Pakage vendors, Other Topics

[Sanjay Vasava]

Dear Sir,

We given a contract to party with material (like trunkey project).

He started material supply, party is pakage vendor, we are not made GRN - Goods Receipt Not. We checked only quantity. And with proper documents we are processing for further payment.

In this case without GRN how can release payment? How can take CENVAT Credit? What is entries in books? Please suggest.

Thanks & Regards,

Sanjay Vasava

Posts / Replies

[YAGAY AND SUN]

When it is a turnkey project, then, payment is always made on the basis of completion of work and on the basis of running bills. Your project head shall certify that how much work has been completed, shall forward the bills to accounts department and at the end of the project it shall be capitalized in the books of accounts after getting the PBG etc.

[YAGAY AND SUN]

for details please check Construction contracts: Ind AS 11  

[Sanjay Vasava]

Sir,

We are given a contract to party for supplying of boiller materials & Same party will be doing fabrication, installation, and other services.

Our party is started of material supply, my superior has suggested to me dont made GRN for pakage vendor. without GRN can I book an entry in system or books? How can do CANVAT credit entry? We already paid one payment to party. But accounting entry is pending in our books.

Please suggest.

Sanjay Vasava

[Ganeshan Kalyani]

Sri Sanjay ji, please post new query in New issue id to get fool proof reply from the experts.

Sir, GRN is a document which proves that you have received the provided material into the factory or site location, as the case may. Companies generally prepare POs and against the same the receipt of ordered material is knocked off against the PO to have control over the receipt of the goods. The GRN register is a valid document to prepare your return, complete assessments and to satisfy your internal auditor etc.

In the absence of the same how would you establish that goods have been received by you and eligible credit has been taken. Thanks.

[MUKUND THAKKAR]

please genrate GRN with specific name likes GRN for Boiler material.and follow the guidence given by Sh. Ganeshan Kalyaniji.

[Sanjay Vasava]

Dear Sir,

It means without GRN (Goods Receipt Note) we cannot avail CANVAT Credit??

Thanks & Regards,

Sanjay Vasava

[YAGAY AND SUN]

Actually, You can the CENVAT Credit by getting the physical verification done and checking with the documents, PO, Payment ledger, General Ledger, TDS certficate etc.

[Sanjay Vasava]

OK Sir.

means GRN is not essential ? (Please Suggest).

Thanks & Regards,

Sanjay Vasava

[MARIAPPAN GOVINDARAJAN]

GRN is not essential for taking and utilizing CENVAT credit.

[Ganeshan Kalyani]

Dear Sanjay ji,

GRN is not essential. Invoice is necessary for taking credit. But what is the proof to substantiate that goods against that invoice is received, it is the GRN i.e. Goods received note. Hence indirectly it is important. Thanks.