ACCOUNTING ENTRY ON PURCHASE FROM UN-REGISTERED DEALER



RAMA CHANDER
watch_later 7 months, 1 week ago

Our company purchases materials from Chennai and the dealers turn over is less than 15 lakhs per year, our purchase will be  RS 30 000/- once in two months, we pay in cash,

what shall be our purchase book entries, cash book entries.

Please clarify,

With regards, 


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1 Answer

Pulkit Sharma watch_later 7 months, 1 week ago
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First point, if you are purchasing from an unregistered dealer who is from Chennai, ask him to take registration as registration is compulsory for person making interstate outward supply.

You are located out of Chennai in that case you have to charge IGST on purchase from unregistered dealer and also make tax invoice on his behalf.

Invoicing is different from accounting.

You can read my article accounting under RCM.


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