Vat input closing entry

The Vat input will be written off as follows:

VAT payable account

                      To VAT credit receivable account

The VAT Input shall be written off to the Profit & Loss account by passing the following JV :

VAT Expense A/c          Dr  XXX

   To VAT Input A/c                 XXX

(Being VAT Input A/c transferred to Expense A/c)

Regards,

Devendra Kulkarni

Hello sujatha,

With refference to the above query, the following entry may be passed as reversal entry for the Input vat what u have paid and waiting for it to be adjust in output tax liablity and there is no scope of output so...

as u know when u paid input tax in purchases,   (1)     Vendor/seller a/c   Dr             xx

                                                                                                           To Input vat a/c                       xx

                                                                                                 (being vat paid on purchases)

    so, now u want to reversal the afore said transaction from the books since there is no scope of Output here as follows

                                                        (2)       Input vat a/c Dr         xx

                                                                                To Vendot a/c            xx

                                                               ( being reversal of input vat...)

Thereafter u need to book the same amount to P&L a/c as expenses/loss by passing the JV entry

                                                         (3)   Input vat a/c Dr  xx

                                                                            To P&L a/c

                                                            (being input vat transferred to P&L a/c..)

I conclude.

Regards

Hari prasad.J