Advance Purchase Accounting

[raghunandan raghunandan]

Sir,

Delivery of material during April 2013 is declared in VAT 100 of April 2013. But the Purchase invoice is dated May 2013 with a declaration that material are despatched during April 2013. Seller has declared his sales in May 2013 VAT 100.

I have declared purchase in April 2013 and the seller has declared his sale to me in May 2014.

Pl reply as to how to justify the transaction. The AO is disallowing my purchase.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

VAT reporting mismatch: declaration timing conflict may lead to disallowance of purchase unless dispatch evidence supports accounting. A VAT reporting timing conflict: the buyer declared purchases in April based on material dispatch in April, while the supplier issued a May-dated invoice and declared the sale in May; the assessing officer disallowed the purchase despite the supplier's invoice stating dispatch in April, and no further resolution is recorded.