Accounting treatment for penalty paid under sec 129 (3)
This query is : Resolved
22 June 2021
Sir,
I want to state that my client has sold goods without invoice and goods was intercepted during transit. A.O. imposed penalty as 100 % of due tax and 100 % equal to tax as penalty under sec 129(3).
Now, i want to know, whether i can issue taxable sales invoice after releasing goods from officer and pass on credit to the buyer or not?
Whether buyer is eligible to take ITC of such goods?
If i can not issue taxable sales invoice, then what accounting entry we can pass for such type of sale?
I want to state that my client has sold goods without invoice and goods was intercepted during transit. A.O. imposed penalty as 100 % of due tax and 100 % equal to tax as penalty under sec 129(3).
Now, i want to know, whether i can issue taxable sales invoice after releasing goods from officer and pass on credit to the buyer or not?
Whether buyer is eligible to take ITC of such goods?
If i can not issue taxable sales invoice, then what accounting entry we can pass for such type of sale?
22 June 2021
Yes you will have to raise invoice and the buyer will be eligible for credit subject to section 17
23 June 2021
Thansk Sir,
Further, i want to ask, what is accounting entry for penalty paid (4000/- as CGST and SGST Tax and 40000/- as penalty) under sec 129(3).
The sale of goods is related to other state, then i have to issue a new sales bill with IGST tax to the consumer, and pass on IGST credit to the consumer.
Further, i want to ask, what is accounting entry for penalty paid (4000/- as CGST and SGST Tax and 40000/- as penalty) under sec 129(3).
The sale of goods is related to other state, then i have to issue a new sales bill with IGST tax to the consumer, and pass on IGST credit to the consumer.
23 June 2021
Penalty will have to be expensed and paid by bank
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