On 26-4-2011, M/s National Traders received a sales order from Excel Traders, Mumbai for 4 photo copying machines priced at ` 43,000 each. M/s National Traders raised a sales invoice for the said item vide invoice number 012, despatched 2 nos and requested the branch office – National Enterprises to despatch remaining quantity. CST @ 2% was charged while invoicing against C Form. The sale value and CST amount of goods despatched by branch office was reversed on 27-4-2011.



The above is a question given by Tally Solutions in its guidance book and following are the entries they gave:



Entry 1 (Interstate Sale Entry)

Excel Traders 175440

To Interstate Sales 2% 172000

To CST 2% - Interstate Sales 3440



Entry 2 (Reversal of Interstate Sales to Sales Outside the State)

Interstate Sales 2% 86000

To Interstate Sales - Tax Free 86000



Entry 3 (Transferring value of CST to Branch)

CST 2% Interstate Sales 1720

To National Enterprises 1720



My questions are following

I am clear as to the first entry.

But what are they doing in remaining two !!



Thanks

Shivani

shivaniadream @ gmail.com

Dear Experts

Please consider following situations.

1.Interstate purchase of goods AGAINST Form C Rs. 10000. CST rate applicable obviously is 2%. Now we transfer all these goods to our branch in OTHER state.




2.Interstate purchase of goods AGAINST Form C Rs. 10000. CST rate applicable obviously is 2%. Now we transfer all these goods to our branch in OUR state.




3.Interstate purchase of goods WITHOUT Form C Rs. 10000. CST rate applicable will be VAT rate in the state of seller say 12.5%. Now we transfer all these goods to our branch in OTHER state.




4.Interstate purchase of goods WITHOUT Form C Rs. 10000. CST rate applicable will be VAT rate in the state of seller say 12.5%. Now we transfer all these goods to our branch in OUR state.




5.Local purchase of goods Rs. 10000. VAT rate applicable in our state is 12.5%. Now we transfer all these goods to our branch in OUR state.




6.Local purchase of goods Rs. 10000. VAT rate applicable in our state is 12.5%. Now we transfer all these goods to our branch in OTHER state.



I know what will be the entries at the time of purchase in all above 6 cases.

What I need to know is what will be the entries at the time of branch transfer in all above cases and how will we deal with the CST/VAT (paid on these goods at the time of purchase) during branch transfer.




I belong to Punjab and the relevant Act is Punjab Value Added Tax Act, 2005.



Thanks in advance.





Shivani

shivaniadream @ gmail.com

I want to start selling a product in Kerala State and for that I want to open about 30 dealers in different place of kerala and also godown in Kerala for which goods would be transferred from Delhi State.
Should I get all dealers registered under Kvat act? or the registration as only one dealer for all dealer would be Okay.

what is the last date of vat return filling of rajasthan of 3rd & 4th quarter.

SIR,
I WANT TO KNOW ABOUT ASSESSMENT YEAR OF THE COMPANY WHICH ARE LIABLE TO PURCHASE N SALE IN LOCAL AUTHORITY UNDER DVAT ACT ONLY LOCAL SALE N PURCHASE ARE THERE THEN PLESE TELL ME THE ASSESSMENT OF THE YEAR IS COMPULSORY OR NOT..????

hi, i have a query regarding KVAT registraion. 1. my client is having business of Glass framing activity and he has registered in 1976. Now is at the age of 75+, and he is unable to look after the same. 2. my client is having a son and he wants to register under vat for the same place and to do the same business and he wants to purchase all the closing stock lying in his fathers business. and subsequently his father will close the business. can anybody suggest what will be the KVAT impact. is it possible to registet under kvat in the same premises or only his father has to close the business and then only son will be eligible for vat registration in the same place.

During filing nil return under rajasthan vat but when i filled and tried to generate acknowledgement it was replied that you have to make payment of late fees of late filing but there is no link of payment.tell me how to make payment and generate acknowledge.

I have a client (A) in Delhi who has a customer (B) in Haryana. B has a Factory in Haryana which requires Hydrogen Gas for its manufacturing activities.

A shall invest and manufacture the Plant in Delhi or Noida and install the same at B's Factory in Haryana. The Plant will generate Hydrogen Gas. For the production of Hydrogen Gas, A will supply Ammonia which is a Raw material to produce Hydrogen. B shall use the Hydrogen for its manufacturing activities.

A's technical team shall maintain and operate the Plant at B's Factory.

The Ownership of the Plant will be with A, however B will have the right to use the Gas.

A will charge B Certain Amount as Lease rental calculated on the basis of the amount of gas used by B which will be recorded by a meter reading in cubic meters (say 100 cubic meters)

I want to know the VAT and Service Tax Implications on the above transaction.

I want convert the billing in computer from manual .what is possibility in this case when i start after month end, quarter end or only financial year end.

Please confirm me as early as possible.

Pls Help Any one...Pls give bries note about c -form.pls