SUPPOSE WE BOOK A FAKE INVOICE IN THE BOOKS TO RAISE THE SALE IN THE BOOKS.
THE DETAIL OF BILL IS FOLLOWS :
BILL AMOUNT --------------------------RS.20,00,000.00
S.TAX ON THAT------------------------RS.2,47,200.00
TOTAL ------------------------------------RS.22,47,200.00
THE PARTY NOW PAID THE AMOUNT BY CHEQUE RS.20,22,480.00 BY CHEQUE AFTER DEDUCTING TDS OF RS. 2,24,720.00
NOW PLS TELL ME WHAT AMOUNT OF CASH WE SHOULD PAY TO PARTY.
22,47,200 plus his commission...
| Originally posted by : Vaibhav Kumar Agrawal | ||
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22,47,200 plus his commission... |
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IT IS WRONG
THERE IS NO COMMSION THE PARTY ALSO WANT TO BOOK THE EXP TO DECREASE HIS TAX LIABILITY
20,00,000
hmmm...gd
The cash that you have to pay is Rs. 20,00,000/- (you recieved 2247200 in bank & TDS. since the party will book cenvat credit of the service tax you deducted hence actual cash paid will be 20 lakh)
if no commission then 2247200, provided the party cannot take the cenvet (i.e the party is neither a manufacturer nor a service provider.)
TDS:-
It will be allowed to you in Income Tax Return.
Hence does not have any negative Impact.
Sales Tax:-
You have to pay the same to Govt. and not able to get it back.
Hence it has negative impact
Therefore amount actually payable to party
Invoice Amount - 2,247,200/-
Less:- Sales Tax - 247,200/- (Not able to recovery in any form)
Net amount payable- 2,000,000/-
assuming u have no Tax Liability on your profit.
Otherwise Tax Liability of Your also consider while calculating the amount to be paid in cash
As it is fake invoice and just book entry, I think that there is no need to pay any cash
DUDE AS MENTION IN THE QUESTION OHTER PERSON WILL PAY BY CHEQUE AFTER DEDUCTING TDS
20,000 only you have to pay,
RULE 6DD,...
the full amount plus commission if any.
CAclubindia
