accounting entry for indirect taxes

For V A T

1) make entry while you purchase

vat input a/c  dr     xxxxx (under current asset)

           to purchase a/c      xxxxx

 2) make entry  while sale

sales a/c  dr xxxxxx

     to vat out put a/c xxxxxx (under current liabities)

The difference you have to pay i.e.,vat output--vatinput

Also you can make  2 entries to find difference by transfering the vat entries(i.e.,vat input,vatoutput)

a)vat payable a/c dr  xxxxx

          to vat input a/c           xxxx

b)vat output a/c dr xxxxx

               to vat payable a/c xxxxx

Finally you have to pay the amount which stands in vat payable a/c

hello dude

for this first of all .if the company is making purchases and claiming input on the purchsesmade then entry is to be passed

purchase a/c          Dr  100

cenvet credit        dr   8.24

to party                             108.24

the output liablity for excise is as under

cash a/c          330

to excise duty liablity  30

to sals                     300

the input and output ed adjusted and difference have to pay 5th of next month .

for further clarification ,,, ask bindasss 

Regards

Sandeep is right

For Vat ,

Make entry while you purchase

Purchase a/c Dr.xxx

Input Vat a/c Dr.xxx

Supllier Party a/c CR.xxx

Make entry time of Sales

Party ( buyer) a/c Dr.xxx

Sales a/c Cr.xx

Output a/c Cr.xxx

& at the time month Closing create a ledger Vat adujustment a/c & make entry as under.

Vat outpur a/c Dr.  100

Vat input a/c cr. 80

Vat audujustment a/c cr.20

Now  Rs.20/- Cr. Balance is payble deposit to Govt a/c thourhg Challan