Vat

Your question is incomplete. However, I will try to give u basic info. If VAT is paid on raw materials/components etc in connection with manufacture/trading, such vat can be availed as input credit and same is not treated as expense. On the other hand, if vat is paid on expenses (other than manufacture/trading) then such vat has to be treated as expense. Hope it is clear.

Thanks Poornima. if we are purchasing for Printing & stationery and other such office expenses how the same has to be shown in the balance sheet under what head? please reply.