Vat & cst

How should I adjust input sales tax, output sales tax & payment of sales tax in Accounts?

Regards

Replies (7)

Account as follows:

On purchases: Dr. Respective purchase a/c

                       Dr. Input Tax Credit a/c

                      Cr. Sundry Creditor a/c

 

On sales: Dr. Sundry Debtor a/c

                Cr.  Respective Sales a/c

               Cr. VAT Collected a/c.

 

On month end: [for the amount input credit (or) vat collection, whichever is lower]

                        Dr. VAT Collected a/c

                        Cr. Input tax credit a/c

[if input credit is higher, this is to be c/f, if vat collection is higher, this is to be remitted]

agreee with above

How should i incorporate them in the financial statements?

Regards

VAT Input credit to be grouped under current assets.

VAT collection account to be grouped under "Duties & Taxes" - Current Liabilities.

In the month end, only one account will have the balance and that will automatically fall in the balance sheet, once you pass the necessary entries.

yes, i also agree with miss. k chitra...comments...

 

Agree with K. Chitra

Are there any alternative methods?

Regards

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details