Our firm is Retailer (in Maharashtra), is delaer of Adidas. We receive purchases from Adidas Gurgaon against C-Form.
In 2008-09 Q3, we Returned material ( old stock/ Non-running Item ) of Rs.9 lakh to Adidas Gurgaon. This material is relating to Purchases within Six months = Rs. 1 Lakh ( Shoes ) and Purchases beyond six months = Rs.8 Lakhs.
My consultant says, Purchase Return of Purchase relating beyond six months will not be treated as Purchase Reutn. What does this mean?
Pl help me to understand the Accounting treatment as well as the CST-VAT Treatment of above Pruchase Return.
Regards,
Sanjay Agarwal
snjy_1 @ yahoo.com
CAclubindia
