Purchase of furniture

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This query is : Resolved

Quick Summary

A company in Dubai purchased office furniture, classifying it under fixed assets. When filing their VAT return using Tally, the purchase appeared under 'Capital Goods Purchases'. The user is seeking confirmation on whether this classification is correct for VAT purposes.

shalini

shalini (Querist)

01 June 2020 hi good afternoon,
company made some purchase of furniture(under fixed asset) for the office. white filing the vat return it is being reflecting under capital goods. appreciate, if you can let me know if it is correct

c.bakshi

c.bakshi (Expert)

02 June 2020 furniture is treated as capital asset

shalini

shalini (Querist)

02 June 2020 Thanks for the reply. when i am filing vat return in tally. it is reflecting as follows

Sales (Outwards) :
Local Supplies
Domestic Taxable Supplies@ 5%
Total
Purchases (Inwards) :
Local Purchases
Domestic Taxable Purchases@ 5% -------> showing local purchase
Capital Goods
Purchases@ 5% (2,261.90)
Domestic Taxable Purchases - Capital Goods@ 5%.......>> in this row it is showing furniture purchase transaction.
Total
Payable
Payment Details
Tax payment (included)
Tax payments (not included/uncertain)
Tax paid at customs
VAT Paid
Balance VAT Payable

Hope it is correct. This account belong to company in dubai.

REgards,
Shalini

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