Hi I have a doubt..Let me ask you it through an example.
Output Tax collected-1,00,000
Input Tax paid- 50,000
Vat paid- 40,000
Vat payable- 10,000
Is it possible to show the vat paid (Input Vat+ Vat paid) to the debit of P&L a/c. Output Vat credit of p&l A/c..Vat payable in liability side????If we show like this we are showing the income at a higher level no..I feel if we want to debit Vat paid to P&L ,, we must take the VAT payabl also as vat paid..Otherwise the balancesheet wont tally...Entry VAt paid A/c Dr to VAT payable A/c
IS THERE ANY CHANCE VAT PAID COMING ON DEBIT SIDE OF P&L A/c?To the best of my knowledge we cant deduct VAT as a business expenditure..
I ve taken the net amunt of Rs.10000/- and shown it as a current liabilty.Sir wanted me to present it in a better way!!!
HAPPY PUJA
CAclubindia
