Duties and Taxes for GST Input and Output
This query is : Resolved
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29 March 2022
Dear Sir,
Recently i joined to the new group of companies. Here 12 companies accounts are maintained.
But in all the companies Input GST kept under Direct Expenses and Output GST under Direct Income.
Actually Input and output both will come under Duties and Taxes.
which is the right way to maintain. here they telling as per CA requirements all are maintaining keep as it is.
Thanks in advance
Sowmya K S
Recently i joined to the new group of companies. Here 12 companies accounts are maintained.
But in all the companies Input GST kept under Direct Expenses and Output GST under Direct Income.
Actually Input and output both will come under Duties and Taxes.
which is the right way to maintain. here they telling as per CA requirements all are maintaining keep as it is.
Thanks in advance
Sowmya K S
CA Altamush Zafar
(Expert)
29 March 2022
Input can be taken in expenses if ITC not available. However output tax always becomes part of liability. It cannot be taken as Direct Income as it will also be violation of AS-9 and also corresponding IND-AS which deals with revenue recognition
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CA Altamush Zafar
(Expert)
29 March 2022
If ITC is eligible and have not been claimed then they have been booked under expenses. You also need to check the GST returns as to how they are being filed.
As a principle claim of ITC is optional. It is a right which can be exercised or forgone
As a principle claim of ITC is optional. It is a right which can be exercised or forgone
Message likes :
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CA Altamush Zafar
(Expert)
29 March 2022
Then check there maybe a transfer entry which transferring ITC from expense back to asset
29 March 2022
Yes in previous year a/c end of the year Income- expenses adjusted towards the payable a/c
CA Altamush Zafar
(Expert)
29 March 2022
Not a very efficient way of accounting but the end result is the same
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