Short qty material receipt

pashya1972

In case of material short received following procedure has some issue.

1. Pass the Invoice as per Receipt qty but in case of excisable invoice since the vendor has paid the full excise amount for which cenvat credit can be available. and vendor may raise objection for the short payment of excise.

Is there any another method? e.g. book full invoice and raise debit note etc

Prashant

ritesh.singh

I think there should be no question at your end. this is the responsibility of the vendor to send you the correct invoice.

though you can do the debit note if do not want to bother the vendor.

ssingla

ritesh.singh wrote:

I think there should be no question at your end. this is the responsibility of the vendor to send you the correct invoice.

though you can do the debit note if do not want to bother the vendor.

There is no question of botheration as the procedures of the excise laws are clear in this regard. The vendor needs to pay the excise duty on the quantity sold.

Normally the procedure adopted is to book the full quantity and then raise a debit note for quality/rebate. The quantity is not mentioned on the debit note else there will be excise liability. Though this is not the recommendation or written anywhere in the law but the custom which I have seen in lot of industries.

ritesh.singh

There could be two cases
1. Vendor sending less qty and can not complete order.

2. Vendor sending complete order but some qty rejected.

in the first case vendor should not send the invoice for the total qty. though in the second case it can. In First case we are not liable to pass vendor any excise duty.
Though in second, case we may have to pass the debit note if do not want to continue with the order.

ssingla

ritesh.singh wrote:

There could be two cases
1. Vendor sending less qty and can not complete order.

2. Vendor sending complete order but some qty rejected.

in the first case vendor should not send the invoice for the total qty. though in the second case it can. In First case we are not liable to pass vendor any excise duty.
Though in second, case we may have to pass the debit note if do not want to continue with the order.

You need to understand the question. The problem is that short material has been received then the quantity mentioned in the purchase invoice.

ritesh.singh

ssingla wrote:

You need to understand the question. The problem is that short material has been received then the quantity mentioned in the purchase invoice.

How is this possible. customer is not responsible for any mistake in the invoice from the vendor. if qty received is less then the qty invoiced then honestly we should either tell the vendor about this and ask for the correct invoice instead of doing the reversals at our end.

ssingla

ritesh.singh wrote:

ssingla wrote:

You need to understand the question. The problem is that short material has been received then the quantity mentioned in the purchase invoice.

How is this possible. customer is not responsible for any mistake in the invoice from the vendor. if qty received is less then the qty invoiced then honestly we should either tell the vendor about this and ask for the correct invoice instead of doing the reversals at our end.

I don't think that is a option. You cannot modify a invoice once it is printed (Law does not allow this). Another option is cancellation of the old invoice and preparation of new invoice but that again is not acceptable to tax authorities. Even if we try to do that it will mean material will be lying in the premises without any invoice (time taken to cancel the old invoice and receipt of new invoice). What will happen to the inter state purchase where the bill might takes days to reach :?:

ssingla

ritesh.singh wrote:

ssingla wrote:

You need to understand the question. The problem is that short material has been received then the quantity mentioned in the purchase invoice.

How is this possible. customer is not responsible for any mistake in the invoice from the vendor. if qty received is less then the qty invoiced then honestly we should either tell the vendor about this and ask for the correct invoice instead of doing the reversals at our end.

We are not the people who will decide it. The onus lies on the customer to define the way he do his business within the boundary of law.

ritesh.singh

ssingla wrote:

I don't think that is a option. You cannot modify a invoice once it is printed (Law does not allow this). Another option is cancellation of the old invoice and preparation of new invoice but that again is not acceptable to tax authorities. Even if we try to do that it will mean material will be lying in the premises without any invoice (time taken to cancel the old invoice and receipt of new invoice). What will happen to the inter state purchase where the bill might takes days to reach :?:

That is what i am trying to say.

We can only stop this with the Stringent Business process....

ssingla

That is not something which gives the solution. The business managers have to decide on that.

I think we are going off-topic so lets end this here