Input vat
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 October 2013
HOW WILL WE PASS ENTRY FOR INNPUT VAT CREDIT TAKEN AGAINST OUTPUT TAX. WHAT Will be entry & narration. Will we have to open Input vat A/c And input tax credit A/c separately & pass entry at the end of each month. how output vat will be set off againt input tax . what will be the entry & narration. IF output tax is excess how entry will be passed .what will be the narration.If input tax is excess what will be the entrt & narration. Please Advice me in details along with entries & narrations
04 October 2013
i will explain it with an Example:
on purchase of material of Rs. 50000 you pay Input Vat Tax of Rs. 2500
Entry:
Purchase A/c Dr. 50000
Input Vat A/c Dr. 2500
To Creditor A/c Cr. 52500
On sales of Rs 80000 you have to pay 4000
Entry:
Debtors A/c: Dr. 84000
To Sales A/c Cr. 80000
To Output Vat Tax A/c Cr. 4000
At the end of year pass an entry to close vat account and to make provision for payment as follow:
Entry:
Output VAT Tax A/c. Dr. 4000
To Input Vat Tax A/c Cr. 2500
To VAT Payable A/c Cr. 1500
[being provision for VAT liability for the period ___ to ___ is made]
on payment of VAT pass the following entry
Entry:
VAT Payable A/c Dr. 1500
To Cash/Bank A/c Cr. 1500
on purchase of material of Rs. 50000 you pay Input Vat Tax of Rs. 2500
Entry:
Purchase A/c Dr. 50000
Input Vat A/c Dr. 2500
To Creditor A/c Cr. 52500
On sales of Rs 80000 you have to pay 4000
Entry:
Debtors A/c: Dr. 84000
To Sales A/c Cr. 80000
To Output Vat Tax A/c Cr. 4000
At the end of year pass an entry to close vat account and to make provision for payment as follow:
Entry:
Output VAT Tax A/c. Dr. 4000
To Input Vat Tax A/c Cr. 2500
To VAT Payable A/c Cr. 1500
[being provision for VAT liability for the period ___ to ___ is made]
on payment of VAT pass the following entry
Entry:
VAT Payable A/c Dr. 1500
To Cash/Bank A/c Cr. 1500
Message likes :
1 times
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- TDS on Purchase of Immovable Property by NRI from NRI
- Regarding TDS Applicability For Director Remuneration
- FORM 26A APPLICABILITY
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
