C forms issue

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2012 PL ANSWER MY QUERY.
MY QUERY IS IF I AM PURCHASING MATERIAL ON 31ST MARCH & SUPPLIER IS ISSUING INVOICE DT 31ST MARCH BUT WE RECEIVE THE MATERIAL IN APRIL.
NOW SUPPLIER IS DEMANDING C-FORM IN JAN-MARCH QTR BUT OUR BOOKS SHOW THE RECORDS IN APR-JUNE QTR.

IN WHICH QTR WE SHOULD ISSUE C-FORM.

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)
Follow

21 February 2012 As per my knowledge you should also book purchas as per Inovice date. and issue C form for Jan -March.

Logic for that is the supplier has to produce C Form to dept. for that year only in which the Sale is made.

Message likes : 2 times

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2012 But if the supplier issued invoice on 31st March & we recd material on 1st april. then we cannot enter the purchase in 31st march.
In this case what would be the solution?

Upgrade to CAclubindia Pro. Subscribe Now!

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

21 February 2012 C forms will be issued based on the invoice date. even you book the purchase in April and you cannot apply C form for April-June qtr since the invoice date pertaining to Jan-March qtr.

solution can be book the goods in transit under purchase and show in 31st March, in April you can reverse the Goods in transit and book the actual purchase

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2012 Thanks Mr Krishan. Tell me one more thing if we had not shown the purchase in March qtr return then also can we issue of C-form in March Qtr?

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)
Follow

22 February 2012 No, if you have not shown OMS puchases you will not get C Form for that qtr. The Necessary condition to get C Form is there must be OMS purchases and the commodity shoud be mentioned in RC.

If you want C form you will have to file revised return showing OMS Purchases and then get C Form.

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2012 Sorry Mr. Pawan My be i am wrong but as per Mr. Krishnan we can issue C-form only on the basis of Invoice date. So my question is if we have invoice date is 31st march and we entered the material in our books on 1st april then the same would be not be shown in Jan-March qtr return. In this case what would be the consequencies. Can we issue C-form in Jan-March Qtr or not?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

22 February 2012 Hi,

it is very clear., without showing purchases in your VAT return , you can apply C form at all. if you are accounting invoice on April then you cannot apply C form during Jan-March qtr. so i am suggesting to go for book the purchases and show as goods in transit in March itself.

Upgrade to CAclubindia Pro. Subscribe Now!

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)
Follow

22 February 2012 No you can not issue C Form for Jan -March if you accounted the purchase in April.

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2012 So pls guide what is right way?
As supplier issued invoice in March & he entered sale in march itself so he is demanding C-Form in Jan-March Qtr.
But we entered purchase in April so we can issue c-form in Apr-june qtr.

How to resolve this issue?

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)
Follow

22 February 2012 As mentioned by CMA Rameshji , you have to account for Purchases in Jan -March as Goods in Transit. And then reverse transit entry and Make Purchase Entry . Revised the return and then apply for C Form.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

22 February 2012 Book the purchase entry in March and show in the VAT return March itself. Since the goods not yet received in March 31, so you cannot show stock on 31st March because goods received in April only., you can show the goods in transit account on 31st March
You can apply the C form for Jan-march qtr only. For the purchase since you shown the purchased in VAT return.
In the April after received the goods. You can reverse the goods in transit entry and book the stock. It wont effect your purchase ledger as well as VAT return.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2012 Dear Ramesh G thanks for your answer. But what if we are not aware about the purchase on 31st march and we recd the goods on 1st april and again we are not able to book the same in back date? in this case .......?

Querist : Anonymous

Querist : Anonymous (Querist)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

22 February 2012 Generally people are in accounts will be taken care this. Due to closure of the year. In case unaware, VAT return has to be revised for enable to apply C form.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!