Calculation

This query is : Resolved

Murtaza I Bhagat (Querist)
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19 October 2009 Dear sir/s,

I want to Know When Tax Paid on Purchase of 1000/- for example. and takes from sales rs.800/- so diff. of 200/- is credit

My query is that rs. 200/- where we have to take in Tax or in Additional tax Credit?
or take Consolidate.

Thanks in advance

M Prabhakar Menon

M Prabhakar Menon (Expert)
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20 October 2009 The correct Journal entry is :
Purchse of X Dr 800
Input Vat Dr 200
To Sundry Creditor 1000

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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20 October 2009 Dear Murtaza,

It seems that you mean your input tax on purchaes is 1000 and output tax on sales is 800.

If I am correct that unadjusted input credit of Rs 200 can be adjusted against future sale or can be claimed as refund if there is no further sale.

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