Page 241 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes

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.

Notes 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 are taxable purchase and sales entries as illustrated below:
Purchase Entry: 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:

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