Can any one clarify me on the following
Can a seller of goods act as a C&F agent on behalf of the buyer of the same goods, and raise invoice as an agent on his own name.
the problem here is with taking VAT credit as a C&F agent and Output Vat payable as a seller.
Pls clarify on this.
Also clarify on the accounting part as a C&F agent.
Mr Chaitanya,
Here a C&F agent can replace a principal (main dealer),in the assigned transaction of either purchase or sale on behalf of his principal. Between the principal and the C&F agent there will be only stock transfers and no sale. A principal can transfer some goods to his agent(C&F) and ask him to sell. The agent will sell,collect tax and pays to the govt. He can also avail the input credit of the principal as per details provided by him.The agent after effecting sale of consigned goods he furnishes a 'Sale Patty' giving details of invoices amount ,tax collected and paid to govt transportation etc, which will be the supporting record for the principal. Similarly,one can act as purchasing C&F agent.In this case the agent buys goods against invoices and transfers all those goods to the principal. The principal can avail the tax paid by the agent on such purchases. You may note that the agent carries on the buying and selling activity in the name of the principal only, not on his TIN no or invoice........MJK
Thankyou Mr. MJ krishnamurthy.
I would like to clarify on the following.
If a dealer doesnot have VAT registration in a particular state and want to buy goods from that state through a C&F agent.
can the seller of the goods act as a C&f agent of the buyer.
CAclubindia
