Entry of VAT

Save Share

This query is : Resolved

CA. Mala Rohara (Querist)
Follow

02 November 2009 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?

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
Follow

26 November 2009 (1) If Input Tax Credit Available
(A) Purchase @4% A/C Dr. 340000/-
ITC on Our @4% A/C Dr. 13600/-

To Party A/C Rs.340000/-
To VAT TDS Payable A/C Rs. 13600/-

(b)when TDs deposited to Govt Account
VAT-TDS Payable A/C Dr. Rs. 13600/-
To Bank A/C Rs.13600/-
(2)If Input Tax Credit NOT Available
Purchase @4% A/C Dr. 353600/-

To Party A/C Rs.340000/-
To VAT TDS Payable A/C Rs. 13600/-

(b)when TDs deposited to Govt Account
VAT-TDS Payable A/C Dr. Rs. 13600/-
To Bank A/C Rs.13600/

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now