09 July 2013
Treatment of Sales returns in VAT Calcultion:
Dear Sir,
I wish to know exact treatment of Sales returns from VAT angle. Mr. A sold 12.5% VAT goods to Mr. B on 02/07/2012. Mr. A files monthly VAT returns.
1) However few goods were returned by the Mr. B after more than six months i.e. say on 05/05/2013. How to consider this sales returns during the FY 2013-14? Whether to deduct this sale from 12.5% VAT sales of May 13 to arrive at VAT liability?
2) Suppose these sales are interstate sales of 2% CST and if the ‘C’ forms are issued and the same are returned backed after more than six months then whether to deduct this sale from 2%CST sale of May 13? What will be the impact if ‘C’ forms are already issued?
3) Further how to treat this VAT / CST sale return in May 13 if there is no corresponding same VAT / CST rate sale in May 13 i.e. there is no 12.5% VAT or 2% CST sale.
Whether the accounting treatment suggested for above cases will remain the same for Purchase returns also?
CAclubindia
