Legal documents

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2013 I am a young business man in Trivandrum of age 21. I have started a partnership firm with 4 of my friends.We are the stockist of a new packaged drinking water company in trivandrum. being new to this field we are confused about the legal documentation procedures of sales. I wish you could give me a light on the below listed questions.

1)what are the essential documents(accounting books) to be kept in the office that are mandatory by law? Do this book have any specified format?

2)we have taken sales tax registration and have TIN number but we face this small difficulty. our parent company gives us the product for 10 rupees per bottle and we sell it for 15 rupees to the retailer. the parent company has said that they will pay the sales tax up to 10 rupees and the rest for 5 rupees only we have to pay. I have seen other firm bills who are parallel to us and they have shown full vat tax from 0 itself. So how can we build the bill?
Is it necessary to show the VAT tax figures in our bill?
Is there any specified format for the bill?

Pramod Pillai

Pramod Pillai (Expert)
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12 February 2018 Hi.
Basic books are cash book,ledger,Invoices,expense vouchers,sales register,purchase register etc ... These are basic accounting books and it has its own formats. You can buy preformatted books from the market.
On your second question , yes you can claim input tax . Wen ur parent company bills at Rs.10/- they will charge charge on the value they taxed.When you bill at Rs.15 you calculate tax on 15 and collect tax .When you pay tax to the department you deduct the tax already collected by the parent company and pay only the difference.
Any doubts please mail me advpramodalpy@gmail.com.