Doubt on sales returns

Sir,

Pl. guide me when ever sales return from customer taken place 1. With in 6 Months we can claim for VAT amount 2. If sale transaction is more than 6months - Pl. advice the procedure of accounting and as well as returns procedure. My basic doubt is: when we are invoicing On 10.10.2012 Value -100 VAT-5 Inv value 105   At the time of sales returns in June'14 Can we show entries in books as below: Sales value : 100 VAT 0 Net crn to customer 100 For compansating remaining Rs.5/-  is there any provision, so that we can issue credit note to dealer. Pl. advice Regards Prasad  

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Replies (1)

Dear satya

You can claim the benefit for credit note only if the goods are returned within 6 months of the sale made. You will need to issue a credit note to your customer . The credit note should have separate mentioning of VAT else no benefit of credit note would be available.

 

Accounting entry : Reverse the entry made at the time of sales.

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