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
- 4754 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 |
Furniture is Destroyed in Fire ?? Where it will effect in Balance sheet ??
If we can write Credit to cr. so why we can`t write Debit to Dt. or De. why we write it Dr.?
we have a bill for billing software modification, i want to know that which head post this entry in tally & also tds applicable or not.
why u maintain accounts in business
what is ledger
why companies put ltd and pvt ltd,what is the difference?
What is the Difference Between Simple Chq. and At Par Chq. ?
What is accounting chart of accounts?
What is an interlocking accounting system?
What is the general classification of accounts that usually ledger account involve?
how can i put entries for stock replacement in zero values
1 Answers IT Consulting Services,
How do you maintain accounting accuracy?
Audit 
