We have been deducting Out put VAT on Sales Retunrs.
By passing following entries
When Sale is made
Party a/c Dr
To Sales a/c
To Out put VAT a/c
When Sales returns
Output VAT a/c Dr
Sales Returns a/c Dr
To Party a/c
Now department people are telling that VAT should not be deducted on sales return
Pls advice me
CAclubindia
