Accounts

your query is not clear. Check the sale and purchase invoices for VAT amount

Purchase of Rs. 100000 assuming tax rate is 5% hence we will get input credit of Rs. 5000 (100000*5%)

Sales is Rs. 85000 assuming tax rate is 5% hence tax payable is Rs. 4250 (85000*5%)

Sales Tax Payable             4250

Less: Input Tax credit        5000

Balance                              -750

The excess input credit of Rs. 750 can be carried forward to next month or refund can be claimed.

Thank you !!!!!!!