I purchase a item in oct-11 but physical item was not received and seller also cancel their sale invoice in oct-11 without know us and also purchase dept. fail to know in account so in my account I didn't cancelled the invoice. Now it is come to know this mistake in may-12. So what should I do of this invoice. 1)Should I book purchase return in may-12? 2)Should I book Tax Invoice sale to the same party? 3)Should I Book Retail Invoice sale to the same party? Please know me the proper way reduce this stock item and also know about VAT liability if any penalty to be occur. Thanks. Ashish Bhalara
21 May 2012
Mr A Bhalara, You obtain a statement /letter from your seller with an April,2012 date declaring that such an invoice/sale have been cancelled(so that it is within six months of sale).Take it as sales return received in April,2012.If it is in Karnataka you have file a letter before the LVO seeking his permission to rectify the return of Oct'11.In other states it may not be necessary. Rectify your Oct'11 return on line.Suppose any tax is to be paid due to this amendment pay that tax also with interest @1.5%pm.....MJK
CAclubindia
