In my Case, The Goods are Exported Abroad and the Importer on that Country clears our goods for further Sale in Exhibition. In VAT Return, The Sale of Goods are shown as per the Custom Invoice Value as and when the Exports take place on a particular quarter.
My Problem lies is that if the Goods Sold are as per Purchase Cost and Sale of those goods depends on the rate we quote to each customer, then how income received from sales will be shown in ITR and Vat Return
For Example:- Mr. "A" Sends goods of Rs. 20Lacs to Country "X" where Importer "Y" clears goods for Exhibition for Mr. "A". Now Mr. "A" is able to sell these good for Rs. 25 lacs. So how "Mr.A" will show the receipts received in VAT Return and ITR. As Sale of Rs. 20 Lacs is already shown in VAT Return at the time the goods were Exported but what about the Excess Rs. 5 Lacs "Mr. A" Received, How will he show in his ITR and VAT Return. Keeping also in mind that he has declared all his Receipts from his Sale Proceeds of Rs. 25lacs in the Custom Authorities.
Await Response from Genius Minds around.. Thank You :)
Can you guide me as what entry is to be passed in Tally for the Excess of Rs. 5 Lacs as the problem is that if my Export Sales as per VAT Return and ITR Return are not same it leads to limited scrutiny at the Income Tax Departements end,which i want to avoid.
Secondly, As Export Sales has no VAT but the Excess Sales has to be showed in VAT Return? How to Solve this Issue?
Thank You for all your Advice.. Can You guide me if there will be any issue anywhere in VAT Return or ITR Return as for the excess Rs. 5 Lacs there is no Invoice as the goods are sold abroad to customers out there?
Secondly when the goods are imported through importer, Can we also Increase our debtors and Increase our sales by showing that the amount to be received in relation to our Export Sales is to be received by the Importer itself?
Can you provide me with a Sample of supplemental invoice for the Exports Sales for the Importer as i am little unclear on the same or i can say that the knowledge of mine in this field is limited as i am unable to find a sample on the web?
Secondly, Can any Issue be raised by VAT Authorities in case of Export Sales regarding why they were shown Less in the beginning or can any issue be raised by any other department regarding the Supplemental Invoice?
10 October 2016
It is like other normal invoice, refer the old invoice No. and say increase in sale value of invoice referred. Submit the invoice to customs authorities and pay any customs duty if applicable. VAT authorities will not question it as VAT is not applicable on it.
CAclubindia
