vat
This query is : Resolved
28 June 2011
i want to know, whether vat is shown in p\l account even vat is standing receivable in balance sheet,i am asking this question because i had seen vat in balance sheet ,either rec.. or payable but vat is not shown in p/l acoout
Mukesh Chhangani
(Expert)
30 June 2011
WE CAN CLAIM INPUT CREDIT ON VAT PAID. HENCE IT IS OUR ASSET AND SHOWN IN BALANCE SHEET.
IF OUR LIABILITY TO PAY VAT IS MORE THAN ASSET THAN WE HAVE TO PAY THE VAT AMOUNT. TILL THAT TIME IT IS SHOWN AS LIABILITY. IN MAY CASES VAT CREDIT IS NOT AVAILABLE IN SUCH CASES IT IS ADDED TO PURCHASE COST AND IT FORM PART OF PROFIT AND LOSS A/C. SO TECHNICALLY IT IS NOT SHOWN SEPARATELY IN PROFIT AND LOSS ACCOUNT.
IF OUR LIABILITY TO PAY VAT IS MORE THAN ASSET THAN WE HAVE TO PAY THE VAT AMOUNT. TILL THAT TIME IT IS SHOWN AS LIABILITY. IN MAY CASES VAT CREDIT IS NOT AVAILABLE IN SUCH CASES IT IS ADDED TO PURCHASE COST AND IT FORM PART OF PROFIT AND LOSS A/C. SO TECHNICALLY IT IS NOT SHOWN SEPARATELY IN PROFIT AND LOSS ACCOUNT.
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