compound entry

This query is : Resolved

vikas (Querist)
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07 October 2009 Dear Sir ,
i am working with telecom company here i face some probem while doing this entry
plz help
my item value is 5000
add vat on 90% 607
add service tax on 33% 170
total 5777

Shyam Lal Naik

Shyam Lal Naik (Expert)
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07 October 2009 Presuming that you are entitled to vredit on VAT and Service tax a possible entry will be as follows :

Purchase A/c Dr. 5000
Input VAT Dr. 607
Cenvat Suspense Dr.170
To Suppliers A/c 5777

On payment of the bill, pass the following additional entry

Cenvat Credit Dr. 170
To Cenvat Suspense 170