I am from bangalore we have purchased local goods in bulk in the month of feb 2014, after words we have not purchased any thing, but every month selling the goods, so every month we are getting VAT carry forward so what is the journal for every month i have to post. can you pls help me.........
10 Replies
CA Parul Saxena
(CA)
(8488 Points)
Replied 14 May 2014
Purchase A/c Dr.........................................
Vat Input Dr.(Under Current Asset).........................
To Vendor................................................................................
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 14 May 2014
The Input vat and output vat should be under duties and taxes in tally.
At end of month.
Dr output vat ( make it zero ) and
Cr vat payable ( under duties and taxes)
Dr vat payable
Cr input vat ( make zero )
Balance in vat payabe a/c( in your case debut balance will be carried forward)
At end of the year
Transfer the balance in vat payable a/c to vat refundable a/c under current assets( or duties and taxes ). In new year , pass reverse entry
Dr Vat payable
Cr vat refundable
REGARDS RAJ CHETAN DOSHI
email: rajcdoshi @ gmail.com
ACS Gaurav Jain
(company secretary)
(551 Points)
Replied 15 May 2014
At time of purrchase
Purchase a/c dr.
Vat input a/c dr.
To abc ltd cr.
At time of sales
Xyz ltd(purchaser) dr.
To sales(goods) cr.
To vat output cr.
ACS Gaurav Jain
(company secretary)
(551 Points)
Replied 15 May 2014
Also you can create input vat credit account just like cenvat credit account in case of exsice. Transfer the input and output vat end of every month to that account.
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 15 May 2014
Purchase
Purchase Dr
Input vat Dr
Creditors Cr
Sales
Debtor Dr
Sales Cr
Output vat cr
End of month
Output vat Dr
Vat payable Cr
Vat payable Dr
Input vat Cr
If vat payable a/c has credit balance pay the amount.
And vat payable a/c has debit Balance let it be.
At end of the year
If vat payable has debit balance , then
Vat refundable Dr
Vat payable Cr
In new year.( Transfer closing balance )
Vat payable Dr
Vat refundable Cr
All vat accounts to be opened under Duties and taxes.
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 15 May 2014
Purchase:
Purchase Dr Input vat Dr Creditors Cr
Sales:
Debtor Dr Sales Cr Output vat cr
End of month:
Output vat Dr Vat payable Cr
Vat payable Dr Input vat Cr
If vat payable a/c has credit balance pay the amount. And vat payable a/c has debit Balance let it be.
At end of the year:
If vat payable has debit balance , then Vat refundable Dr Vat payable Cr In new year.( Transfer closing balance )
Vat payable Dr Vat refundable Cr
All vat accounts to be opened under Duties and taxes.
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 15 May 2014
Gaurav sir, your answer is also right. Here the way of book keeping is different. Final amounts remain same. Its just a better way of presentation. :)
CA Saroj Kumar
(Keen to learn something new every moments)
(2588 Points)
Replied 15 May 2014
Dear all looks here illustration given below
might this clear your all doubts
A dealer purchases the following goods in a State during the month of March 20x6:
Particulars Total Input Tax Net
4% VAT Goods of Rs. 10,40,000 VAT - 40,000 Net Amount - 10,00,000
12.5% VAT Goods of Rs. 9,00,000 VAT - 1,00,000 Net Amount - 8,00,000
VAT Exempt Goods Of Rs. 2,00,000 -VAT-Nil Net AMount 2,00,000
Total Amount of rs. 21,40,000 VAT - 1,40,000 Net Amonut 20,00,000
2. The input tax paid on purchase of goods is eligible for VAT credit.
3. Sales made by the dealer during the month are as below:
Particulars Gross Output Tax Net Sales
Amount Collected Consideration
(Rs.) (Rs.) (Rs.)
4% VAT Goods Of Rs.11,44,000, Vat of Rs. 44,000 Net Amount 11,00,000
12.5% VAT Goods Of Rs.10,12,500 Vat of Rs.1,12,500 Net Amount 9,00,000
VAT Exempt Goods Of Rs. 2,50,000 Vat of Rs. Nil - Net Amount 2,50,000
Total 24,06,500 VAT 1,56,500 Net Amount 22,50,000
1. The dealer passes the following entry to record the goods purchased and input tax paid thereon:
4% VAT Goods Purchase A/c Dr. Rs. 10,00,000
12.5 % VAT Goods Purchase A/c Dr. Rs. 8,00,000
VAT Exempt Goods Purchase A/c Dr. Rs. 2,00,000
VAT Credit Receivable (Inputs) A/c Dr. Rs. 1,40,000
To Bank A/c Rs. 21,40,000
(Being goods purchased and input tax paid)
2. The dealer passes the following entry to record the goods sold and VAT collected thereon:
Bank A/c Dr. Rs. 24,06,500
To 4% VAT Goods Sales A/c Rs. 11,00,000
To 12.5 % VAT Goods Sales A/c Rs. 9,00,000
To VAT Exempt Goods Sales A/c Rs. 2,50,000
To VAT Payable A/c Rs. 1,56,500
(Being goods sold and VAT collected)
3. The dealer passes the following entry to record the liability for VAT
payable met by using the balance in the VAT Credit Receivable (Inputs)
Account:
VAT Payable A/c Dr. Rs. 1,40,000
To VAT Credit Receivable (Inputs) A/c Rs. 1,40,000
(Being liability for VAT payable met by using the balance in the VAT Credit Receivable (Inputs) Account)
4. Net credit balance of Rs. 16,500 (i.e., Rs. 1,56,500 – Rs. 1,40,000) in
VAT Payable A/c is disclosed in the balance sheet as below:
Extracts from the Balance Sheet
Current Liabilities:
VAT Payable Account 16,500
Vikas Upadhyay
(C.A.)
(227 Points)
Replied 14 December 2015
Dear All User,
How to Pass a Entry in Tally 9.0 of VAT Refundable & ADD VAT Refundable for Opening Balance For the Year 2014-15.
Please Replay Me Sir..
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