Sales return entry & vat adusment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2016 We are FMCG distributor of Hindustan Unilever Ltd. we purchase Goods from HUL for Ex :- 1 dove soap for rs 100, (Cost- 90, and tax (VAT) - 10, after 6 o seven month we have returned this material to HUL, at that time HUL gives a credit of Rs. 100 But there are no Tax Adjustment., then what will be the accounting entry for the same ( Debit note entry in our books ), and is there any tax adjusment , that we need to do ???

Please suggest Me

Rupesh Jain

Rupesh Jain (Expert)
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27 June 2016 its VAT and you take input when you goods recd form he HUL, then you have to reverse the VAt on recd. of credit note from the HUL, if its CSt then not required, due to CSt not cenvatable.

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2016 But HUL is not adjust any amount of VAT, for that VAT miss match on return has created in previous QTR.

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Rupesh Jain

Rupesh Jain (Expert)
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27 June 2016 when you return the goods then you cannot carry input of vat, for you take copy your invoice with credit note HUL, so your entry will be justify for vat reversel.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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27 June 2016 If HUL has given credit note with separate vat amount then only you can take input vat in you vat return

Rupesh Jain

Rupesh Jain (Expert)
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27 June 2016 we take as you above, but when you have not the stock/goods why we will eligilble for getting the input. some time in HUL like company software not generate the credit note with showing vat a/c but internally they take the input of vat. you cna make question with the concern deptt of HUL. they clear the fact of the credit notes.