02 November 2009
A soya Company purchases Soya Seeds from the supplier and supplier charge VAT @ 4% in MP. Company makes payment to supplier without VAT and issue TDS Certificate for the VAT Amount as per Section 26-A of M.P. VAT Act. Summarize position is as follows:
Purchase Value 20 M.T. @ 17,000/- per M.T. = 3,40,000/- Add: VAT @ 4% = 13,600/- Total Purchase Value = 3,53,600/-
Company is making payment of Rs. 3,40,000/- to supplier and issuing TDS certificate of Rs. 13,600/- to supplier.
26 November 2009
(1) If Input Tax Credit Available (A) Purchase @4% A/C Dr. 340000/- ITC on Our @4% A/C Dr. 13600/-
To Party A/C Rs.340000/- To VAT TDS Payable A/C Rs. 13600/-
(b)when TDs deposited to Govt Account VAT-TDS Payable A/C Dr. Rs. 13600/- To Bank A/C Rs.13600/- (2)If Input Tax Credit NOT Available Purchase @4% A/C Dr. 353600/-
To Party A/C Rs.340000/- To VAT TDS Payable A/C Rs. 13600/-
(b)when TDs deposited to Govt Account VAT-TDS Payable A/C Dr. Rs. 13600/- To Bank A/C Rs.13600/