Answer Posted / keyul gandhi

In the Books of A

B A/c Dr. 100
To, Cash 100

(C is just a third party, Receiving the money on hehalf of
B. As in the books of A there is no out standing against C
but it is against B)

In the Books of C

Cash A/c Dr. 100
To, B A/c
(In ths books of C it must be receivable from B, so B must
have said to A, that the money which you owe to me please
pay directly to C

In the books of B

C A/c Dr. 100
To A A/c 100
(paid by A to C)

We have a registered dealer under APVAT Act. Our company is manufacturing & marketing of seeds. seeds exempted under vat. recently we have purchased machinery for our new plant construction, against c form. now sales tax dept.not giving the c forms, because our final product is exempted, we are not eligible for c forms. kindly clarify.

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