Vat input and output
This query is : Open
08 August 2011
Dear All,
We are dealing as a dealer between Manufacturers and end users. It is a Pvt. Ltd. company.
We are purchasing and selling UPS, Batteries and Inverters. For that we are getting Input VAT as well as Out VAT.
1.Apart from that we purchase some times scrap batteries from our customers and resale those scrap batteries to our suppliers. When we are purchasing scrap batteries they are not giving any invoice and VAT Input.
How do we have to pass entry for that when we are selling those scrap batteries?
Should we consider VAT for this transactions.
2. When we are getting Employee ID cards and Business card, our suppliers charging VAT on those transactions.
How do we have to pass entry for that? Can we get VAT input for that by showing as purchase or do we have to show all that amount as indirect expenses. can we show as an asset?
Please clarify my doubts.
Thanking you all.
We are dealing as a dealer between Manufacturers and end users. It is a Pvt. Ltd. company.
We are purchasing and selling UPS, Batteries and Inverters. For that we are getting Input VAT as well as Out VAT.
1.Apart from that we purchase some times scrap batteries from our customers and resale those scrap batteries to our suppliers. When we are purchasing scrap batteries they are not giving any invoice and VAT Input.
How do we have to pass entry for that when we are selling those scrap batteries?
Should we consider VAT for this transactions.
2. When we are getting Employee ID cards and Business card, our suppliers charging VAT on those transactions.
How do we have to pass entry for that? Can we get VAT input for that by showing as purchase or do we have to show all that amount as indirect expenses. can we show as an asset?
Please clarify my doubts.
Thanking you all.
09 August 2011
Mr Rajashekar,
While buying scrap batteries from your customers you have to raise a purchase bill u/s 3(b) of KVAT Act or such Act,charge VAT at applicable rates(i.e.14% in Karnataka)and pay it to the department.
When you sell these scrap to your suppliers you have to chrge output tax in the sale invoice.The purchase tax paid already to the department can be deducted from the output now payable. This can not be taken as an asset or expenses.
MJK
While buying scrap batteries from your customers you have to raise a purchase bill u/s 3(b) of KVAT Act or such Act,charge VAT at applicable rates(i.e.14% in Karnataka)and pay it to the department.
When you sell these scrap to your suppliers you have to chrge output tax in the sale invoice.The purchase tax paid already to the department can be deducted from the output now payable. This can not be taken as an asset or expenses.
MJK
Message likes :
1 times
10 August 2011
Dear Mr.MJ Krishnamurthy thanks for your valuable information sharing with me.
Please also confirm, how should we pass the accounting entries when we are purchasing Employees ID, Business cards. Our suppliers are charging VAT for this. Can we claim that VAT as INPUT VAT or should we treat as indirect expenses.
I am very glade if you share your valuable information.
Thanking you,
Please also confirm, how should we pass the accounting entries when we are purchasing Employees ID, Business cards. Our suppliers are charging VAT for this. Can we claim that VAT as INPUT VAT or should we treat as indirect expenses.
I am very glade if you share your valuable information.
Thanking you,
10 August 2011
Mr Rajashekar,
Tax paid on purchase of Employees,ID cards, business cards can not be claimed,because they wer not purchased for resale or as raw material.Such purchases are office expenses only.
MJK
Tax paid on purchase of Employees,ID cards, business cards can not be claimed,because they wer not purchased for resale or as raw material.Such purchases are office expenses only.
MJK
10 August 2011
Thank very much sir
23 January 2015
can we take cenvat credit of inverter ^& bettery purchase for factary use,,plz suggest
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Rental income gst and it purpose
- Management System (IMS)
- Condonation . E-Verification of last year return .
- Eway bill generation from place other than registeted
- FTS Taxable under 115A
- EPF FULL & FINAL RULES IN 2026
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
