Purchase & sale from same party
MANISH GUPTA
(Querist) 08 October 2013
This query is : Resolved
I AM PURCHASING & SELLING GOODS FROM SAME PARTY.CAN I ADJUST PURCHASE AGAINST SALES TOWARDS PAYMENT.Will where be any problem from sales tax & income tax authorities. THE PURCHASE & SALE OF GOODS ATTRACT VAT.Will i be allowed INput tax credit for purchase of goods. please help me and clarify in details. Can My input vat credit will not be allowed as I purchased from dealer whom I sold goods (different ItemS)
Rajendra K Goyal
(Expert) 08 October 2013
consult your tax adviser and show him all the documents.
malipeddi jaggarao
(Expert) 09 October 2013
You can make adjustment of input credit for VAT purpose but you should have separate purchase and sales bills for actual amounts. As regards adjustment of purchases and sales, the net amount payable/receivable is valid.
