VAT
This query is : Open
03 November 2009
A soya Company purchases Soya Seeds from the supplier and supplier charge VAT @ 4% in MP. Company makes payment to supplier without VAT and issue TDS Certificate for the VAT Amount as per Section 26-A of M.P. VAT Act.
Summarize position is as follows:
Purchase Value 20 M.T. @ 17,000/- per M.T. = 3,40,000/-
Add: VAT @ 4% = 13,600/-
Total Purchase Value = 3,53,600/-
Company is making payment of Rs. 3,40,000/- to supplier and issuing TDS certificate of Rs. 13,600/- to supplier. Amount of TDS of Rs. 13,600/- is not required to be deposited to govt.
What will be the accounting Entry?
Summarize position is as follows:
Purchase Value 20 M.T. @ 17,000/- per M.T. = 3,40,000/-
Add: VAT @ 4% = 13,600/-
Total Purchase Value = 3,53,600/-
Company is making payment of Rs. 3,40,000/- to supplier and issuing TDS certificate of Rs. 13,600/- to supplier. Amount of TDS of Rs. 13,600/- is not required to be deposited to govt.
What will be the accounting Entry?
03 November 2009
Purchase A/C dr. 340000
Input Vat Credit A/c dr 13600
To Supplier A/C 340000
To Input Vat Payable A/C 13600
(Assuming Input Vat to be deposited with MP Govt against TDS certificate issued.)
Input Vat Credit A/c dr 13600
To Supplier A/C 340000
To Input Vat Payable A/C 13600
(Assuming Input Vat to be deposited with MP Govt against TDS certificate issued.)
03 November 2009
04 November 2009
The entries in following manner will present more perfactly scnario. presented in sequential manner as under;
(1) Entry for purchase
Inventory A/c Dr. (With Inventory amt)
Exp.on purchase A/c Dr. (Exp.amt payable)
VAT Receivable - Input A/c Dr. (VAT included in vendor’s Invoice for Issue of TDS certificate)
TDS under VAT A/c Cr. (VAT amt.to be deposited with deptt.)
Vendor’s A/c Cr. (Amt.including exp.by vendor but excluding VAT)
(2) Deposit of VAT with Commercial Department
TDS under VAT A/c Dr.
Bank A/c Dr.
(3) Issue of TDS under VAT certificate
Vendor’s A/c Dr.
VAT Receivable - Input A/c Cr.
Kindly, revert with valuable opinion please, if any.
(1) Entry for purchase
Inventory A/c Dr. (With Inventory amt)
Exp.on purchase A/c Dr. (Exp.amt payable)
VAT Receivable - Input A/c Dr. (VAT included in vendor’s Invoice for Issue of TDS certificate)
TDS under VAT A/c Cr. (VAT amt.to be deposited with deptt.)
Vendor’s A/c Cr. (Amt.including exp.by vendor but excluding VAT)
(2) Deposit of VAT with Commercial Department
TDS under VAT A/c Dr.
Bank A/c Dr.
(3) Issue of TDS under VAT certificate
Vendor’s A/c Dr.
VAT Receivable - Input A/c Cr.
Kindly, revert with valuable opinion please, if any.
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