30 June 2010
If Vat & Service Tax are charges in Indirect Expenses suche as Printing Stationery,Repairs etc,Service tax charges in Maintanance,Repairs,Rents Etc.How should the Expenses Accounted.Whether setoff or Benefit can be taken.Please give some Logic.how should i account.
Muncipal Tax Paid what should be the account head.
30 June 2010
If VAT credit is available, in place of debiting the same to expense account, debit to INPUT VAT Account, under current asset. Same with service tax, account head being "CENVAT CREDIT".
01 July 2010
Alternatively if you record all vatable expenses as purchase in purchase register first, and then pass journal entry on same date debiting expenses acc and crediting vat net acc. You will also be able to file accurate sales tax return and also reconcile your input credit account and prepare proper details for VAT Audit at earliest.
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