Sales Tax Refund

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..... Sales Tax Refund
Query (Issue) Started By: - Mathurthi RamKumar Dated:- 23-5-2015 Last Reply Date:- 15-12-2015 Accounting - Auditing
Got 2 Replies
Companies Law
Greeting to all, We recei .....

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..... ved sales tax refund from state government paid in 3 years back.(actually it paid for machinery purchase) I want to know hw to accounting for above. Any Income Tax rules to be noted for this? Kindly g .....

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..... uide me. RegardsM.RamKumar Reply By MARIAPPAN GOVINDARAJAN: The Reply: In my opinion you might have booked the sales tax paid as expenditure and when it gets refunded it would be treated as income. .....

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..... Reply By Ganeshan Kalyani: The Reply: When sales tax was paid you would have accounted as - 1) Vat paid a/c (P&L) Dr.to Bank a/c 2) to transfer this amount to Current asset - other taxes recoverable .....

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..... a/c Dr. To Vat paid a/c. 3) when you have received the refund - Bank a/c Dr. To other taxes recoverable a/c. Like you may drawdraw your conclusion how to account the refund.
Discussion Forum - Kno .....

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..... wledge Sharing .....

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