My new client is registered with the VAT department Maharashtra.


He had some actual interstate purchases of around 10-11 lakhs in F.Y. 2012-13 but his accountant had done some double entries and is overstated and the the return is filed like that only. Now on checking the past data I have understood that this has happened. The client has very less knowledge about VAT and accounting so didn't understand anything. Even his previous CA has filed the form 704 on the same basis (Wrong entries)even C Forms are issued by the department.


Can anyone please tell me any remedy on this???

SIR

VAT PAID ON PURCHASES - 100000
VAT COLLECTED ON SALES - 200000
VAT BROUGHT FORWARD - 50000
(OPENING VAT)

I PASSED THE ENTRY IN TALLY

1) VAT TAX A/C DR 100000
MVAT O/S A/C 100000

2) MVAT O/S A/C DR 50000
VAT B/F 50000

THEREFORE NET VAT LIABILITY SHOWN UNDER THE HEAD CURRENT LIABILTY IS RS 50000 AND VAT TAX IS SHOWN UNDER THE HEAD DIRECT EXP IN TRADING ACCOUNT RS 100000/-.

I WANT TO KNOW WHETHER THE ABOVE TREATMENT IS CORRECT OR WRONG? FURTHER IF IT IS WRONG PLZ SUGESST A CORRECT TREATMENT.

THANKYOU

1) M/s X is a registered dealer contracting electrical contracts. He purchases materials and supplies and provides services too like erection and commissioning etc.

2. M/s Y is manufacturing company raised a purchase order for supply of materials from M/s X.

3. M/s Y has also raised a service work order on M/s x for erection and commissioning of the above supplied material by M/s x

5. In the above both supplier and service provider is same and raising invoices against the work orders separately

6. M/s Y is paying payments to M/s X against the invoices raised, ie. material supplies separately and service invoices separately

7.in the above, if the work orders are separate ie. for but both service provider/seller and purchaser/service receiver stands same

8. In the above circumstances whether works contract act is applicable if yes upto what extent if not why

by
subrahmanyam GVS
M.Com Dip in Taxation

Dear Sir,

My company registered in UP vat.

A car purchase by company in its head office in delhi but Company not registered in delhi vat. Now comapny sale same old car in delhi to Mr X then what is the sales tax liablility in delhi and also in U.P.

please advice

Thanks in advance

Hi,

I am running an E-commerce portal in Ghaziabad location,want to send a Juicer worth Rs 8000 to West bengal to one of my buyer,but when i am going to dispatched it,they asked me a sales tax form from me.

Problem is i take this item from my dealer as a retail invoice instead of Tax invoice,Please tell me what can i do for dispatched it...

Reply me Quickly....

Dear Experts



We know that declared goods or goods of special importance cant be taxed at more than VAT 5%.



I need to know that will be the entry in case we buy these goods interstate?

Will there be an involvement of C Form.

Will CST rate be 2%?

Please advise.



Thanks

Shivani

shivaniadream @ gmail.com

On 26-4-2011, M/s National Traders received a sales order from Excel Traders, Mumbai for 4 photo copying machines priced at ` 43,000 each. M/s National Traders raised a sales invoice for the said item vide invoice number 012, despatched 2 nos and requested the branch office – National Enterprises to despatch remaining quantity. CST @ 2% was charged while invoicing against C Form. The sale value and CST amount of goods despatched by branch office was reversed on 27-4-2011.



The above is a question given by Tally Solutions in its guidance book and following are the entries they gave:



Entry 1 (Interstate Sale Entry)

Excel Traders 175440

To Interstate Sales 2% 172000

To CST 2% - Interstate Sales 3440



Entry 2 (Reversal of Interstate Sales to Sales Outside the State)

Interstate Sales 2% 86000

To Interstate Sales - Tax Free 86000



Entry 3 (Transferring value of CST to Branch)

CST 2% Interstate Sales 1720

To National Enterprises 1720



My questions are following

I am clear as to the first entry.

But what are they doing in remaining two !!



Thanks

Shivani

shivaniadream @ gmail.com

Dear Experts

Please consider following situations.

1.Interstate purchase of goods AGAINST Form C Rs. 10000. CST rate applicable obviously is 2%. Now we transfer all these goods to our branch in OTHER state.




2.Interstate purchase of goods AGAINST Form C Rs. 10000. CST rate applicable obviously is 2%. Now we transfer all these goods to our branch in OUR state.




3.Interstate purchase of goods WITHOUT Form C Rs. 10000. CST rate applicable will be VAT rate in the state of seller say 12.5%. Now we transfer all these goods to our branch in OTHER state.




4.Interstate purchase of goods WITHOUT Form C Rs. 10000. CST rate applicable will be VAT rate in the state of seller say 12.5%. Now we transfer all these goods to our branch in OUR state.




5.Local purchase of goods Rs. 10000. VAT rate applicable in our state is 12.5%. Now we transfer all these goods to our branch in OUR state.




6.Local purchase of goods Rs. 10000. VAT rate applicable in our state is 12.5%. Now we transfer all these goods to our branch in OTHER state.



I know what will be the entries at the time of purchase in all above 6 cases.

What I need to know is what will be the entries at the time of branch transfer in all above cases and how will we deal with the CST/VAT (paid on these goods at the time of purchase) during branch transfer.




I belong to Punjab and the relevant Act is Punjab Value Added Tax Act, 2005.



Thanks in advance.





Shivani

shivaniadream @ gmail.com

I want to start selling a product in Kerala State and for that I want to open about 30 dealers in different place of kerala and also godown in Kerala for which goods would be transferred from Delhi State.
Should I get all dealers registered under Kvat act? or the registration as only one dealer for all dealer would be Okay.

what is the last date of vat return filling of rajasthan of 3rd & 4th quarter.