Purchase vat & input vat

This query is : Resolved

Guest

Guest (Querist)

26 December 2012 Dear Sir / Ma'am,

I am a bit confused here. I understand that in tally when we have to enter the Purchase VAT entry, we put that under Purchase Account & Heading in tally.

But when we also debit the Input VAT @ (any percentage) that would go under the head Duties & Taxes or will that also go under Purchase Account?

I would really appreciate if you can clarify this point of mine.

Guest

Guest (Expert)

04 January 2013 Either way it is possible. The possible ways are:
1. Add VAT to purchase and pass a Journal Entry to transfer the VAT amount to Input VAT A/c.
2. Create a ledger of Input VAT under the head Duties & Taxes.

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