We bought and sold some goods to a company and were dealing with that company from long time Last we had to pay 120 lakhs to him and instead of paying we sold maize to that comaony goods worth 113 lakhs and cut the bills but that comaony accounts are still showing tht we owe him 120 lakh rupees Now thy company has gone bank rupt and income tax and bank has to take a lot of money from them Can income tax and bank recover tht moneybfrok us by issuing notice as they can recover money from the Debtors But our books owe him only 7 lakhs In this case what we can do ?
Do you have any proof that they had accepted that 113 lakh worth of goods from you/ or did they ask any account confirmation from your side?
If yes then they will only recover 7 lakh from you, if no then they might recover 120 lakh from you.
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Thank you
Hi
You must have sufficient proofs in relation to the sale of 113 lacs. A letter could be issued in the company's name showing such adjustment. That would suffice the requirements and you need not pay the entire 120 lacs.
Maintain complete documentation to be submitter to the IRP as appointed by the NCLT.
Dear Sir,
That company didn't updated its account.
Hope you raised bill for that supply. And declared it as sale/supply in your financial statements in the year of supply.
Produce ledger account of that company in your books to the Income tax department if you received any notice in this regard. Along with statement also send Financial statements to establish there are no outstanding amounts. And a letter explaining you are not anymore liable for the dues.
We sold them products ex warehouse to them almost 10 months ago and we have weight scale receipts and also we have bill of supply but as I understand this company is doing fraud so they did not enter these bill of supply in there books and may be sold the product cash as they knew they will be bankrupt Now as proof we have bills of supply and trucks weight slips also our ledger shows we don’t owe them anything In case we get any notice from bank or income tax to pay this money directly to them ( still we haven’t received any notice ) What should we do in that case ? We can reply we don’t owe them anything What can income tax authorities do in this case with us ?
Sir,
Declare the supply in your accounts with these supporting documents. Have you raised E-way bill for that supply?
Dear Sir,
Hope you are doing well !!
Do you any proof of materiel supplied to them?
Hello,
You must be having sufficient evidence of the sale of Rs. 113 Lacs to the company.
if you are able to prove it then you won't be asked to pay Rs. 113 Lacs to the income tax department or bank.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
In case you receive any notice, you must reply with a true picture on your end. No matter whether that company has recorded such transactions or not, your proofs shall be considered provided they are satisfactory.
Give the company a letter for such adjustment and keep a copy for submission, if you receive any notice in future.
Have they acknowledged the receipt of goods i.e. you have the signature of the required authority on that bill which shows that they have received the goods?
If yes you can show it as a proof and then if you don't owe any liability then they won't ask for any money from you.
Hi,
As per my understanding, it will be treated as sufficient proof.
Hi,
- Does the court declared the company insolvent?. Does any operational creditor or financial creditor moves to the NCLT to declare the company insolvent?. If yes then the IRP will proceed to recover the debts otherwise no authority can directly approach you for the recovery of their demands.
Thanks
