Accounting Aspect of Value Added Tax in Bangladesh

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Accounting Aspect of Value Added Tax in Bangladesh

Term Paper
On
Accounting Aspect of Value Added Tax in Bangladesh

Prepared By :
Name : Md. Mahmudul Hassan
Roll :
University Roll :
Class Roll:

Supervisor’s Name and Designation

Mr. Md Nurajjaman
Assistant professor
Department of Accounting
Govt. B.M College, Barisal

Date of Submission :

OBJECTIVES OF THE STUDY

LEARNING OBJECTIVES
After studying you shall be able to understand :
➢ The concept of Value added tax
➢ Characteristics of Vat
➢ Advantages and disadvantages of vat
➢ Contribution of Vat in Bangladesh
➢ some Important features of Vat in Bangladesh
➢ Charge of Value added Tax
➢ Who will pay the Vat ?
➢ Exemption from Vat
➢ Registration of Vat
➢ Offence and Penalties
➢ Accounting treatment at vat
➢ Vat authorities

Accounting Treatment of VAT
1. Journal Entries for VAT Account :
1. When assets purchase with VAT
That Assets A/CDr***
Cash/Bank/A/PCr***
2. When goods/Raw Materials Purchase with VAT
Purchase/Raw Materials A/CDr***
Input VAT A/CDr**
Cash/Bank/A/PA/CCr***
3. When Goods are return to Suppliers which were purchased with VAT
A/P/CashDr***
Purchase ReturnCr***
Input VATCr***
4. When goods are Sold with VAT
Cash/A/RDr***
SalesCr ***
Output VAT A/C Cr ***
5. When goods are return from suppliers which were sold with VAT
Sales return A/CDr***
Out put VAT A/CDr***
A/RCr***
6. For balance of Input VAT
VAT Current A/C Dr***
Input VATCr***
7. For balance of output VAT
Output VAT Dr***
VAT current A/C Cr***
8. When return Submit or deposit into bank after adjusting the input VAT & Out put VAT
VAT current A/CDr***
Bank/Cash A/CCs**
2. VAT Computation :
2.1 : When goods are Imported :
|Particulars |TK |TK | |C & F Value | |*** | |Add: charges for Assessable Value : | | | |Insurance |*** | | |Landing charge |*** | | |Clearing Charge |*** | | |Assessable Value | |*** | |Add : Import duty |*** | | |Supplementary duty |*** | | |Other duty |*** | | |Basic Value for VAT (Input Value) | |*** | |Add: Input VAT 15% of Input Value | |*** | |Cost of Goods Sold (CoGS) | |*** | |Add: All other expenses by seller | |*** | |: Profit |...
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