A soya Company purchases Soya Seeds from the supplier and supplier charge VAT @ 4% in MP. Company makes payment to supplier without VAT and issue TDS Certificate for the VAT Amount as per Section 26-A of M.P. VAT Act.
Summarize position is as follows:

Purchase Value 20 M.T. @ 17,000/- per M.T. = 3,40,000/-
Add: VAT @ 4% = 13,600/-
Total Purchase Value = 3,53,600/-

Company is making payment of Rs. 3,40,000/- to supplier and issuing TDS certificate of Rs. 13,600/- to supplier.

What will be the accounting Entry?

Is the debit note amount added to purchases to arrive at total purchases for a period? why?

Are debit notes & credit notes issued simultaneously i.e. if A has to take 1000 rs from B, he will issue a debit note to B. Will B also issue a credit note to A to complete the transaction?

then what will be the parallel entry in B a/c

Hello to all,
I want to know about the accounting for the Tax collected at source.
the person collected Tax at source and deposited that with the Govt. so what would be the accounting entry for that.

What is the purpose of keeping undisclosed reserve by banking company? How it is created? Is it legally allowed as it is not True & Fair picture of Financial Statement.What is the second effect of Undisclosed reserves.

WE REQUIRE A COMPREHENSIVE FORMAT PREFERABLY IN EXCEL FOR:

1)FUND FLOW STATEMENT
2) CASH FLOW STATEMENT
3) CMA DATA
WHAT ARE THE RATIOS PERTAINING TO BANK FINANCE.

REGARDS

NARESH KOTHARI

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