Tax rate changes effect on purchase order.

This query is : Resolved

sadasiva (Querist)
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30 March 2013
Dear Experts ,

There is a Purchase Order as per date:01-02-2013 includes
material rate:2 per unit
quantity: 100
tax rate:12 %

invoice also raised on 05-02-2013.

After 28-02-2013 new budget released and tax rates are changed from 12% to 14%.
and we want to return the stocks to the
vendor on 10-03-2013 means after budget.

my doubt is which rate of tax % we need to
consider to return the stock,
tax rate as pet PO or new tax rate as per budget?

please clarify my doubt.

Thanks
sadasivarao

VARUN MAHAJAN ADVOCATE

VARUN MAHAJAN ADVOCATE (Expert)
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01 April 2013 You are returning the stock nit selling out the goods
Tax will be @12 only

sadasiva

sadasiva (Querist)
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01 April 2013 Mr. Varun Mahajan ,
Thanks for your reply

if we return the same stock with reference to invoice,will vendor accept the new rates of tax .
Because,
Purchse Order price is =240/- as per old rate.

after changes in tax rates it is =248/-

will vendor accept the this rate?

Thanks
sadasivarao

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VARUN MAHAJAN ADVOCATE

VARUN MAHAJAN ADVOCATE (Expert)
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02 July 2013 YES THE VENDOR WILL ACCEPT ONLY IF YOU FOLLOW THE ACCOUNTING PROCEDURE OF ISSUIG CREDIT NOTES AND DEBIT NORES