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vat

sachin alwadhi (cost accountant) (1211 Points)

08 April 2008

hello,

pls send me journal entries regarding vat in details.

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4 Replies

Thirumalai Nagarajan (Accounts Officer) (378 Points)
Replied 09 April 2008

hai,

1) Sundry Debotrs A/c-----Dr

To Sales A/c

To Vat A/c

(Being this entry made at the time of sale simply say vat collected entry)

2) Purchase A/c-----Dr

InputVAT A/c-------Dr

To Creditors A/c

(Being this entry made at the time of Purchase ,Simply say input entry)

3) Vat A/c-----Dr

To InputVAT A/c

(This is the payable entry to Bank (ie., (VAT-INPUTVAT=VAT).

that's all.

have a nice day

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Anil Malpani (Manager- Accounts) (24 Points)
Replied 09 April 2008

is there any different rate of vat in maharastra on electronic goods like t.v,music systems etc.

Krithika (Chartered Accountant) (208 Points)
Replied 21 April 2008

Please give clarification on this... Is Vat leviable both on purchase and on sale of Gold Jewellery(when done by the consumers)?....if so at what rate?..

What are the provisions on the same?

Milind (Service) (37 Points)
Replied 25 April 2008

Under the VAT, the tax rates have been simplified. There are only two main rates of VAT: (1)4% for items consisting mainly of raw materials used in the manufacturing process, IT products and some goods of common consumption (2)12.5% for all goods unless they are listed under the other rates Foodgrains including pulses, milk, vegetables and books are not subject to VAT. In addition, there are two other rates for specific items: (1)1% for gold, silver, other precious metals, precious and semi precious stones and their jewellery (2)20% for liquor The only exception to these rates is for the sale of motor spirits, which have special tax rates based on the existing Bombay Sales of Motor Spirit Taxation Act, 1958, subject to a floor rate of 20%.

Vat is charged during sale of goods by preparing Tax Invoice.