VAT recievable

[Former Member]

After my sales i've done the billing and received the money for eg for 1 item Rs 100 and Rs 12.5 as VAT now when i do a return sales and when i raise a credit memo will the VAT amount will be come seperate or tat i've tell my customer to forego 12.5

[Lakshmipathi]

If the returns is within 6 months from the date of original sales invoice date, then you can take credit of VAT. Otherwise, you cannot take credit but to show in expense account.

thanks

G. Lakshmipathi

[former_member188076]

Hi

As I am aware, when you are charging VAT to customer while selling the material, you must also give credit of VAT amount when taking a return of material.

This is very much similar to Newton's Third law - means for every action there is equal and opposite reaction.

So when you charge while selling the material you must give credit while taking the sales return.

Regards

Amitesh