advertise
advertise
Home > Experts > VAT > input tax credit changes in rajasthan vat rules


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


input tax credit changes in rajasthan vat rules (VAT)

Report Abuse
This query is : Open


( Author )
31 March 2011

guys i am confused as to how to implement the changes in sap do guide me out on the article i made for the changes if any

New Scenario To be tackled in SAP ( Due to Amendments in the Rajasthan Vat Rules)
Amendment
Amendment in Rajasthan Vat Rules applicable from 1 April 2011 with regard to Change in the Method of Input Tax Credit on Inputs and Capital Goods as follows :-
1. Vat credit of Input shall be taken in the quarter in which the date of invoice falls even if the receipt of goods is spread over different Quarter.
2. Input Tax Credit in respect of Capital Goods purchased will also be allowed in the same manner.
3. Input tax Credit on capital goods will be required to be carried forward till the first sale of goods manufactured from that Capital goods.
Possible course of action
The possible course of action as I see to it is as follows:-
1. For the purpose of Vat Return and Vat Credit we need to arrange the Vat Invoice quarter wise by Correlating the Date of Invoice with the Quarter.( For Vat07 and Vat07A Purpose)
2. For Vat Invoices Billed in the Quarter end and which are received physically after Quarter end the following will be the accounting procedure:-
A) On the date of receipt of the Material and Bill the entry will be passed in the same manner as it is presently followed except that in place of Debiting Vat Credit on Local purchase we will Debit the New A/c named as Provision for Vat credit on local Purchase.
B) Simultaneously on the Vat Invoice date we will pass the following entry :-
Vat Credit on Local Purchase A/c Dr.
Provision for vat Credit on Local Purchase A/c Cr.
C) The effect of the same will be that Provision of Vat A/c Will be Squared up.
3. For Capital Goods Purchase on Quarter End and received after the Quarter, Entry will be passed as follows:-
Capital Goods A/c (Dr)
Cenvat A/c (If applicable Dr)
Provision for Vat Credit on local purchase A/c (Dr)
Supplier A/c (Cr)
(If the Invoice date is Quarter end and Capital goods are physically received after the end of Quarter, this entry will be passed on the date when the bill will received in account for posting after the physical verification of the same and after passed by the Competent Authority.)

Simultaneously the Back Date entry will be passed on the Date mentioned in the Vat Invoice as follows:-

Vat Credit on hold A/c (Dr)
Provision for Vat Credit on local purchase A/c (Cr)

*If the alternative option mentioned below at point no 4 is opted one more entry will be required to be passed:-

Vat credit on local purchase A/c (Dr)
Vat credit on hold A/c (Cr)
(On the date of posting of the voucher in accounts for transferring the vat credit on hold A/c posted on quarter end to Vat Credit on Local Purchase A/c)
4. For capital goods purchased on other than the Quarter end and received in the same Quarter of purchase the entry will be as follows:-
Vat Credit on Hold A/c (Dr)
Capital Goods A/c (Dr)
Cenvat A/c (If applicable Dr)
Supplier A/c (Cr)
(On the date when the Voucher is received for Posting in accounts after Goods being Physically received and after passed by Competent Authority)

On month end the Following entry will be Passed after verification of the Stores Statement (for capital goods that are issued):-

Vat credit on local purchase A/c (Dr)
Vat Credit on Hold A/c (Cr)
Alternative option available is on purchase of the said Capital Good we can pass the following entry :-
Vat Credit on local purchase A/c (Dr)
Capital goods A/c (Dr)
Cenvat A/c (if applicable Dr)
Supplier A/c (Cr)

On month End we can pass the following entry for the Capital Goods remaining in stores:-
Vat credit on hold A/c (Dr)
Vat credit on local purchase A/c (Cr)






Previous

Next

You need to be the querist or approved CAclub expert to take part in this query .


Click here to login ( Members Login ) now


Similar Resolved Queries :








submit










Quick Links





back to the top