My Query: our firm is engage in catering business, so purchase variety of Goods. Now there is Local purchase of rice from Shopkeeper who sells grains & General items. under which head i.e pur from RD, or pur from URD should i enter.
29 January 2012
The merchant from whom the purchases are made must be issuing you a tax invoice. Should he be a registered dealer the purchases shall be accounted as local purchase from RD else the same shall be accounted as local purchases from URD. Please note that should the purchase be of taxable goods from URD you shall be required to first discharge the tax on purchase and claim the credit on sale of the same.
CAclubindia
