Whether vat is tobe paid on excise duty amount also

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2014 WHILE MAKING PAYMENT OF VAT IS VAT IS TO BE PAID ON PURCHASE PRICE PLUS EXCISE DUTY AMOUNT.IF SO THEN THERE IS DOUBLE TAXATION (VAT ON EXCISE DUTY).WHAT WILL BE THE ACCOUNTING ENTRIES IN BOOKS OF BUYER & SELLER FOR ENTIRE TRANSACTION INCLUDING PURCHASE/SALE PRICE,VAT & EXCISE DUTY.

PLEASE HELP IN THIS REGARD. I HAVE A LOT OF CONFUSION REGARDING THIS MATTER.

VAMSI ASSOCIATES/S.PHANI RAJ

VAMSI ASSOCIATES/S.PHANI RAJ (Expert)
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27 April 2014 vat is to be paid on the following
a.value+excise duty+cess2%+cess1%+freight

on purchase and and as well as sale also the vat paid on the above total amount
it is not a double taxation
central excise duty is reflects to central government and vat is state taxes only
you have entered the same as follows

on purchase entry
purchase raw material a/c - DR
excise duty & cess a/c - DR
VAT A/c - DR
to party A/c - CR

on sale entry
customer a/c - DR
Sales A/c - Cr
excise duty & cess a/c - CR
VAT A/c - CR
ok

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