Non Reversal of VAT INPUT in Purchase Return

DVat 3025 views 1 replies

Dear Sir/ Madam,

I am facing problem in one of VAT Entry , Need Help from you Pepoles.....

I have received a Credit note Against Purchase Return , as the purchase is more than 6 months old, so the supplier didnt reversed the VAT TAX, they issued the credit note only for the Basic Value/ Assessable Value, Now the Problem is i also have to forward this credit note to my dealers.

As the VAT TAX is not reversed in Credit note becoz of that the Purchase Account & Input Vat Tax account will not match, if i enter the credit note then the purcase account will be decreased but the input tax account will be on the higher side..

So,, kindly help me on this issue ,,, many many thanks ,,,


Replies (1)

In my opinion, you have to make reverse entry for the credit note even after 6 months   so that puchase and input both wiil be reduced in books . but in vat return reverse the input as ineligible input tax


CCI Pro

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