Hai,
Can I know what is the accounting treatment of VAT paid on inter state purchases?
Thanks in advance
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Vat in inter state purchase
Replies (4)
we can't claim vat/cst for input claim so vat paid on interstate purchase is a part of purchase.
(1)
Purchase a/c dr.
CST/VAT paid a/c dr.
To sundry Creditors
(2)
Purchase a/c dr.
To CST/VAT paid
You can also entered a single entry for that.
so is the VAT paid is considered as cost of purchases?
Hello Varsha,
First of all Please note that In Inter State Transactgions Tax Levy is known as CST and not VAT. Yes CST paid is considered as cost of purchase.
Yes cst consider as part of purchase.
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