We are a Pvt.Ltd. company dealing in software sales & services? One of our customer want to replace one product with another product. In this case what should i issue them Debit note or credit note? If your answer is Debit note then what type of VAT should I select in it? While booking sales I selected Output Vat 5% then what type of VAT should be selecetd while nooking stock replace? Should I select output VAT ? What would be effect pf this transaction overall?
3 Replies
ashish gupta
( student)
(1922 Points)
Replied 10 May 2012
Pass two separate entries.
1 for sales return i.e. reverse the earlier entry passed
and 2nd for fresh sale of other product with the applicable VAT rate
V K Bajaj
(Accountant)
(1540 Points)
Replied 14 May 2012
If the price of replaced item is greater than the received back one then you can raise invoice. The difference of two will be your sales amount and charge applicable VAT on this amount.
In case the amount of item received is greater than the replaced one. Then first issue credit note for the goods received back by taking the figures (of sale and VAT) as charged in your Invoice. Then issue the Invoice for the goods replaced plus applicable VAT.
contact @ vkbajaj.co.in
Sonu Kumar
(Account Manager)
(665 Points)
Replied 15 May 2012
I think Mr Ashish Gupta is Right, 1st Made a Entry for Sales Return and After that Make a fresh Entry for Sales of New Product.
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