My question is why we debit the input tax, and cradit the
output tax. wt is the logic and wt is the principal behind
it
adil khan( CA STUDENT)
- 2 Answers
- 4751 Views
- Asia Transport, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / abhisek
because for input tax we have already paid and for which we
will be getting credit so it is our asset thats why we debit
it and vise versa....
| Is This Answer Correct ? | 5 Yes | 3 No |
Answer / nitin
when u r selling sumthing , u you are liable to pay tax to
the govt(vat,cenvat)...this tax being a liability , you
credit it...
but you also pay this tax when you purchase somthing as the
seller will add his own tax liability to the cost of the
product...tax is levied on you indirectly...since you have
now already paid the tax it becomes an asset...
asset-liability = tax payable/refund
| Is This Answer Correct ? | 2 Yes | 1 No |
Tell me,as per companies which section P&L Account and balance sheet will be prepared
The main financial accounting statements?
What is the difference between Discount & consession?
What are the disadvantages of manual accounting?
Do you know offset accounting?
WHAT IS TAX ? WHY SHOULD PAY TAX?WHAT IS THE NEED FOR PAYING TAX?
what is the difference between accrued and due
What are the accounting entries for branch accounts?
What is a contra entry
hi friends... what it is the journal entry to be passed when the loan sanctioned by one bank and same the cheque was deposited in another bank on same day.? thanks & regards
What is journal entry for salary paid less deductions (e.g. fines for breaking a company's property)?
bills of exchange
Audit 
