ITC treatment in accounting

351 views
User Avatar

Assistant Accounts Officer (Retd) in Ele
106 Points Posted on 04 November 2020
what is treatment of ITC in accounting. the payment will be short due to ITC. Is it income, liability or assets.
0 Reply Share Follow
On 04 November 2020 at 16:18 Report
Replies (6)
Quick Summary
This discussion clarifies the accounting treatment of Input Tax Credit (ITC). It explains that ITC is used to offset outward tax liabilities and is typically recorded within 'Duties and Taxes'. If a credit balance remains in 'Duties and Taxes' at year-end, it signifies outstanding GST payable.

User Avatar

Accountant
3662 Points Posted on 04 November 2020
Current assets
Reply
On 04 November 2020 at 16:35
User Avatar

GST Practitioner
55067 Points Posted on 04 November 2020
Cannot get your query...
Reply
On 04 November 2020 at 22:54
User Avatar

133 Points Posted on 05 November 2020
You can set off your itc from outward tax liability. both outward and inward fall under duties and taxes, just pass itc entry only when you claim input tax credit
Reply
On 05 November 2020 at 10:14
User Avatar

Assistant Accounts Officer (Retd) in Ele
106 Points Posted on 05 November 2020

Thank you very much. Just some more clarification. If Duties and Taxes has Credit balances at the end of year how to act 

Reply
On 05 November 2020 at 11:56
User Avatar

133 Points Posted on 05 November 2020
Need to check your o/s liability. is that matched that consider that liability as gst payable in b/s
1 Reply
On 05 November 2020 at 11:59
User Avatar

Assistant Accounts Officer (Retd) in Ele
106 Points Posted on 05 November 2020

Thank you very much 

Reply
On 05 November 2020 at 12:03

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Guidance Required on Filing Fresh Registration und
  2. IT Return Refund Status AY 2026-27
  3. Clarification Regarding Income Tax Demand Notice
  4. Online PAN Download: Check How?
  5. Demand of Late fee/Interest under section 75 of GS
  6. DSC registration on TRACES portal
  7. Can we get registered for MCA if we get a Virtual
  8. DONATION PAYMENT REG
  9. GST IDS Refund – Statement 01A: Invoice Not
  10. TDS deposit code & TDS return

More recent discussions | Post

Related Topics :

Loading