Vat reimbursment is income nd weather taxable

This query is : Resolved

rithish (Querist)
Follow

06 October 2016 Sir I have an query Abc company located in goa supplying organic fertilizer all over india in every state to the warehouse of each state. EG: Abc supplying fertilizer to karnataka warehouse z firm, for supplying goods with same price not any additional price or profit.they will give only commission to the karnataka warehouse z. Warehouse need to distribute materials for whom they got order from abc.. And here suppose Abc given material to Z for rs 100 without c form and z will distribute the same material to anoop but z will collect vat, 95+5 vat =100 That 5rs vat is paid by z to karnataka govt.. After paying vat the same vat is reimbursed by main branch Abc.. Weather that vat reimbursement is income nd that is taxable..!!

CA Aman kesharwani

CA Aman kesharwani (Expert)
Follow

06 October 2016 no vat reimbursement is not and income..... sale would be booked @ 95, 5 Rs under output VAT and Reimbursement of Rs 5 will be booked as income.

Message likes : 1 times

rithish

rithish (Querist)
Follow

12 October 2016 Thank You so much Sir..:)

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok