Vat

This query is : Resolved

Chintan Patel (Querist)
Follow

26 December 2012 Is VAT added to purchases account and will it be taken into consideration for valuing closing stock?

-THANKING YOU IN ADVANCE

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
Follow

26 December 2012 If you wish to avail Input Vat Credit, debit it to separate account. It is never added in closing stock. VAT is on sale of goods.

Chintan Patel

Chintan Patel (Querist)
Follow

27 December 2012 So,it is not added to purchases,is it?
If the firms add it to the purchases,then the VAT paid for purchasing those goods must be taken into consideration for valuing closing stock,right?Please correct me if I am wrong.

-thank you SIR...

Upgrade to CAclubindia Pro. Subscribe Now!

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
Follow

27 December 2012 If the same is not available as input credit or if assessee does not wish to avail such credit, then it can be added to the cost.

Message likes : 1 times