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REGARDING RAISING OF SERVICE BILL

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A2Z SOLUTIONS

25 Points Posted on 03 July 2021

WE ARE HAVING BUSINESS OF BEVEREGES OF GST % 12 , 28+12, AND 18

WE PURCHASE THE GOODS DIRECT FROM THE COM PANY AND SALE ON THE SAME RATE AS WE RECIEVED

AFTER THE MONTH WE RAISE THE INVOICE OF INCENTIVE TO THE COMPNAY WITH THE TAX OF 18% THAT IS TO BE CHARGED TO THE CO M PNAY

THE QUESTION IS THAT WE ARE SELLING THE GOODS ON THE SAME RATE AND RIASING THE INVOICE OF SELLING THE GOODS

PLEASE PROVIDE THE SOLUTION.

THANKS

Replies (5)

Quick Summary

This discussion concerns a business selling beverages at the same rate they purchase them, aiming to meet sales targets. After month-end, they raise an invoice for incentives received from the company, charging 18% GST on this incentive amount. The core question is whether this practice, where purchase and sale taxable values are identical, will cause issues during a GST audit, especially since the incentive invoice is raised separately.

anil jain

Partner

855 Points Posted on 03 July 2021

what is your problem, query, question,

pl elaborate

per my opinion, it is ok as you raise separate bill for your mark up.

A2Z SOLUTIONS

25 Points Posted on 05 July 2021

BUT THE MAIN QUESTION IS WHETHER GST AUDITORS HAVE PROBLEM THAT THE PURCHASE AND SALE BOTH TAXABLE VALUE IS SAME SINCE FOR ACHIEVING THE TARGEST WE HAVE TO SALE IN SAME RATE AS WE PURCHASED

BUT ON ACHIEVING TARGETS WE GOT INCENTIVES THAT WE RAISE THE BILL AGAINST THE COMPANY WITH 18% GST.