I have a client, normal business one who had some stock from last year, did trading for 6 months and returned the stock to supplier and closed business.
Tehcnically, lets suppose
opening stock: 40 Lacs
Sales: 5 Lacs
Gross Profit: 1 Lacs
Closing Stock: 0
Purchase: -36 Lacs
The purchase return was accepted by supplier and gave us credit note on GST2A for which we reversed all ITC and paid around 2-3 Lacs in cash.
Now, ITR form is not letting me put negative figure in purchases.
How to fix this?
One idea i was told was that i should keep closing stock and carry forward but business is closed and so is shop and there is no actual stock available so its not like the client is even doing business anymore.
CAclubindia
