A fixed asset is bought for 100000 & vat is 12%.
State law says 50% cenvat is available for CY and balance over the next two years.
Entry passed is:
Fixed asset 100000
vat 12000
To Bank/Vendor 112000
What accounting entries are to be passed for
1. recording vat in CY for cenvat credit and
2. C/f balance vat for following 2 years.
(Q. is not state specific - for general understanding only).
Menu
Vat treatment on fa
Replies (1)
Hi,
Record it as "VAT credit" in d above entry and group it under asset...
at d end of 1st year wen u want to utilise 50 %, record it as,
VAT paid a/c (expense group) dr 50%
to VAT credit A/c(Asset group) 50%
so at the end of the year unused VAT credit stays as an asset which u can utilise passing the same entry...
Correct if dat view was incorrect...
Recent Topic
- Business income source for husband and wife
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
Related Topics
CAclubindia
