are advance

TAX TREATMENT
whole purchase is allowed in the year in which transaction of 2008-09
no wealth tax is liable as the gold is in stock and its assumed that its for trading so no capital gain tax also.

Ashok

Ashok (Querist)
Follow

13 May 2008 Suppose I Received Physical stock in March 2008, and the Purchase invoive generated in 2008-09 I have also given a margin mony against delivery of goods. so what is the effect on closing stock and should I considered the purcahse in March 2008.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now