Accounting for e-1 sale (sale in transit)
This query is : Resolved
Prince Agarwal
(Querist)
05 March 2013
Suppose, I am a dealer in Delhi, I ordered certain goods from Kolkata, which I want to get delivered to my customer in Mumbai.How will I account for such purchase and sale in transit where CST is exempt with my share of profit?[Goods purchased from Kolkata Rs 34382(Rs 30000+12.36% Excise+2% CST) and now I want to Bill my customer Rs 34382 + my share of profit ?
GN Patankar
(Expert)
06 March 2013
Dear Mr P agarawal ,
Accounting treatment will be as under
Trading transit pur Dr 34382/-
To Party account Rs 34382/-, since you can not take benefit of CENVAT under E-1 transation, & same u can reimburse from your customer with CST amount in your Commercial Invoice .
If it is exempt under CST than you can not issue C form to Kolkata dealer & BBy dealer will not issue C form to U .You have to purchase & sell in full rate of tax to Customer
Customer acct Dr 34882/- + profit
To, Trading Transit sale accout Cr ---
Accounting treatment will be as under
Trading transit pur Dr 34382/-
To Party account Rs 34382/-, since you can not take benefit of CENVAT under E-1 transation, & same u can reimburse from your customer with CST amount in your Commercial Invoice .
If it is exempt under CST than you can not issue C form to Kolkata dealer & BBy dealer will not issue C form to U .You have to purchase & sell in full rate of tax to Customer
Customer acct Dr 34882/- + profit
To, Trading Transit sale accout Cr ---
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