Material return

Tax queries 400 views 2 replies

Guest

party return material which was purchase on 1.4.2011Net Rs.10000/- VAT Rs. 1000/- Gross amt. Rs.110000/-

Party retrun the above material on 31.10.2011 entire material.

MY QUERY 1)WHAT WILL BE ENTRY FOR MATERIAL RETURN.

2) CAN WE TAKE INPUT TAX CREDIT OF VAT AT THE TIME OF RETURN AS THE DATE OF INVOICE IS MORE THAN 6 MONTHS.

PLEASE ANS. MOST URGENT.

Replies (2)

Chartered Accountant

4780 Points Joined March 2009

1) You will have to pass a Reverse Entry which is as follows :-

Sales A/c Dr. XXXXX (Gross Amount)

To Sundry Debtors A/c XXXXX (Gross Amount)

(Being goods returned by Customer)

Note : Pass the above entry as Credit Note

2) No. You cannot take the Input Tax Credit of the same.

Regards,

Devendra Kulkarni

Guest

But sir, from above entry (credit note) my Sales reduced excess by Rs.1000/- ie Vat amt.

At the time of sale we not considared vat as Sales.

pl suggest.

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