Multi State Transactions of Service Centre
I have a Service Centre of Electronic Goods in Punjab and a branch in Delhi.
First Question:
I purchase PART : XYZ from Company in Punjab and billing is from Punjab Warehouse say for Rs.100 + 14.3% Tax = 114.3.
I consumed part in Warranty , how to show this consumption in books as company will give claim at original cost i.e. 100 + 14.3% Tax = Rs.114.3 . Does this consumption will act as a Sale of Goods or it will act as Purchase Return.
If it act as Sales of Goods then problem arises of income tax as they calculate profit @8% on sales of goods in books.
Second Question:
I purchase same PART: XYZ from Company in Delhi and billing is from Delhi Warehouse and shipping also to our Delhi Branch but bill to address they are showing as our Punjab Office.
Bill Details : Part Cose : Rs.100 + 12.5% tax = Rs.112.5
I consume the part in Delhi to customer and put a claim to Company.
Now Company is giving me claim amount according to Punjab tax, i.e. Company is reimbursing same 14.3% tax to us for the parts consumed in delhi also. How we will put this in books
Asked 7 years ago in VAT
Thanks Rohit for your answer,
I have a follow up question :
For First Question:
Can we regularly put the warranty claim entries as Purchase return ? Till how much time we can return the goods in books ? Suppose we purchase part in January 2016 , can we put purchase return in books in January 2017 , i.e. next financial year ? If yes , then Ok otherwise please post solution
For Second Question :
Will it be a problem for company or for us ? If for a company , how we will put that entry into our books ? If it is a problem for us, please understand Our company is not ready to solve our matters , we have to look for a solution , thats is the reason I posted the questions here.
Asked 7 years ago
I am sorry, but none of the answer is completely satisfactory.
Asked 7 years ago