Vat and income tax

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Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2013 Can VAT paid claimed as expense in Income Tax Act? Also please give entries regarding VAT treatment.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 January 2014 VAT payment is allowed as deduction u/s 37(1) subject to Section 43B, i.e., the VAT should be paid on or before the DUE date of filing the return.

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2014 please also give entries regarding VAT

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 January 2014 1. At the time of purchase
Purchase A/c Dr
Input VAT Receivable
To Creditor

2. At the time of sale
Debtor A/c Dr
To Sales
To Output VAT Payable

3. Adjustment of VAT
Output VAT Payable
To Input VAT receivable