Supplementary Invoice

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Rajpreet Singh (Querist)
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06 August 2008 Dear Sir,
A Prop firm raised supplementary invoices in the month of april may 2008, for increase in the prices of steels, the original sales were made in the financial year 2007-2008. My query is whether we can make provision for income related to supplementary invoices in the financial year 2007-08. what is the tax implications whether this income is taxable in the ass. year 2008-09 or in nxt assessement year. As per accounting standards issued by ICAI AS -4 it is an event occuring after the balance sheet date according to that we have to make adjustments in assets and liablilites in the balance sheet for the f.y. 2007-08.
Please resolve my query it ll highly obliged
1. can v make changes in assets & liabilities in the balance sheet as at 31.03.2008 if yes should we make provision for excise receivable as well as per AS-4
2. what are the tax implications whether this income will be taxable in ass. year 2008-09 as per mercantile system of accounting u/s 145
3. can there be any implications under punjab vat act.
Thanks & Regards
CA Rajpreet Singh
2.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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06 August 2008 1.Yes.
2.The tax implication is in the year you are accounting.
3.Generally VAT is payable when you actually raise the invoice. Check up Punjab VAT.