Hi,
Thanks in advance.
Can we knock off the sales Invoice amount with Purchase amount, when transaction was type of job work(Sub contracting sales method) with the same party ( Vendor and customer are same) .
For Eg; 'A' Send the Part's through their Tax Invoice ( Purchase ) and IN turn 'B' send the Sales Invoice after Packing (Value Additions) and dispatch to 'A'.
Knock off the sales Invoice amount with Purchase amount
Re: Knock off the sales Invoice amount with Purchase amount
Why is the same person buying and selling something from/to you? Presumably you add something to it.
Does the contract allow net settlement?
Does the contract allow net settlement?
Re: Knock off the sales Invoice amount with Purchase amount
it seems that net presentation is more suitable, either under principal vs agent considerations or consideration payable to a customer
https://ifrscommunity.com/knowledge-bas ... ss-vs-net/
https://ifrscommunity.com/knowledge-bas ... a-customer
What is the commercial/tax/other reason for structuring this transaction this way? Why wouldn't A just pay for the packaging service?
https://ifrscommunity.com/knowledge-bas ... ss-vs-net/
https://ifrscommunity.com/knowledge-bas ... a-customer
What is the commercial/tax/other reason for structuring this transaction this way? Why wouldn't A just pay for the packaging service?