Vat paid after tax audit - journal entry

Hello Everyone, 

Recently we are done with VAT audit for F.Y. 2012-13, and in some construction companies VAT liability was there and was paid accordingly. But finalization of books of accounts of F.Y. 2012-13 has already been done during tax audit, so now what will be the journal entry for VAT paid for the above period?

Thanks in advance

Replies (2)
According to Section 43 B of the Income Tax Act, 1961, any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, shall be allowed (irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him) in previous year in which such sum is actually paid by him. Here, the VAT liability was paid belatedly after the finalization of accounts for F.Y.2012-13. Hence, the benefit for the same could not be taken in F.Y.2012-13. The journal entry in this case would be simple : - VAT Accrued (F.Y.2012-13) To Cash / Bank You need to mention the period so that you can claim the benefit of VAT paid in F.Y. 2013-14

Sia Raman Mam, Thanks a lot for prompt and simple reply.... Helped a lot :), What if Interest was paid on this late of vat payment, what will be the treatment ?Will there be a same treatment in case of service tax paid under 'Service Tax Amnesty' and also paid late in regular way?

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