GST ON BUILDING MATERIAL

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PURI HARMEET SINGH (Querist)

11 August 2017 As ITC of building material is not available then where to post TAX amount. Dr building account 1000 dr cgst 90 sgst 90 cr party 1180 ? then how adjust tax amount as all taxes goes to those accounts

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)

11 August 2017 You have to debit total 1180 to building account without splitting the tax.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

12 August 2017 You hae to pass this entry Building a/c. 1180 To party a/c. 1180

RAJA P M

RAJA P M (Expert)

12 August 2017 No.... I think it's not correct.... Split the tax amount And material amount. Also add tax amount as expenditure account. Then only it is going to indirect expenses account. If we add full cost as single account then attracted in Purchase account..... please correct if I'm wrong.....

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)

12 August 2017 If you are booking building material through purchase entry then you have to pass 2 entry one for purchase with GST break up and another entry to transfer the building materials to Fixed asset along with GST. Choice is yours to pass single or double entry. End result is in fixed asset total amount debited will be with GST as on construction ITC is not available

VK

PURI HARMEET SINGH

PURI HARMEET SINGH (Querist)

12 August 2017 If I debit full amount to building a/c then govt. how to know that I paid taxes on material purchases ?

RAJA P M

RAJA P M (Expert)

12 August 2017 @ CA.Vinoth Kothari Sir My doubt is not in ITC. Just the entry based only. If we enter the amount fully then it's not calculated in that exact material value. And ITC not available in this case it's passed to expenditure account as indirect... That conditions only it's calculate the value of materials.... am I right.....

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)

12 August 2017 @Raja yes you are right.

VK

RAJA P M

RAJA P M (Expert)

12 August 2017 Thank you for the Clarification Sir. Thank you once again

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