For tax on fixed assets

485 views 1 replies

Hi,

i have to enred a entry of purchase of fixed assets entry.

Example i've purchase computer on this bill supplier have added a input vat @ 12.55 and additional tax @ 2.5%.

computer is fixed assets for me .now i'm confusing which vat class i have to take for it.

Dr. Computer               Rs.20000

Dr. inputvat                  Rs.2500

   Cr.  Xyz                                                Rs.22500

Is this right or not?

which vat class i have to take.

Replies (1)

If ou can take the input credit of the VAT then only you should pass this entry otherwise capitalise the whole amount including VAT.

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