Pls clarify my query. Should we debit net VAT (input credit - output liab) to the p&l as a separate exp or should not be debited pls clarify me whether we are acting as agent between customer and govt to pay the net VAT. pls also clarify me where should I debit every month's sales tax liabilty also clarify me whether it comes as a item of exp in p&l or not?
Menu
VAT
Replies (3)
Hi,
In General,
Input vat needs to be considered as "Current Assets"
Output vat needs to be considered as "Current liabilities"
1) Assume a scenario, where my Ouput vat is morethan Input vat which is actually VAT payable (under Current liabilities)
Then
Dr Output vat
Cr Input VAT
Cr VAT payable
2) Assume another scenario, where my Input vat is morethan Ouput vat collected which is actually VAT Refundable (current Asset)
then
Dr Ouput vat
Dr VAT Refundable
Cr Input vat
Also i think its not an P & L item, its Balance Sheet Item.
Please correct me if I am wrong.
With regards,
Subramanya R
agree with subramanya
Recent Threads
- Hi i have some doubt about my microsoft exam?
- Period of holding of residential flat and its acqu
- Heard & Seen Around – Your Daily Economi
- ITRs for AY 2025-26 filed in September 2025 not pr
- Heard & Seen Around – Your Daily Economi
- Best NISM course for an Accountant
- Calculate IT on LTCG AND STCG for the FY 2025-26
- Heard and Seen Around - Your Daily Economic Quick
- Returning to India - Residency confusion
- About CMP-08
Related Threads
CAclubindia
