India Localization "Not able to Claim VAT on Purchases" for Finished Goods
In our Business Scenario, Items will be sold to Distributor by purchasing from Manufacturer. We follow the Back to Back order process. VAT is paid on Purchases (ie., Input Tax) VAT collected on Sales (ie., Output Tax) This VAT paid on Purchases to be claimed and settled at period end. Only Net liability to be paid to VAT Authority. Issue: Not able to Claim VAT on Purchases for the below reasons: Item will be same in Purchase order and Sales Order. We cannot classify the same item as Raw material and Finished Goods. As item is not classified as Raw material not able to claim and settle. Is there any Workaround to handle this kind of Scenario |
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