Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Input credit of tax paid on tally updation

ITC / Input 1388 views 9 replies

vinay

Trainee CMA

241 Points Posted on 04 August 2018

Hi

we a registered dealer of paint business updated tally software used in our office. This tally is used for billing purpose of our business. The tally company has issued invoice for updation by charging gst. Shall we take the input credit of this gst

Replies (9)

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Posted on 04 August 2018

Originally posted by : vinay
	Hiwe a registered dealer of paint business updated tally software used in our office. This tally is used for billing purpose of our business. The tally company has issued invoice for updation by charging gst. Shall we take the input credit of this gst

Yes

vinay

Trainee CMA

241 Points Posted on 04 August 2018

Thanks... One more doubt.. How to journalise it.. our purchases will update stock. so can i go with a journal

tally (asset) a/c dr
cgst a/c dr
sgst a/c dr
To tally supplier

Fahad Aslam

103 Points Posted on 04 August 2018

show annual subscripttion of tally under indirect expenses head instead of asset... rest the entry is correct

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Posted on 04 August 2018

Originally posted by : Fahad Aslam
	show annual subscriptttion of tally under indirect expenses head instead of asset... rest the entry is correct

There is no annual subsciption involved

Fahad Aslam

103 Points Posted on 04 August 2018

the updation which the querist is talking about is annual subscripttion charged by tallusiolutions through their vendors.. as it does not increase the life of asset... better way is not to capitalise but to show it as an expense