Vat


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Querist : Anonymous

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Querist : Anonymous (Querist)
20 April 2013 What will be the Entry if i Pay VAT on Purchase of Furniture.

For eg the Bill is as Follows:

Bill Amount 10,000
VAT @12.5% 1,250
Total 11,250

Reply ASAP

Ravi Jhamb (Expert)
20 April 2013 All expenses for purchasing assets is add into assets a/c

Furniture A/c 11250
To Bank/Cash A/c 11250

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 April 2013 Dont we get input credit of it ?? like VAT Purchases

Ravi Jhamb (Expert)
20 April 2013 Used Journal Voucher

Furniture A/c 10000
VAt 12.5% 1250
To Bank 11250

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 April 2013 Which is the Right Treatment ie Capitalise or take Input credit???

Ravi Jhamb (Expert)
20 April 2013 Input is taken on production goods instead of assets. assets credit not surely approved by clerk of sales tax.

Ravi Jhamb (Expert)
20 April 2013 Just check out Sales Tax made for Sales and Purchase of trading goods. You can take credit whose goods you are doing business.

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 April 2013 Thank You For Help


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