If a Private limited co. purchased TEA packets for office use then how it should be shown in accounts. Should i book it as Other purchase or should i treat it as expenses. I also wan't to claim VAT input credit from this purchase so how should i treat this transaction?
3 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 27 April 2012
Tea packets consumed for office use, cannot be trated as purchase, as it is not reltaed to your business. You can show it as office expenses of as Staff Welfare under indirect expense.
@ CA. $ahar$h @
(Student)
(338 Points)
Replied 27 April 2012
Agreed with Mr. Girdhar. Vat credit can be taken only if u deal in the good or the Captial good has helped you in ur business.
V K Bajaj
(Accountant)
(1540 Points)
Replied 14 May 2012
Giridhar is right so it is your expenses under STAFF WELFARE in full. However, you can apportion it into Staff Welfare and Business Promotion as you must be serving tea to clients also.
contact @ vkbajaj.co.in
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