help required regarding goods return...
pharmaceutical distributor (whole-seller) selling medicines to around 200-250 medical shops in mumbai..
distributor receives on regular basis expired medicines(goods) return from medical shops.... the distributor returns them to manufacturer...
( expiry period of medicines is one year / two years... )
as per maharashtra vat.. the period of return of goods shall be six months from the date of purchase or , as the case may be, the sale.
that means any goods sold and returned within six months will be allowed to be treated as returns of the month in which goods are returned.
suppose a phamrmaceutical distributor sells 100 pkts of a medicine to a retailer... if not sold .. the retailer would return the medicines after expiry
( min 1 - 2 years ) to distributor .... can he claim them to be goods returned for that period .... as medicines are seldom returned within six months..
distibutor will return these medicines to manufacturer...
how to give effect of goods ( medicines-expired ) returned on regualr basis for vat ..????
Is this right >>>> suppose for a distibutor total sales for april-sept are 15 lacs and goods returned ( medicines expired ) from retailers during the period are 5 lacs then net sales = 10 lacs.. on which vat has to be paid..
and total purchases for the period are 20 lacs and goods returned ( expired / damaged ) to manufacturer by distributor are 5 lacs then net purchases= 15 lacs .. on which setoff will be claimed
CAclubindia
