Cst on purchase
This query is : Resolved
25 July 2013
respected sir,
cst on purchase should be added in basic purchase price or it should be charged separetely
cst on purchase should be added in basic purchase price or it should be charged separetely
CMA Ramesh Krishnan
(Expert)
25 July 2013
CST on purchase need to add as purchase cost and charge the VAT
CA SUMiT PATWARi
(Expert)
26 July 2013
Cst is a cost incurred to bring the material to its current location and condition and needs to be included in price of materials.
You may account for cst on purchases in the price of materials immediately on receipts. This would be a more prudent practise.
Alternatively it may be posted separately and later included in cost of materials at the time of material valuation.
You may account for cst on purchases in the price of materials immediately on receipts. This would be a more prudent practise.
Alternatively it may be posted separately and later included in cost of materials at the time of material valuation.
04 September 2013
FIRST PROCEDURE
You can open a CST account separately and Purchase account separately and claim CST in P & L A/c If you do not have any CST Sales
SECOND PROCEDURE
Debit Purchases with CST Value and charge VAT as suggested by the expert Mr. Ramesh Krishan
Here also you should not have the CST Sales
If you have CST sales then you open a CST A/c with Dr. & Cr. and the balance to be claimed if debit then in P & L A/c and if Cr. is more than in B/S liability side and as and when paid the account will be squared up
You can open a CST account separately and Purchase account separately and claim CST in P & L A/c If you do not have any CST Sales
SECOND PROCEDURE
Debit Purchases with CST Value and charge VAT as suggested by the expert Mr. Ramesh Krishan
Here also you should not have the CST Sales
If you have CST sales then you open a CST A/c with Dr. & Cr. and the balance to be claimed if debit then in P & L A/c and if Cr. is more than in B/S liability side and as and when paid the account will be squared up
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