Follow Our FB Page << CircleMedia.in >> for Daily Laughter. We Post Funny, Viral, Comedy Videos, Memes, Vines...


whether VAT is an asset or liabilities?

Answers were Sorted based on User's Feedback



whether VAT is an asset or liabilities?..

Answer / niranjan nayak

It is both an asset and liability.When it is collected from
purchaser it is a lisbility for seller and an asset for
purchaser.

Is This Answer Correct ?    115 Yes 19 No

whether VAT is an asset or liabilities?..

Answer / dinesh

If VAT is receivable (ie on purchase bill) it is asset.
if Vat is payable (ie on sales bill) it is liability

Is This Answer Correct ?    83 Yes 16 No

whether VAT is an asset or liabilities?..

Answer / h.r. sreepada bhagi

VAT charged in the Tax Invoice is a liability to the Seller
as the amount should be remitted to the Government. It's an
Asset to the buyer,as he's entitled for setting it off
against VAT liability on his sales. At the end of the month
VAT on Sales and Purchases can be adjusted against each
other and if VAT on Purchase is more than VAT on sales
during that month, it will appear as 'Input VAT Credit'
under 'Current Assets, Loans & Advances' & if VAT on Sales
is more than VAT on Purchases, it will appear as 'VAT
Payable' under Current Liabilities & Provisions in the
Balance Sheet.

Is This Answer Correct ?    53 Yes 1 No

whether VAT is an asset or liabilities?..

Answer / sham

Yes, It is effect on both sides, Assets and Liabilities, If
VAT pay against Purchase it will effect on Assets and
If Collect against Sales it will effect on Liabilities.

Is This Answer Correct ?    30 Yes 1 No

whether VAT is an asset or liabilities?..

Answer / angshujit das

Yes it is a assats for a purchaser because, it is like a
payment of liability in advance, and liability for a seller.

Is This Answer Correct ?    29 Yes 3 No

whether VAT is an asset or liabilities?..

Answer / tax beginner

VAT (Value Added Tax) applicable on Company’s Sales is its
liability since Company have to remit the same to
Government as Taxes on Monthly/Quarterly/Yearly Basis
(Return cum payment). A company can always pass the Burden
of this tax onto its customer by way of including it in its
Net Sales price. While making payment to Government a
company can avail setoff (reduce from VAT liability) for
the VAT paid by it for the purchases which go in to
production and ultimately gets converted into saleable
product. Thus the Eligible Input Tax Credit (Setoff) is an
Asset to a Company and gets reduced from its VAT Liability
to the Government. In Balance sheet it can be shown in
Current Asset and gets reduced/knocked off/reversed as and
when VAT Liability is discharged by making necessary
entries in Books of Accounts.

Is This Answer Correct ?    19 Yes 1 No

whether VAT is an asset or liabilities?..

Answer / aftab shaikh

Yes, It is effect on both sides, Assets and Liabilities, If
VAT pay against Purchase it will effect on Liabilities and
If Collect against Sales it will effect on Assets.

Is This Answer Correct ?    32 Yes 20 No

whether VAT is an asset or liabilities?..

Answer / kiran

y this is effected on both sides,
v purchase against tax invoice then vat refundable so that
is assets.
and v sale against tax invocie then pay tax so liabilities.

Is This Answer Correct ?    10 Yes 1 No

whether VAT is an asset or liabilities?..

Answer / thabo modukanele

It depends, when you purchase goods you pay vat input and
when you sell goods you charge vat output which does not
really belong to you as the seller therefore is a liability
which is payable to SARS.As for vat input is an assets in a
case that you are still going to claim it from SARS.

Is This Answer Correct ?    7 Yes 2 No

whether VAT is an asset or liabilities?..

Answer / sangita

VAT is an both site effected ( Asset and Liability ). when
you debtors that time VAT is liability and when you creditor
that time VAT is Asset .

Is This Answer Correct ?    9 Yes 7 No

Post New Answer



More Audit Interview Questions

how will u check the account receivables and cash balances while doing audit

3 Answers   Price Waterhouse Coopers,


an auditor gave his report and later he found an material misstatement in the financial statements regarding the period for which he gave report.now he is willing to change his opinion.is it possible.

2 Answers  


What is a voucher????

8 Answers  


secretarial audit

6 Answers  


Expand---------RDES

1 Answers  






i want question papers audit staff selection examination

0 Answers  


How can manage (Recover and Reduce)NPA in Banking Sector?

2 Answers  


what should we do in case of a Partnership wen the Partners capital account has debit balance???

1 Answers  


First things unit price is Rs 1, second things unit price Rs 0.75 and third things unit price is Rs 0.25 condition 100 things (include 3 things unit price) is purchase in Rs 100 how you will get?

1 Answers  


What are non-cash impairment charges?

1 Answers  


Whats are the importance of evaluating an internal audit department?

0 Answers  


Expand---------BRP

2 Answers  






Categories