Service tax and vat

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Querist : Anonymous

Querist : Anonymous (Querist)

02 June 2012 hello, plz guide me in service tax and vat.i am ipcc student. i am going to attempt in nov2012.plz guide me in how to proceed in these chapters and the logic behind journal entries in vat.

CA Harish Suwalka

CA Harish Suwalka (Expert)
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05 June 2012 focus on practice manual for practical problems of the taxation subject, and read a latest reference book like- TN manoharan etc. for concepts

: VAT:
vat paid on purchase is treated as an asset hence debited
purchase a/c debit
VAT ITC a/c debit
TO supplier

when sales is made, VAT is recievable from party and payble to dept.

party a/c debit
to sales
to VAT payble

in the end of month/qtr

the difference in both VAT a/c is settled and if vat payble is exceeds from ITC(input tax Credit) than this entry is passed for vat payment

vat payble a/c debit
to bank
to vat ITC a/c

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