Vat

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MANISH KHEMANI

MANISH KHEMANI (Querist)
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24 February 2012 Sir,
What neccesary enteries should be done for up vat.(input, output & capital purchase)

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)
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28 February 2012 For Purchases

Purchase Dr. 100
Input Vat Dr. 4
To Party or Bank Account 104

Capital goods Dr. 103
Input Vat Dr. after retention say 1
To Party / Bank account 104

If Capital goods is Plant and Machinery on which full setoff is available -

Plant & MAchinery Dr. 100
Input VAt Dr 4
To Bank or Party A/c

For Sales

Party Dr. 104
to Sale 100
To Output Vat 4

Then Vat adjustment Entry for netting Input and Output VAT like

Output Vat Dr
To Input Vat
To Cash / Bank