GOKUL (Accountant) (50 Points)
12 March 2017
Mahesh Babu
(CA Final)
(618 Points)
Replied 12 March 2017
Mr.Gokul,
The exemption of Goods varies from state to state due to respective state VAT laws, in your case they have charges CST @ 1.5% on both exemted & taxable goods, so you can book total amount as Purchaes & charge it to P&L a/c as we can't claim the CST as input tax credit.
So, total amout to be charged as expenses in your books.
mohammad
(article assistant)
(123 Points)
Replied 12 March 2017
GOKUL
(Accountant)
(50 Points)
Replied 12 March 2017
Can i post the exempted goods in exempted purchase and taxable goods in taxable purchase?
CAclubindia
