difference between the sales turnover as per Excise invoices and VAT return.

[VINOD KUMAR]

Respected Experts, Good Evening to all. Sir, there is the difference of Rs. 249598 in the sales turnover as per excise invoices and VAT return. Sir, how to reconcile the excisable turnover. What may be the possible reasons. Pl. Reply. Thanks and regards sir.

[Rajagopalan Ranganathan]

Sir,

Normally sales turnover includes excise duty and cesses payable along with transaction value. Please check whether the difference of ₹ 2,49,598 represents the excise duty payable. Otherwise you to recheck the invoices issued by you to fix the difference provided you are using the same invoices to calculate assessable value for excise purpose and sales turnover for Vat purpose.

[Kailash Singhal]

d/s

i give the certain reasons which are causing the difference between sales turnover and as per turnover as per excise :-

1. as per excise person is clearing goods on the basis of maximum retail price where as his commercial price is less due to transportation charges , agent commission , state vat and entry tax and profit of chain of sellers etc

2. manufacturer is a deemed manufacturer and all other aspects are applicable as stated at point no. 1

3. manufacturer is clearing job work goods on full payment of duty and raising commercial bill for job charges only

4.manufacturer has returned goods to its supplier i.e. purchase return

5. manufacturer has goods to other party on loan basis

6.manufacturer has send goods on job work on full payment of duty

7. manufacturer has given rebate and discount after excise value

regards

ca kc singhal , silvassa -- 9824102121

[Mahir S]

Yes, agreed with both above replies. Mostly, it has to be w.r.t. purchase return or rejected goods received and subsequently cleared.

You may seek advise from your C.A. in the matter.

AI Summary

Sales turnover reconciliation: identify excise duty inclusion, invoice mismatches, returns, jobwork and post sale adjustments to reconcile VAT. Difference between sales turnover per excise invoices and VAT return must be reconciled by checking whether the variance represents excise duty and cesses or results from divergent invoice treatment. Verify whether excise values are gross (including duty/cess) and confirm invoice continuity. Typical causes include MRP versus commercial pricing, transportation/agent charges, purchase returns or rejected goods, job work or loaned goods, deemed manufacture or duty paid job work, and rebates or discounts applied after excise valuation.