Greetings for the day
we have one case pending with sale tax department demand was against C FORM was 150k, We lost case to the department and submitted the above mentioned amount..
My Question
How do we pass entry in books of accounts, we didn't not create any provision for the same
...
Menu
C FORM ENTRY
Replies (2)
Legal expenses account. LEGAL expenses account WRITTEN IN DEBIT SIDE OF PROFIT & LOSS A/C
150k is sales tax liability.
Since ITC is not availed on interstate purchases under VAT/ Sales tax , purchaser issue the C Form . In this case VAT rate would have very less and payment to seller will also be less to this extent..
If C Form is not produced by buyer then buyer is liable to pay balance Vat to seller .
In the books of Seller
Debtors A/c Dr
To VAT Liability
VAT has to be paid to dept and it has to be recovered from customer
Since ITC is not availed on interstate purchases under VAT/ Sales tax , purchaser issue the C Form . In this case VAT rate would have very less and payment to seller will also be less to this extent..
If C Form is not produced by buyer then buyer is liable to pay balance Vat to seller .
In the books of Seller
Debtors A/c Dr
To VAT Liability
VAT has to be paid to dept and it has to be recovered from customer
Recent Topic
- TDS deducted by EPFO under wrong section
- Schedule SI in ITR-2
- What is the easy way to do CA- through foundation
- Schedule FA query for this AY 2026-27
- Business income source for husband and wife
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
Related Topics
CAclubindia
