26 April 2014
WHILE MAKING PAYMENT OF VAT IS VAT IS TO BE PAID ON PURCHASE PRICE PLUS EXCISE DUTY AMOUNT.IF SO THEN THERE IS DOUBLE TAXATION (VAT ON EXCISE DUTY).WHAT WILL BE THE ACCOUNTING ENTRIES IN BOOKS OF BUYER & SELLER FOR ENTIRE TRANSACTION INCLUDING PURCHASE/SALE PRICE,VAT & EXCISE DUTY.
PLEASE HELP IN THIS REGARD. I HAVE A LOT OF CONFUSION REGARDING THIS MATTER.
27 April 2014
vat is to be paid on the following a.value+excise duty+cess2%+cess1%+freight
on purchase and and as well as sale also the vat paid on the above total amount it is not a double taxation central excise duty is reflects to central government and vat is state taxes only you have entered the same as follows
on purchase entry purchase raw material a/c - DR excise duty & cess a/c - DR VAT A/c - DR to party A/c - CR
on sale entry customer a/c - DR Sales A/c - Cr excise duty & cess a/c - CR VAT A/c - CR ok
CAclubindia
