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.
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