We are an automobile dealer who is selling vehicle as well as giving service to the customer. Now manufacturer has a policy that each vehicle owner has eligibility for 3 free service. (namely 1st, 2nd and 3rd free service) from the dealer. Against each free service company has fixed the labour amount.
Now there are two situation.
1. customer can buy the vehicle from dealer X and get the free service done from Dealer Y. And Dealer Y can not charge the customer any money. But dealer Y can claim the labour amount from dealer X with service tax.
2. Customer has bought the vehicle from Dealer X and he has done the free service in Dealer X itself. Again Dealer X can not claim any labour amount from the customer which means it is the own expense for the Dealer X.
As an account person, I do not have problem while posting the Tally entry in situation 1.
But our main problem arise while posting the Tally entry for situation 2. We have the following information available with us
a) bill against customer with bill no but zero value as we are not charging the customer any amount.
b) we also have the free service coupon which stands for particular labour amount.
Now keeping a) and b) in mind for situation 2 how do we post the tally entry so that this internal consumption amount does not stand against our dealer's liability side.
CAclubindia
