The VAT Analysis section is introduced in the VAT Computation report to provide information on VAT Payable, amount paid and refund amount for the current period along with the details of input tax credit and VAT liability carried forward to the next return period.
Note: To illustrate the VAT Analysis, the entries of purchases and sales are recorded in the month of December in a newly created company. Hence the Input VAT or output VAT of previous months are not carried forward from previous months.
Assume that there is are taxable purchase and sales entries as illustrated below:
Record a purchase entry by selecting purchase & input VAT ledgers with VAT/Tax class - Purchases @ 5% and Input VAT @ 5% respectively. The purchase entry appears as shown:
Record a sales entry by selecting sales & output VAT ledgers with VAT/Tax class - Sales @ 5% and Output VAT @ 5% respectively. The sales entry appears as shown:
VAT Computation
In the VAT Computation screen click on F12: Configure and set Show VAT Analysis to Yes.
Press Alt+F1 to view the report in Detailed mode. The VAT Computation with VAT Analysis displays as shown:
For the above purchase and sales entries, record a payment entry for full payment of VAT dues using the Auto-fill option. In the single entry mode of Payment voucher, select the bank ledger in Accounts field and press S: Stat Payment button (Alt+S). Set the options as shown in Statutory Details screen.
The Payment entry displays as shown:
Set Provide Details field to Yes and enter the VAT Payment Details.
After accepting VAT Payment Details, the Bank Allocations screen appears. The Bank Allocations for field displays the bank ledger selected in Accounts field of payment voucher. Under Payment Favouring for, enter the name in whose favour the payment is being made. Select the required Transactions Type. The payable amount is captured in Amount column. The cheque number entered in VAT Payment Details screen needs to be entered in Instrument No. field, the Instrument Date is captured from Voucher Date. If Cheque is selected as the Transaction Type the Cross Instrument Using field will be displayed as A/c Payee. On selecting any other Transaction Type, the Cross Instrument using field will not be displayed.
Accept the payment entry.
Go to VAT Computation and view the VAT Analysis. Separate sections are provided for VAT Liability and VAT Payments. Under VAT Liability, the VAT Payable amount and the Current Period VAT Payable amount will be displayed. Under VAT Payment, the amount Paid through Challan/cheque will be shown. The VAT Payable will not show any amount if the payment of VAT dues is done fully.
The Payable and paid amount displays as shown:
Go to the payment entry and mark it optional as the same purchase and sales entries will be used in the scenarios explained in the partial and excess payment examples.
Assume that an advance payment was done before computation of actual dues and the paid value was in excess of actual payable at the end of the tax period.
In the single entry mode of Payment voucher, select the bank ledger in Accounts field and press S: Stat Payment button (Alt+S). In the Statutory Payment sub-screen set the options - Type of Duty/Tax as VAT and Auto Fill Statutory Payment to No. In the Payment entry select the VAT Payable ledger and enter the amount in excess of VAT dues.
Set Provide Details field to Yes and enter the VAT Payment Details. Accept the payment entry.
Go to VAT Computation and view the VAT Analysis. Under VAT Liability, the VAT Payable amount and the Current Period VAT Payable amount will be displayed. Under VAT Payment, the amount Paid through Challan/cheque will be shown. The excess amount paid will be shown as VAT Refundable/Carried Forward.
The payable and paid amount for the current period displays as shown:
Change the period of VAT Computation to the subsequent tax period. The excess amount paid for the current period will be carried forward to the subsequent period as VAT Refundable/Carried Forward.
Go to the payment entry and mark it optional as the same purchase and sales entries will be used in the next example.
Assume that the payment is to be made towards interest. In the journal voucher, select the voucher class created for recording VAT adjustment entries. Select Interest Payable in the Used for field. Debit the Interest expenses ledger (grouped under Indirect Expenses) and credit the interest payable ledger (grouped under Current Liability).
In the single entry mode of Payment voucher, select the bank ledger in Accounts field and press S: Stat Payment button (Alt+S). Set the options - Type of Duty/Tax as VAT and Auto Fill Statutory Payment to Yes/No as per requirement. On setting Auto Fill Statutory payment and Adjust Input VAT for Payment to Yes and entering the period, the value will be automated. If set to No, the payable amount needs to be entered manually.
In Payment entry, select the interest payable ledger after VAT ledgers and set the Type of Payment as Interest.
Enter the ledger balance in the amount field.
Accept the payment entry.
Go to VAT Computation and view the VAT Analysis. Under VAT Liability, the VAT Payable amount and the Current Period VAT Payable amount will be displayed. Under VAT Payment, the amount Paid through Challan/cheque will be shown with the breakup of VAT and interest amount paid.
Note: The break-up of VAT and interest amount is displayed only in case where Interest is selected as the Type of Payment in the Payment Voucher. The Payment Type sub-screen is provided in payment voucher recorded using Stat Payment button as per the State specific statutory requirements.
The payable and paid amount for the current period displays as shown:
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