Means our output vat liability is 4000 and if we adjust short payment (Rs.3411)with output vat it comes vat liability Rs.589 and if we deposit same. To baad mein koi penalty to nahi lage gi. Na sir kyunki hamari is f.y. ka vat payable 4000.

Originally posted by : pankaj
	Means our output vat liability is 4000 and if we adjust short payment (Rs.3411)with output vat it comes vat liability Rs.589 and if we deposit same. To baad mein koi penalty to nahi lage gi. Na sir kyunki hamari is f.y. ka vat payable 4000.

short payment is adjusted by vat office in other heads , its not your money now ............

you have to pay the current tax liability in cash only 

In simple words we can not adjust it with any head

Originally posted by : U S Sharma
	Originally posted by : pankaj hey bro if it is short refund due to Interest Penalty dan accounting entry will be as u told. but vat a/c will be input vat a/c or output vat a/c if it has to be adjust in quarter end suppose our input vat is 5000 and output vat is 9000 dan we have to adjust is with output vat. so it will not effect our current Vat Liability Vat A/c. Dr. 3411 Vat Refund  Cr.      3411 the refund is specified for a perticular year and after this refund we can say "gross settlement in full" keeping the balance as zero to be carried forward.    taking the short payment to carried forward will make headache for coming years in accounting.

in plain language it was cited above !!

Wat do u mean by gross settlement in full?

Originally posted by : pankaj
	Wat do u mean by gross settlement in full?

when a refund is issued to any dealer, there is no balance for the period remaining, so u cant carry forward the short paid amount, 

once again i ask u to chek the assessment order issued by vat officer for reason of such short payments, your refund is issued on the strength of that order only. 

Ya I got ur point sir but I m just asking if its due to interest & penalty dan how will it adjust could please tell me with accounting entry of it bc as u said we cant carry forward it?

Originally posted by : U S Sharma
	Originally posted by : pankaj   Is it possible from sales tax dept. end that they did not give one invoice vat credit or wat more reasons are for short Vat refund. If its possible wat will be accounting entry? reasons may be numerous, vis disallowance of input credit for negetive list, interest, penalty, or value additon to any specific area,    for accounting purpose,    vat account Debit ..............................................xxxx ( short amount) to vat refund account ....................................................................xxxx   vat account will reflet in current year P/L account as payment against sales or assessment order.

This entry will be done on the date of receipt of payment, and will effect in the year of receipt of refund, 

say we have to pay 10000/- towards vat in cash after adjusting input credit, then u have to show this in P/L account , again we paid 3000/- against assessment order passed by officer for various reasons, so the total gone to 13000/- 

this is indirect expense in P/L account, and short paid amount will be account in same head. i.e VAT account of P/L of current year, as the final accounts of the previous period has done , keeping the old balance of refund accounted. 

Ok to vat account (short) ke naam se ledger create karke under indirect exp. Mein entry karne k baad balance jab final hogi to ye expense disallow to nahi hoga na?

Originally posted by : pankaj
	Ok to vat account (short) ke naam se ledger create karke under indirect exp. Mein entry karne k baad balance jab final hogi to ye expense disallow to nahi hoga na?

its just adjustment entry, unless u comply with final assessment order of vat office, nature of clause cited for short payment , one can not comment on disallowance. 

Ab main aapko starting se entry batata hun kahin galat ho to bata dena.

Input vat Dr.10000

Output vat Cr.          6000

Vat refundable Dr. 4000

Vat Input Cr.                      4000

Bank A/c.  Dr. 3200

Vat Refundable Cr.      3200

( Being Short vat refund recd.)

Vat A/c (short) Dr.   800

Vat refundable Cr.            800

(being short refund adjusted)      

entires are in order but remove the "(short)" word, as the vat short will get added with current year vat liability ( or vat output paid in cash ) if any and would get allowed as the order is of current date,  

Ok suppose out current vat liability is 4500 to ye entry karun

Vat payable dr.  800

Vat a/c. (short)cr.           800

Vat payable dr. 3700

 Bank a/c. cr.                    3700.

now i can realize that you cant make proper entries even :)

for vat account make just one entry of Value added tax (credit) in Balance sheet "assets"

for putchase 

Purchase account ......Dr ..................1000

Value Added Tax(cr)....Dr ................... ...40

Suppliers a/c / Bank Account Cr. .................1040

..................................................................1040/1040

for sales 

Customer / Bank account Dr ............ 520

Sales account ................................................500

Value Added Tax (cr)........................................20

...................................................................520/520

Now come to Vat Ledger (cr)

By Purchase ...........................40

to Sales ..........................................20

Refund Claimed ...........................20

.....................................................40/40

Generate another Ledger "VAT paid" in indirect expenses

cash payment towards Liability of Vat on sales / against order  will get posted here only. 

your entry of short paid will refleted  in vat paid .

NB: The above entries are made NETT basis , excluding taxes and duties on purchase and sales, as per AS-2 

ok thanks