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Treatment of purchase returns in vat return

chandramouli (article assistant) (30 Points)

12 August 2011

what is the treatment of purchase returns in vat return ?. can we adjust the purchase returns or sales returns aganist output or input. explain clearly?

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9 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 12 August 2011

Dear Chandramouli,

In case of purchase / sales returns the VAT element should also be reversed (Reverse Entry). But the VAT shall be elgible for Input before six months from the date of return of goods and date of sale / purchase of ggods.

Secondly, the Input / Output VAT shall not be eligible for credit, if the date of return of goods is after six months from the date of purchase / sale

Following JV is to be passed :-

In case of Purchase Return

Sundry Creditor A/c Dr.

To Purchase A/c Cr.

To Input VAT A/c Cr.

(Being Goods returned by us)

In case of Sales Return

Sales A/c Dr.

To Sundry Debtor A/c Cr.

To Output VAT A/c Cr.

(Being Goods returned by our customer)

Regards,

Devendra K

1 Like

Nitin Grover (CS) (1228 Points)
Replied 13 August 2011

output VAT will be debited in case of Sales Return

1 Like

CA Saiyum khan (Practicing CA) (685 Points)
Replied 15 August 2011

Input VAT as well as Output VAt has to be reversed in the period in which purchase / sales return take place.

Aarkay Food (Account Manager) (22 Points)
Replied 23 October 2015

Nitin Grover is right.

Output VAT will be debited in Sales Return Entry.

Entry will be made as denoted.

Sales A/c Dr.

Output VAT A/C.Dr

To Sundry Debtor A/c Cr.

(Being Goods returned by Debtor/Customer)

sandeep (B.Com) (22 Points)
Replied 20 December 2016

sir i want to know the time limit for purchase and sale return

CA Vishal Mehta (CA) (123 Points)
Replied 21 January 2017

Where will purchase return be shown in.actual.return ? Negative amount in purchase or in sale?

Rajneesh kaushik (Accountant) (30 Points)
Replied 08 April 2017

if we reverse the interstate sale thant what should be cst treatment.

kiran kanithi (14 Points)
Replied 19 May 2017

i have return some (x) goods in arpil but am purchased goods in march-2017 filed vat return too. Now how can decrease purchase in march-2017 or can i show the details in april return

kiran kanithi (14 Points)
Replied 19 May 2017

i have return some (x) goods in arpil but am purchased goods in march-2017 filed vat return too. Now how can decrease purchase in march-2017 or can i show the details in april return