GOODS CAUGHT FIRE

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2011 WE HAVE BILLED SOME MATERIAL TO A PARTY IN BIKANER FROM JAIPUR. GOOD CAUGHT FIRE IN BIKANER AT TRANSPORTERS GODOWN. KINDLY CLEAR ABOUT VAT IMPLICATION.
EITHER WE WILL CANCEL THE BILL AND TAKE THE INPUT OR SOME ANY OTHER THING.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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11 May 2011 The goods have been sold at you end. So, you need not cancel the bill now. The ownership of goods has been transferred to the party.

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2011 ok, i will cancel the bill. Then what abt the tax input

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Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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11 May 2011 Cancel the bill and show it as goods destroyed by fire. You will get the input tax credit on that. In case of the goods stolen or destroyed, the input tax credit need not be reversed or disallowed.

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2011 Amol ji, i am satisfied with your reply.
Kindly tell me , is there something act/rule for this type of situation.

Pankaj Dhoot
Jaipur

U S Sharma

U S Sharma (Expert)
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14 May 2011 goods destroyed at transporters end, need police FIR, investigation report and more documents as per the satisfaction of your sales tax officer.

Input credit on such goods would get reversed in case of cancellation of invoice.