If a seller makes a sale on "sale or return" basis and in the books it is shown as Sales.
When does the tax liability arise - immediately after the invoice is raised OR when the Buyer approves the sale of goods and makes payment to the seller.
e.g. If the seller A makes a sale to buyer B on SOR basis (say in 1st quarter of the year). The invoice value is Rs. 100 + 12.5 VAT = Rs 112.5
The Buyer confirms/approves the goods worth Rs. 50 in the 2nd quarter and makes a payment of 50+6.25 to the seller (i.e. after the buyer is able to further sell the goods).
Ques: At what point in time the Seller has to deposit the tax to the government? Immediately at the end of quarter when the Invoice was raised i.e. at the end of !st Quarter OR when the Buyer approves the part of the goods delivered and make a payment to Seller (sometime in 2nd Quarter)?
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