Vat journal entry for trade discount got in puchase

1631 views 3 replies

Dear All,

I would like ask that if vendor get trade discount on rate difference from seller then what entry should be journlised for vat paid on this trade discount 5% suppose the difference was 100000+5%=105000 this 5000 amount paid to sale tax department how this will adjust with proper all necessory entries please help wainting for solution

Thanks in advance

Amit kumar

Replies (3)

Hi Amit, whats meaning of vendor get trade discount on rate difference from seller.

You are saying vendor and seller. Vendor and seller are both same. what means of you.

 

I mean to say that suppose we purchase goods from party on rate @ 1500+5%=1575 and after some time they issue a credit note for rate difference we get 15+5%=18 total but in this CN they mention vat 3 ruppe which liable to pay sales tax deaprtment vat payment we paid it to concern department but one thing is which is main how will this transaction will adjust please give me complete solution if possible

Thanks in Advance

Amit Kumar

on purchase, you know below entry will be pased:-

Purchase A/c Dr 1500  
VAT input A/c Dr 75  
  To Trade Creditor     1575

 

and on receiving the credit note, as you know you will pass the following entry:-

Trade Creditor  A/c Dr 18  
      To Purchase      15
      To VAT input     3

 

Then now you are saying that 3 has been deposited to concerned department. Then now what problem here. 

As you have paid 3 to department, then now you are remain eligible to claim the VAT input for 75. 

So now your purchase amount will be reduced by 15. and supplier balance will also reduced by 18.

I hope your query is sloved out.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details
Company
Featured 16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT, CA SemiQualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT , CA SemiQualifie

Vakilsearch.com

Chennai

CA Inter

View Details
Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details