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OVER INVOICING

Pravin Agarwal (CEO) (48 Points)

25 December 2023

CAN INCOME TAX RAISE OBJECTION ON OVER INVOICING OF GOODS?

RATES COMPARED IN GENERAL MARKET ARE 30-35% LOWER.

UNDER WHICH SECTION INCOME TAX CAN TAKE ACTION?

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10 Replies

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 25 December 2023

RATES COMPARED IN GENERAL MARKET ARE 30-35% LOWER...!!

It's mean Your invoicing is lower... Right...??

Pravin Agarwal (CEO) (48 Points)
Replied 25 December 2023

OUR INVOICING IS HIGHER

Sharath chandra (Accountant) (1215 Points)
Replied 25 December 2023

Depends on what kind of goods and you are selling this to whom. is it to all the public or specific related people?

Pravin Agarwal (CEO) (48 Points)
Replied 25 December 2023

GOODS ARE PACKAGING GOODS, AND IS SUPPLIED TO ONLY 1 COMPNAY AT 35% HIGHER RATES.

sabyasachi mukherjee (26073 Points)
Replied 26 December 2023

It's under the purview of gst act not income tax act.

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 26 December 2023

Originally posted by : sabyasachi mukherjee
	It's under the purview of gst act not income tax act.

Okay Officer...

CA Raj Doshi (Practising CA) (8735 Points)
Replied 26 December 2023

Sir
If you are doing genuine work, then no problem. Income tax does not have any issue provided both are unrelated parties. Refer section 40A(2)(b) which is applicable to purchasing company

Rgds
CA. Raj Doshi
R C D & Co.
Chartered Accountants

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C.A. Sandeep Wawhal (Chartered Accountant PGDFM BCom.) (1823 Points)
Replied 27 December 2023

Over invoicing to related party is prohibited under income tax laws. Refer section 40A(2)(b) of Income Tax Act.

As far as GST Law is concerned, over Invoicing will not be an issue whether for related person or not. Only under Invoicing is prohibted under GST law if purchaser is not eligible for full ITC.

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