Journal entry for vat refund

Purchase A/c Dr.........................................

Vat Input Dr.(Under Current Asset).........................

To Vendor................................................................................

The Input vat and output vat should be under duties and taxes in tally. At end of month. Dr output vat ( make it zero ) and Cr vat payable ( under duties and taxes) Dr vat payable Cr input vat ( make zero ) Balance in vat payabe a/c( in your case debut balance will be carried forward) At end of the year Transfer the balance in vat payable a/c to vat refundable a/c under current assets( or duties and taxes ). In new year , pass reverse entry Dr Vat payable Cr vat refundable REGARDS RAJ CHETAN DOSHI email: rajcdoshi @ gmail.com

Wrong ans raj sir:)

At time of purrchase Purchase a/c dr. Vat input a/c dr. To abc ltd cr. At time of sales Xyz ltd(purchaser) dr. To sales(goods) cr. To vat output cr.

Also you can create input vat credit account just like cenvat credit account in case of exsice. Transfer the input and output vat end of every month to that account.

Purchase Purchase Dr Input vat Dr Creditors Cr Sales Debtor Dr Sales Cr Output vat cr End of month Output vat Dr Vat payable Cr Vat payable Dr Input vat Cr If vat payable a/c has credit balance pay the amount. And vat payable a/c has debit Balance let it be. At end of the year If vat payable has debit balance , then Vat refundable Dr Vat payable Cr In new year.( Transfer closing balance ) Vat payable Dr Vat refundable Cr All vat accounts to be opened under Duties and taxes.

Purchase: Purchase Dr Input vat Dr Creditors Cr  Sales: Debtor Dr Sales Cr Output vat cr End of month: Output vat Dr Vat payable Cr Vat payable Dr Input vat Cr If vat payable a/c has credit balance pay the amount. And vat payable a/c has debit Balance let it be. At end of the year: If vat payable has debit balance , then Vat refundable Dr Vat payable Cr In new year.( Transfer closing balance ) Vat payable Dr Vat refundable Cr All vat accounts to be opened under Duties and taxes.

Gaurav sir, your answer is also right. Here the way of book keeping is different. Final amounts remain same. Its just a better way of presentation. :)

Dear all looks here illustration given below

might this clear your all doubts

A dealer purchases the following goods in a State during the month of March 20x6:

Particulars Total Input Tax Net

4% VAT Goods of Rs. 10,40,000  VAT - 40,000  Net Amount - 10,00,000

12.5% VAT Goods of Rs. 9,00,000 VAT - 1,00,000 Net Amount - 8,00,000
VAT Exempt Goods Of Rs. 2,00,000 -VAT-Nil Net AMount  2,00,000

Total Amount of rs.  21,40,000 VAT - 1,40,000 Net Amonut  20,00,000

2. The input tax paid on purchase of goods is eligible for VAT credit.

3. Sales made by the dealer during the month are as below:

Particulars Gross Output Tax Net Sales
Amount Collected Consideration
(Rs.) (Rs.) (Rs.)
4% VAT Goods Of Rs.11,44,000, Vat of Rs.  44,000 Net Amount 11,00,000
12.5% VAT Goods Of Rs.10,12,500 Vat of Rs.1,12,500 Net Amount 9,00,000
VAT Exempt Goods Of Rs. 2,50,000 Vat of Rs. Nil - Net Amount 2,50,000

Total 24,06,500  VAT 1,56,500  Net Amount 22,50,000

 

1. The dealer passes the following entry to record the goods purchased and input tax paid thereon:

4% VAT Goods Purchase A/c Dr. Rs. 10,00,000
12.5 % VAT Goods Purchase A/c Dr. Rs. 8,00,000
VAT Exempt Goods Purchase A/c Dr. Rs. 2,00,000
VAT Credit Receivable (Inputs) A/c Dr. Rs. 1,40,000

                                       To Bank A/c Rs. 21,40,000
(Being goods purchased and input tax paid)

2. The dealer passes the following entry to record the goods sold and VAT collected thereon:

Bank A/c Dr. Rs. 24,06,500
               To 4% VAT Goods Sales A/c Rs. 11,00,000
                To 12.5 % VAT Goods Sales A/c Rs. 9,00,000
                To VAT Exempt Goods Sales A/c Rs. 2,50,000
                 To VAT Payable A/c Rs. 1,56,500
(Being goods sold and VAT collected)

3. The dealer passes the following entry to record the liability for VAT
payable met by using the balance in the VAT Credit Receivable (Inputs)
Account:

VAT Payable A/c Dr. Rs. 1,40,000
            To VAT Credit Receivable (Inputs) A/c Rs. 1,40,000

(Being liability for VAT payable met by using the balance in the VAT Credit Receivable (Inputs) Account)

4. Net credit balance of Rs. 16,500 (i.e., Rs. 1,56,500 – Rs. 1,40,000) in
VAT Payable A/c is disclosed in the balance sheet as below:
Extracts from the Balance Sheet
Current Liabilities:

VAT Payable Account 16,500

Dear All User,

                    How to Pass a Entry in Tally 9.0 of VAT Refundable & ADD VAT Refundable for Opening Balance For the Year 2014-15. 

Please Replay Me Sir..