Vat exp.
This query is : Resolved
20 June 2015
dear sir,
a company has purchase machinery parts and he was pay vat @5 %. But company has record vat receivable and actually vat are not refundable, finally company have treated as VAT expenses and debited to P & L. what is right or wrong?????
a company has purchase machinery parts and he was pay vat @5 %. But company has record vat receivable and actually vat are not refundable, finally company have treated as VAT expenses and debited to P & L. what is right or wrong?????
20 June 2015
VAT should be expense out to P&L A/c
20 June 2015
If it is possible to alter the entry, just remove that entry of taking Vat input and take it to the capitalized value of machinery.
And if not, let be in expenses.
And if not, let be in expenses.
20 June 2015
thank you sir
20 June 2015
If it is for machinery it would be capitalised. You have indicated for machinery parts unless they add value to the machinery they are expensed.
22 June 2015
you have to capitalized in same machinery head
22 June 2015
you have to capitalized in same machinery head
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