Free gift scratch guard on sales
This query is : Resolved
30 August 2013
I am in manufacturing industry of home appliances. we are introcucing a scheme where we are issuing scratch guard on every sale..we sale to dealers. In this some times there are also free products offered, so how do we account for these free goods as the stock will get reduced and how to bill our dealers considering their accounting too..
Kindly let us know the Tax implications on these..
Kindly let us know the Tax implications on these..
30 August 2013
There is no need for seperate accounting of additional items offered along with the main product.When an extra item is included along with sale(may be free or gift or scheme)the purchase a/c goes up to that extent and profit is affected. You may add to these offers in the packing list etc....... mjk
02 September 2013
Sir,
I still have the question how to reduce the stock..as the same will be reduced when it is to be given with main product.
Currently we are following scheme discount practice i.e. we bill for 11 items to dealer and give scheme discount for one product which is given free of cost.
2nd option is credit note but that will be considered as income of dealer..which he wl not accept.
How to bill the dealer considering tax implications..
help me explaining with an example.
I still have the question how to reduce the stock..as the same will be reduced when it is to be given with main product.
Currently we are following scheme discount practice i.e. we bill for 11 items to dealer and give scheme discount for one product which is given free of cost.
2nd option is credit note but that will be considered as income of dealer..which he wl not accept.
How to bill the dealer considering tax implications..
help me explaining with an example.
02 September 2013
Show the additional items sent along with sale in the delivery challan or packing list and based on such document you can make entries in the stock a/c...mjk
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