Pankaj Arora (Learner) (3134 Points)
09 December 2011Dear All
we have short received Vat refund of f.y. 08-09 from sales tax office. our refund was 84252.00 but we received 81141. its short of Rs. 3111.00 How to adjust of remaining Vat refund shall we carry forward it to next f.y. or it can be write off. if it can be write off what will be the accounting entry to write of remaining vat refund amount.
Prakash
(Chartered Accountant)
(560 Points)
Replied 09 December 2011
There is no point in Carry forwarding it further, seems asst for that year completed
Do, write off that balance, to do so here is the adjustment entry
VAT Paid A/c or VAT Credit Written off A/c (Revenue Nature) Dr 3,111
To VAT Credit A/c ( The account in Balance sheet) Cr 3,111
Pankaj Arora
(Learner)
(3134 Points)
Replied 09 December 2011
vat paid amount rs.3111 will allow under income tax act?
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 22 December 2011
All Government taxes are allowed in IT Act, provided the same is not penalty/interest nature.
regards,
rengaraj r.k
amol santre
(student)
(159 Points)
Replied 18 July 2013
The Vat refund in question is always shown as asset.The refund received should be added to income by virtue of section 41 in the year of receipt by deducting such short receipt.Thus if the recipt is taxed then the write off is allowed.
CAclubindia
