Construction bill entry

This query is : Resolved

shalini (Querist)
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16 June 2019 Appreciate, if you could guide me how to make entry of following work construction bill received from the contractor in U.A.E.

Agreement Amount = Dhs. 1,000,000.00
Advance Received - Dhs. 150,000.00
Work Period : 4 months

Work Done upto = 173,280.00
Less : 15% Advance = 25,992.00
Less : 15% Retention = 8,664.00
Net Amount for this Bill = 138,624.00

Vat @ 5%
5% vat for advance 150,000 = 7500.00
5% Vat for bill No.1 of 138,624.00 = 6,931.00

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 June 2019 Work in progress(capital) dr 173280
Advance(15%) cr 25992
Retention money(5%) cr 8664
Bank account cr 138624

Propose VAT entry based on VAT laws of the country.

shalini

shalini (Querist)
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16 June 2019 thank you so much for your quick reply. how about showing the entry of vat ? here it has been charged vat @5%. whether i need to pass another entry for showing vat ?whether i need to take into a/c the vat for the advance paid ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 June 2019 I need to know laws of the land to suggest the entry.
1 Whether ITC can be taken on this construction.
2 Whether VAT payable on advance received.

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