My query is in relation to retail trade (retail store chain).We purchases goods against tax invoices in Delhi. While receiving goods in warehouse we face a problem. Suppose in invoice 100 items are mentioned however only 80 items are received in actual. Then while making goods received note against such invoice, whether we should book ivoice with total value of invoice and then issue purchase return against that or if it is allowed under VAT rule can we after receiving goods make cutting on invoice and book GRN with net quantity received and accordingly book vat . In this case the value of Vat as per invoice will be different from Vat as booked in GRN. What exactly we should follow while booking GRNs with invoices.
VAT Act / Rules made thereunder (irrespective of the State) envisages (a) Issuance of Tax Invoice on full Qty. despatched and (b) Subsequently raising credit note on the customer to the extent short received / rejected by the customer.
Hence, taking full credit and subsequently reversing credit to the extent rejected or short received is the correct procedure. In this case, even the full bill value has to be credited to the Vendor's a/c.
However, if you are able to get a credit note (in the same month / immediately by a scan /fax followed by original) from supplier), you may take only the actual input credit.
In either case there is no violation of the credit facility. Whichever route is hassle free from process / work / convenient point of view, the same can be followed.
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