VAT IS WHICH RELATED ITEM

This query is : Open

rajesh (Querist)
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03 August 2009 DEAR SIT/MADAM

1. VAT IS POSTED IN P&L A/C OR B.S.

2. AN ASSET PURCHASED VAT DEALER BUT SAME ASSET WAS SOLD NOT VAT DEALER AT THIS TIME WE COLLECT VAT WHO IS STOCK PURCHASE US

IWANT FULL DEATILS OF VAT PLEASE ANY MATERIAL

THANKS IN ADVANCE

Rajesh.P

Rajesh.P (Expert)
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03 August 2009 Regarding ur first qn. VAT may be included in Trading & P&L a/c. "Input tax should be shown on the debit side (expense side) and output tax should be shown on the credit side (income side). At the end of the year balance VAT payable or refundable should be shown in the Balance Sheet as current liability or current asset as the case may be.