19 July 2012
At the time of taking back the stock from the party it is a sales return to you and you will take the same into stock book and issue credit note to the party allowing VAT if any charged in the original supply bill. You will deduct sales return turnover in your monthly taxable turnover thereby you are indirectly claiming the vat from the Government. After 3 months, it is fresh sale and you have to collect vat and remit the same to the Government.
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