plz tell me wht shall be the accounting entry for the indirect taxes such as service tax, excise, custom,vat etc. plz reply
akash patni (industry) (74 Points)
11 July 2009plz tell me wht shall be the accounting entry for the indirect taxes such as service tax, excise, custom,vat etc. plz reply
prasanth
(student)
(86 Points)
Replied 13 July 2009
For V A T
1) make entry while you purchase
vat input a/c dr xxxxx (under current asset)
to purchase a/c xxxxx
2) make entry while sale
sales a/c dr xxxxxx
to vat out put a/c xxxxxx (under current liabities)
The difference you have to pay i.e.,vat output--vatinput
Also you can make 2 entries to find difference by transfering the vat entries(i.e.,vat input,vatoutput)
a)vat payable a/c dr xxxxx
to vat input a/c xxxx
b)vat output a/c dr xxxxx
to vat payable a/c xxxxx
Finally you have to pay the amount which stands in vat payable a/c
CA Sandeep Thakur
(Managment Trainee)
(188 Points)
Replied 18 September 2009
hello dude
for this first of all .if the company is making purchases and claiming input on the purchsesmade then entry is to be passed
purchase a/c Dr 100
cenvet credit dr 8.24
to party 108.24
the output liablity for excise is as under
cash a/c 330
to excise duty liablity 30
to sals 300
the input and output ed adjusted and difference have to pay 5th of next month .
for further clarification ,,, ask bindasss
Regards
Kailash Mourya
(Accountant)
(62 Points)
Replied 16 December 2009
For Vat ,
Make entry while you purchase
Purchase a/c Dr.xxx
Input Vat a/c Dr.xxx
Supllier Party a/c CR.xxx
Make entry time of Sales
Party ( buyer) a/c Dr.xxx
Sales a/c Cr.xx
Output a/c Cr.xxx
& at the time month Closing create a ledger Vat adujustment a/c & make entry as under.
Vat outpur a/c Dr. 100
Vat input a/c cr. 80
Vat audujustment a/c cr.20
Now Rs.20/- Cr. Balance is payble deposit to Govt a/c thourhg Challan
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
CAclubindia
