Vat for accounting entry

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2014 When i am making a purchase and i enter the purchase bill into tally, i select VAT 4% and 1% and enter the respective amounts.

I need to know what should be the group in tally for the VAT 4% and 1% line item. Should it be duties and taxes? or it should be under purchase?

Guest

Guest (Expert)

06 June 2014 it should be under purchase dear....

Ganeshbabu K

Ganeshbabu K (Expert)

06 June 2014 It is under Duties and taxes
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one output account and one input account should be maintained

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2014 so one output account will be under duties and taxes and the input will be under purchase or duties and taxes as well?

Ganeshbabu K

Ganeshbabu K (Expert)

07 June 2014 Both should be under Duties and taxes
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Input will be adjusted to output and balance if any will be settled by bankA/c
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if you are not taking credit dont take such entries to Input stright away book as expence

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2014 Hi Ankit, can you please let me know why it should be under Purchase? i am giving the eg of my entry

* Purchase Rs.1000
* VAT 4% Rs.500
* VAT 1% Rs.500

Total value of the bill - Rs. 2000

So, the line item VAT 4% and 1% will be under the head duties & taxes or purchase?

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