Purchases entry

I have a cash memo purchases from a "COMPOSITE DEALER" & it is a tax invoice without mentioning VAT rate & VAT amount but he has mentioned their VAT TIN No. in bill. How to pass the purchase entry without knowing VAT rate or amount?
Replies (9)

You check your bill once again. If its tax included.

Another point of view some dealers sales some items without tax calculated... and finally you call your supplier and confirm the bill details. 

Also cash memo's are cannot shown tax related figures. Show you enter expense.....

Since this is a composite dealer, input credit can't be claimed. But in any other case, you can do this:

You know where you purchased it from. You know what the goods are. Ergo, you can find the rate by going to respective state VAT website.

Assuming that the invoice amount is inclusive of tax, calculate gross exclusive of tax and pass the entry.

Purchases Dr.

VAT Input Dr.

To Bank Ac

input can't be taken on purchases from composite dealer
so there is no need to know rate of tax
yes

this is the disadvantage of purchases made from composite dealer that you can not take credit...and it is the basic principle that for amount of which you can not take credit....shall be added to your cost...so in your case,whole paid amount will form part of cost.

calculate backwards

Dear Expwerts,

 

I think you all did not understand his real problem, he is asking the way of accounting , ie in which way it is recorded in books under which tx rate, ( even in VAT Rtn ) and not asking about ITC .

Originally posted by : SYAMKUMAR.S
Dear Expwerts,

 

I think you all did not understand his real problem, he is asking the way of accounting , ie in which way it is recorded in books under which tx rate, ( even in VAT Rtn ) and not asking about ITC .

Dear Syamkumar.,

If the bill is not Taxable Bill. How to accounting under Tax head...?

Also I siad, Call the supplier after account to Expense....

Yes sir, you are right

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