MEMORANDUM OF SALES AND PURCHASE

abhishreshthaa

Abhijeet S
Memorandum of Sales or Purchases

When a registered dealer liable to tax sells any goods of the specified value or more to any person other than a registered dealer, he shall issue a bill or cash memorandum (“cash memo”).


The cash memo should:

1. Be serially numbered

2. Be signed and dated by him or his servant, manager or agent.

3. Contain the particulars as may be prescribed.


He shall keep a duplicate of cash memo and preserve it for a period of 3 years from the end of the year in which the sales took place. If the value of the goods does not exceed the specified limit the dealer shall issue the cash memo, upon the request by the purchaser.


The above requirements may not apply to the following sales:

1. Transfer of property in goods involved in the execution of the works
contract.

2. Interstate sales

3. Exports

4. Sale in the course of imports.


Cares to be taken by the selling dealer or purchasing dealer:


1. Tax Invoice is in the form prescribed by the state(s)

2. Any variation in then requirements by different state(s) area compiled

3. It contains all requisite particulars and details

4. Tax is shown separately

5. It is signed by the authorized person.

6. The registration is in force.

Records

1. Important Records that are to be kept

(A) VAT ACCOUNT

(B) PURCHASES RECORDS

(C) PURCHASE DOCUMENTS TO BE RETAINED IN DATE ORDER

(D) SALES RECORDS

(E) SALES DOCUMENTS TO BE RETAINED IN DATE ORDER

2. Credit and debit notes

Copies of credit and debit notes issued and received should be separately filed in date order under different tax rates.


The record of credit end debit notes should be entered in red and related to the appropriate purchase or sale account. It must be taken account of while adjusting the monthly total of each account.


3. Cash records

Retain all records of your cash transactions including cash books, all vouchers, including petty cash vouchers, all book accounts, and records of daily receipts including cash register rolls.


4. Stock and manufacturing records

These records must be maintained if appropriate to the business. They are essential for VAT accounting purposes.


5. Other records to be retained

(A) Orders and Delivery notes

(B) Job books

(C) Annual accounts including trading accounts, profit and loss accounts and Balance Sheet.

(D) Bank statements and pay-in-slips.



6. Period for retaining of records and accounts

All the specified accounts and records shall be retained for a period of 6 years and made available as and when required by the Commercial Tax Department. There are penalties for failing to maintain the specified records.

 
Memorandum of Sales or Purchases

When a registered dealer liable to tax sells any goods of the specified value or more to any person other than a registered dealer, he shall issue a bill or cash memorandum (“cash memo”).


The cash memo should:

1. Be serially numbered

2. Be signed and dated by him or his servant, manager or agent.

3. Contain the particulars as may be prescribed.


He shall keep a duplicate of cash memo and preserve it for a period of 3 years from the end of the year in which the sales took place. If the value of the goods does not exceed the specified limit the dealer shall issue the cash memo, upon the request by the purchaser.


The above requirements may not apply to the following sales:

1. Transfer of property in goods involved in the execution of the works
contract.

2. Interstate sales

3. Exports

4. Sale in the course of imports.


Cares to be taken by the selling dealer or purchasing dealer:


1. Tax Invoice is in the form prescribed by the state(s)

2. Any variation in then requirements by different state(s) area compiled

3. It contains all requisite particulars and details

4. Tax is shown separately

5. It is signed by the authorized person.

6. The registration is in force.

Records

1. Important Records that are to be kept

(A) VAT ACCOUNT

(B) PURCHASES RECORDS

(C) PURCHASE DOCUMENTS TO BE RETAINED IN DATE ORDER

(D) SALES RECORDS

(E) SALES DOCUMENTS TO BE RETAINED IN DATE ORDER

2. Credit and debit notes

Copies of credit and debit notes issued and received should be separately filed in date order under different tax rates.


The record of credit end debit notes should be entered in red and related to the appropriate purchase or sale account. It must be taken account of while adjusting the monthly total of each account.


3. Cash records

Retain all records of your cash transactions including cash books, all vouchers, including petty cash vouchers, all book accounts, and records of daily receipts including cash register rolls.


4. Stock and manufacturing records

These records must be maintained if appropriate to the business. They are essential for VAT accounting purposes.


5. Other records to be retained

(A) Orders and Delivery notes

(B) Job books

(C) Annual accounts including trading accounts, profit and loss accounts and Balance Sheet.

(D) Bank statements and pay-in-slips.



6. Period for retaining of records and accounts

All the specified accounts and records shall be retained for a period of 6 years and made available as and when required by the Commercial Tax Department. There are penalties for failing to maintain the specified records.


Hey abhi, thanks for providing the memorandum of sales and purchase and i really liked your article. Well, i am also going to share a document where you would find more detailed information on memorandum of sales and purchase.
 

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