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Sale return which are more than 6m

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George Rajan

40 Points Posted on 18 December 2012

Dear Members,

During vat audit in the sales if there are goods returns we check whether the returns are within 6m from the sale invoice date and if it is not then we disallow the goods return and the dealer has to pay vat on that amount. but when it comes to purchases why do we not take purchase returns which are more than 6m to be diallowed and vat paid on those goods returned to be eligible for set off to be claimed???

Replies (2)

sankar

Manager in Rank Silicon And Industries P

49 Points Posted on 18 December 2012

I did not under stand your question. can you explain it with example.

George Rajan

40 Points Posted on 18 December 2012

Dear Sankar e.g. Net 5% VAT 5% Gross. 1000. 50 Return. 100. 5 Net. 900. 45 Now this for sales, here normally vat payable is rs 45 now if the returns are more than 6 months from the invoice date then we disallow it and the vat payable now becomes rs 50 In the same way assume the above example to be of purchases. Here normally we get a set off of rs 45 my question is if the purchase return was more than 6 months then by disallowing it I wud be able to take a set off of rs 50 Y cannot I do this??? Or can I do this?