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vat accounting

geoffrey moothedan (Accountant) (25 Points)

11 November 2009

Can anybody explain the accounting entries in VAT for trading 2 different type items - one is 12.5% and other is 4 % taxable. Whether the input & out put tax entries needs seperate folios for 4% & 12.5%? Please explain

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3 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 11 November 2009

for output two ledger codes are necessary and not for input

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subramanya (Professional) (907 Points)
Replied 16 November 2009

Originally posted by :geoffrey moothedan
"	Hi Can anybody explain the accounting entries in VAT for trading 2 different type items - one is 12.5% and other is 4 % taxable. Whether the input & out put tax entries needs seperate folios for 4% & 12.5%? Please explain	"

I think NO, Total Input VAT(whether it may be 4% or 12.5%) can be set off with available Output vat (both 4% and 12.5%)

(Guest)

THE CORRECT ACCOUNTING IS OPEN SEPARATE LEDGER INPUT 4% AND 12.5% AND OUTPUT 4% AND 12.5% AND THEN AT THE END OF QUARTER/ MONTH WHEN SALES TAX DUE DR OUTPUT ENTRIES AND CREDIT INPUT ENTRIES AND BALANCE IS UR TAX PAYABLE