C form liabililty by buyer

This query is : Resolved

k.r.rajan

k.r.rajan (Querist)
Follow

17 July 2011 sir,

When a buyer receive the ordered goods during the begining of subsequent F.Y. aginst bills raised during closing month of Previous Financial year

1. the C form should be provided to supplier's bill in current year account or previous year account.

2. If we issue the forms admitting the receipt as First quarter account, whether the assessing authority of the seller accept the same or not ?

3. If the buyer adopts the purchase in current year and can they issue forms treating it as fourth quarter transaction of PY?

please clarify

U S Sharma

U S Sharma (Expert)
Follow

17 July 2011 usually the buyer has to record the bills in the quarter of sales made by seller, and record the stock in transit.

on actual receipt the transfer the goods from stock in transit to factory.

it will help a lot for tax formalities.