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VAT ON EXPIRED MEDICINE RETURN TO SUPPLIER

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pritesh (Querist)
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02 November 2010 DEAR SIR
PL GUIDE ME IN THIS MATTER
ONE OF MY CLIENT IS WHOLESALE DISTRIBUTOR FOR MEDICINE. DURING THE YEAR 09-10 HE HAS GOODS (MEDICINE) RETURNED TO HIS SUPPLIER AMOUNTING TO RS. 15.0 LACKS OUT OF HIS OPENING STOCK & SHOWN IN TRADING A/C. NOW I HAVE TO FILE HIS VAT REVISE RETURN.
MY QUERY IS
1)WHETHER VAT SET-OFF WILL BE REDUCED ON THE SAME AMOUNT
2)IF NOT, HOW PURCHASES WILL BE TALLIED ?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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02 November 2010 Your question is VAT realted, the rules of VAt varies state to state. In some states in case of MRP like goods, VAT is paid on sale value. there is no inpur revesal.

However, if you have taken the input credit at the time of purcahse, no doubt, input credit is to be reversed at the tome of sales return.

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