Vat reverse

1. You must be referring to softwares like Tally wherein this method is adopted
2. If yes, input and output VAT are mentioned under duties & taxes for ease of accounting (i.e. software demands them to be so for ease of accounting and report generation)
3. However, the right group under which input vat can be classified for the purpose of balance sheet is under other current assets.
4. However, for the sake of accounting and report generation, you may opt for the method available in the software.

Thanks

Poornima, is t right to group the CST 2% (purchase) in duties and taxes, as the same is part and parcel of Purchases?

I think it is better to group under Purchase account rather than duties & taxes. But software (like Tally) is quite confusing when it comes to such transactions I think.