a company has purchase machinery parts and he was pay vat @5 %. But company has record vat receivable and actually vat are not refundable, finally company have treated as VAT expenses and debited to P & L. what is right or wrong?????
20 June 2015
If it is for machinery it would be capitalised. You have indicated for machinery parts unless they add value to the machinery they are expensed.
CAclubindia
