22 May 2010
Respected All, I received the bill from OMC as under, Value of Iron Ore Rs.5492114.50 Royalty Rs.292404.42 VAT Payable@4% Rs.231380.76 Entry Tax Rs.60159.00 Analysis Charges Rs.1340.50 Labour WelfareCessRs.3797.46 Edn. Cess Rs.75.95 SHE Cess Rs.37.97 Invoice Amount Rs.6073488.00
26 May 2010
The answer will be in 2 ways - if u have VAT payable on ur sales or not. If u have VAT payable, the entry would be Ironore A/c Dr (Inventory) assuming it as inventory 5,842,108 VAT input credit A/c Dr 231,380 To Vendor A/c / Bank A/c 6,073,488 If u dont have VAT payable, there wont be any VAT input credit and the total amount will be the cost of the inventory.