Vat Payable

This query is : Resolved

survesh (Querist)
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28 December 2009
Dear Friend

My firm is a trading firm of Turnover 70,00,000.00.I have to pay a VAt Tax.I want to pay Vat on my sales after adjust.of Purchases Vat.Please say whether I should Pass a Journal Entry for 6 month Vat payable say april to Sep or direct to Indirect expenses Ac

Sale vat Dr,(P/L Ac)
Purchase vat Cr,(P/L Ac)
Vat Payable Cr. (Liablities)

is above Entry correct. oR

Vat Paid (Indirect Expenses)

Is Vat Grouped in Duties & Taxes Or In P/L Ac Pleas give my Correct entry for Vat Ac

Arjuna Raina

Arjuna Raina (Expert)
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28 December 2009 The entry would be
Party A/c........dr
To vat payable
To sales
(being goods sold)

If goods are purchased entry would be
Purchase A/c.....dr
Input Credit(vat)....dr
To party