09 June 2014
An Excise dealer has issued invoice to it's customer. However the goods are issued as free samples.
The dealer has issued an invoice showing net amount Rs.0.48 and vat@ 5% Rs.0.06. In the same invoice the dealer has shown excise duty of Rs.840, however the total bill amount shown is only Rs.0.54.
Can the purchaser take benefit of the excise duty shown in the bill, even though the amount of excise duty is not included in the total bill amount?
What accounting treatment should be given for this transaction in the books of: 1. Selling Dealer 2. Purchasing