entry should be passed on 18 according to accounting standard 1. legal form is not necessary. If you get possession and delievery of computer, you can show purchase. 

Other thing is that, you can't claim any vat credit for purchase of fixed asset. If a person is dealing with computer sale purchase business, you can show computer as stock and take credit of input vat paid. In that case you can't claim depreciation on stock.

Fully agree wid CA Tarannnum.

Dear Khatri ji as i think vat input is also available on capital goods  and credit od tax paid on capital goods will be apportioned in 36 month period may be different state wise...

Check the list of capital goods on which credit can be claimed under respective vat laws. Different states define capital goods differently.

yes this is right....

Dear Tarannum

If you say that we book purchase on the day we receive goods irrespective of whether we have received invoice or not, then i have following question for you:

Please consider the date of receipt of goods in March say 31 mar and receipt of invoice on 2-Apr

1. Will you give effect of taxes on the day we receive goods?

2. When does seller write invoice? What is the relevance of invoice date?

3. Does sale tax gets attracted on the basis of invoice date or the day we receive goods?

4. What is the Receipt Note in Tally?

Thanks

Dear Shivani

one of the accounting concept is that "Substance over form" which means u must make a entry on the basis of transaction or envent rather than just on the basis of legal form.. so

1) as for accounting concept u must make a entry as and when goods received on the basis of challan etc.as a supportive documents

2) and sales tax will be attracted on the invoice date as seller will also have to issue the invoice on the basis on challan as supportive documents available with him.

3) and as the last date of filing of sales tax return is 20th of the following month or quarter so there is 20 days gap so its your responsibility to get the invoice before filing the return from the seller.

yes exactly sandeep

but what will be the entry when we receive goods and in voucher will you pass that entry in tally

Dear Members

Please answer following point-wise.

1. What are the documents involved in a sale considering transport by road.

2. When does a seller prepare invoice?

3. When does a seller send invoice?

4. How many copies of documents are involoved in sale process and who gets which copy?

5. What is delivery note, receipt note, rejections in and rejections out vouchers in tally?

6. Is it possible to receive goods without invoice.

7. If we receive goods on 31-mar without invoice, what entry will be passed in our books as surely we have goods in our custody.

8. What entry will we pass on the day we receive invoice say on 5 apr? Will we consider the date of receipt of invoice or the date of invoice mentioned in invoice?

9. When will we give effect of taxes involved in sale? On day we receive goods or day we receive invoice or the date of invoice mentioned in invoice?

Thanks

Shivani

shivaniadream @ gmail.com

Dear Shivani,

Here is your reply point by point wise.

Considering the facts discussed earlier regarding your queries. I am replying these in that context only.

1. Its not necessary what document should transporter would carry. Documents content differ based on the facts as transaportation are made within the state or between states or to any free trade zone. But the most important thing is that it will present you some documentory evidence stating that delivery is made to you, generally called delivery note or material issue note. In general when material is issued from seller godown or stores 4 issue slips are prepared one is for store keeper, one is for security, one is for driver or delivery man and last one is for customer. 

Again it's not necessary that every where there will be practice of having 4 issue slips is followed some will follow issue of 3 issue slips differciated with colors white, yellow and pink.

In short, We can say that with delivery of material you will get some document indicating material has been received by buyer and buyer also has to acknowledge same for seller prospective.

Dear Shivani

Coming back to your questions.

2. It's upto seller when he prepare invoice. Basically Invoice is the primary document for transfer of property but invoice doesn't suffix sole criteria that property of goods has been transferred. There are certain more criteria which determine transfer of property.

Not going in depth of invoice Seller can prepare Invoice along with transfer of material at earliest.

3. At earliest, Seller can also send Invoice along with delivery of material. Again this is specifically related to your case but in some cases such as construction contracts Invoices are also raised prior to completion of contract.

4. I guess this query is explained in detail in point 1.

5. These are the physical documents which need to send along with material.

Delivery Note: Specify that material is delivered at agreed location

Receipt Note: Specify that material has entered into stock register of buyer

Rejection In: Specify that material rejected by buyer is taken back in stock by seller

Rejection out: Specify that material receive is rejected by buyer after testing

6. Yes, It is possible that you receive material without material and later on you receive Invoice. You can find such practice in any Industry very often.

7. Same entry as posted on 18th April in my previous reply.

8. Same entry as posted on 19th April in my previous reply.

9. As discussed, Here you are talking about Cenvat. Cenvat is charged based on Invoice instead of delivery of material so Cenvat is charged upon receipt of Invoice instead of receipt of material. Respective credit availment is according to receipt of material.

The only thing I would like to mention that I replied your queries in very genric ways without going to depth of situation, just to avoid further confusions.