conversion of stock into assets

This query is : Resolved

Vishal Chaturvedi (Querist)
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28 February 2009 Dear Frnds,My client had some goods in stock.while they purchased them VAT credit availed.but after some month in same year they converted them into Assets for company use.so plz do give me what entry to be passed with what amount and also treatment of VAT credit already availed.thanx in advance

CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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01 March 2009 The VAT credit on the stock converted into Assets should be reversed (unless these can form part of Capital Goods Inputs and eligible for VAT credit) for this VAT Receivable amount is to be Credited and respective Assets Accounts to be debited for the amount of credit reversed.