Urd purchase

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shivu1596

shivu1596 (Querist)
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04 November 2013 what will be the accounting entries for urd purchase?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 November 2013 Dr: Purchase
Cr: VAT payble (URD)
Cr: Creditors (supplier)

Rahul Singhania

Rahul Singhania (Expert)
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04 November 2013 Purchases from unregistered dealer is not eligible for input tax credit though he is within threshold limit,

Purchases A/c [with full amount] Dr.
To Supplier A/c

Also, correct me if i am wrong

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 November 2013 Hi

Please read my entry carefully

I am not taken any input. while doing purchase from URD. the vat liability arises on buyer. so buyer has to create VAT liability and pay to department. so I given the credit effect only

CA UMESH DULAL

CA UMESH DULAL (Expert)
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04 November 2013 I think Rahul's entry is more appropriate

if you purchase goods from URD, you should include the vat amount on purchase amount.

Rahul Singhania

Rahul Singhania (Expert)
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04 November 2013 Yes, Whenever goods are purchased from unregistered dealer,tax burden is added to the purchases cost of particular goods as the ITC is not available.

Note: ITC = Input Tax Credit

VISHAL SHAH

VISHAL SHAH (Expert)
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05 November 2013 Purchase Dr to creditor cr. In Gujarat no vat is payable on urd purshase so no entry to be pass for vat but if vat is payable in other state on urd purchase entry for vat is input vat Dr to vat payable account and such vat is also eligible for credit

CA Pallav Singhania

CA Pallav Singhania (Expert)
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05 November 2013 Agree with Experts,

VAT credit in case if URD purchase is not allowed..
However, Such VAT on purchase will be considered as the part of the cost as such isn't refundable...

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