22 August 2012
The profit and loss tab in the form, requires the input and output vat figures, and the vat payable to government.
we are making 5% purchase and 2% sale, as per the format given, 3% is added in the income, what is the remedy for this, in the absence of any column for vat refund?
23 August 2012
Dear Ratnmani, remaining VAT of 3% is not your Income its just a refund of tax paid to person from whom you purchased Software. If you debit entire 5% and credit 2% to profit and loss account then you have to take balance as Income otherwise it need not to be taken as Income.
CAclubindia
