Accounting Journal Entries for Taxation - Excise,

Service Tax, Vat, TDS

I Value Added Tax (VAT)
The organizations engaged in Sale and purchase transactions have to pay Vat liability. When
they purchase material Vat is paid on purchases and hen they sell material Vat is collected
on material.
Vat paid on purchase o! material"Input
Vat paid on Sale o! #aterial"$utput
$utput amount is ad%usted ith the input and the balance is paid to the department. &ntries
to be made are'"
At the time o! (urchase o! #aterial
(urchase )r****.
Vat Input )r*****
To +reditors********
At the time o! Sale o! #aterial
)ebtors )r******.
To Sales**********.
To Vat $utput*******..
At the time o! Ad%ustment
Vat $utput )r******..
To Vat Input***********..
To Vat (ayable (I! $utput,Input)************
At the time o! (ayment
Vat (ayable )r**********..
To +ash-ban.
II Service Tax
When services are received'"
&xpenses )r*********
Service tax Input )r******
To (arty
When services are provided
)ebtors )r********
To /evenue*********
To Service tax $utput*****
At the time o! Ad%ustment
Service tax $utput )r*****.
To Service Tax Input********.
To Service tax (ayable*********.
At the time o! (ayment
Service tax (ayable )r*******.
To +ash-ban.**************.
III &xcise )uty
At the time o! (urchase
(urchase )r*****..
+entral &xcise Input )r***..
&ducation +ess Input )r******.
Secondary and 0igher &ducation +ess Input )r.
To +reditors
At the time o! Sale
)ebtors )r*****.
#anu!acturing )uty (1asic2&ducation +ess2Secondary 3 higher education cess) )r.
To +entral &xcise $utput *******..
To &ducation +ess $utput*******..
To Secondary 3 higher education cess $utput*****
To Sales (Including excise duty amount)*******************..
IV Tax )educted At Source
At the time o! deducting T)S
&xpenses )r*****
To T)S (ayable*******.
To (arty************
At the time o! deposit o! amount o! T)S
T)S (ayable )r*********
To +ash-1an.***************
At the time o! boo.ing o! income
(arty )r********.
T)S deducted*********
To /evenue receipts************.
At the time o! receipt o! Income
1an.-+ash )r*********..
To (arty**************..