Job Work

A/c entries 1177 views 7 replies

sidharth

owner

59 Points Posted on 01 January 2010

scenario

We are a prop. firm, non excise. We buy a 'product A' and get some job work done on it and sell it to end user.

The job worker raises an invoice on us charging 'VAT on material charges' and 'Service Tax on labour charges'.

Guide me how to make voucher entry. I am using Tally 7

So Far: make a sub head JOB WORK under purchases head and make a non item invoice entry as - Purchase A/c Dr. (Balance Amount), Input VAT A/c Dr. (VAT Amount), Party A/c Cr. (Invoice Amount)

Replies (7)

Guest

first tell me abt ur vat registration which service is registered in vat certificate...

sidharth

owner

59 Points Posted on 02 January 2010

we are registered under VAT for trading

we are getting the JOB WORK done from someone.. not doing it

SUNIL SINGH

ACCOUNTANTS AND INCOMETAX WORKS

142 Points Posted on 02 January 2010

if u choice, take two bill take recd. from jober party, means first bill on VAT Invoice and Second Bill on Job Charges(Labour Charges) and

VAT Invoice bill entry

Purchases a/c dr.

VAT a/c dr

to XYZ Party

and Job Charges bill entry

Job Charges a/c Dr.

to XYZ Party.

if U hace take One Bill Only than entry

Purchases a/c dr

VAT a/c dr

Job Charges a/c Dr.

to XYZ Party

sidharth

owner

59 Points Posted on 02 January 2010

ok.. getting it ..

you mean material charges goes to purchase a/c and labour charges goes to jab work a/c.

Please confirm:

there is no item entered during the entry, inventory is not asffected

job work charges is ... under direct expenses or purchases head??

Guest

pls note this you can only claim input on these material if it is covered under your vat registration eg. if you have registration of electronic items u cant claim input of cement.. i hpe you understand and it clear to u

sidharth

owner

59 Points Posted on 03 January 2010

VAT registration thing is all okk and clear.. i just wanna confirm the entry...

scenario:

A product is purchased from party A, invoice is raised on us.

some polishing is done by party B, Party B raises invoice on us - material charges and labour charges...

Please confirm: entry for invoice raised by party B

material charges goes to purchase a/c and labour charges goes to job work a/c.

there is no item entered during the entry, inventory is not affected

job work charges is ... under direct expenses or purchases head??

Guest

as u mentioned earlier you are trader not manufacture u cant take material as purchase all the things u hve to take under job work(direct expense) whether material work or labour work...