Goods purchase entry
This query is : Resolved
18 June 2014
There is one my supplier. I purchased raw material from him. In his bill he charged VAT on 80% portion of the bill and on 20% nothing.
My question is that what is accounting entry for this. Whether I should charged entire amount to Raw Material Purchase A/c or I should charge 80% to Raw Material Purchase A/c and 20% to Labour Charges A/c.
e.g. Total Contract Amount 100
VAT @ 12.5% on 80% of Rs.100 10
Total Invoice Amount 120
My question is that what is accounting entry for this. Whether I should charged entire amount to Raw Material Purchase A/c or I should charge 80% to Raw Material Purchase A/c and 20% to Labour Charges A/c.
e.g. Total Contract Amount 100
VAT @ 12.5% on 80% of Rs.100 10
Total Invoice Amount 120
19 June 2014
you are not mention the item name on which vat not charged.
if vat not cenvatable then charge on 80% value.
if vat not cenvatable then charge on 80% value.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
OR add as source on Google news
- US CPA Course
- GST audit turnover threshold
- Rebate Under 87A Issue
- Balance sheet for ITR-3
- STCG vs LTCG mismatch in reports (Motilal Oswal Nasdaq 100 FoF).
- ITDS on Lease Rent
- 54F disallowance taxed at what rate
- TDS deducted US 194JB can file ITR US 44ada
- Freelance Business code
- Misleading AIS data for increasing compliance
- Place of Supply and which Component to be charged in Invoice i.e. IGST or CGST, SGST
- HUF Gifts
- Treatment of Losses from Future and Options Trading in Income Tax Return
- Need Help for US CPA
- Self assessment tax amount
- ITC Liability on Capital Goods on death of Proprietor (GTA)
- Subject: Clarification on Applicability of E-Invoicing and 30-Day Reporting Requirement under GST
- GOODS SENT TO INTERSTATE BRANCH FOR EXHIBITION ON DELIVERY CHALLAN & GOODS RETURN BACK
- TRUST QUERY INCOME APPLIED
- Credit from Office of Regional Provident Fund Commissioner
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
OR add as source on Google news
CAclubindia
