Treatment of purchase returns in vat return

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

output VAT will be debited in case of Sales Return

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

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)

 

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

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

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

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

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