Interstate purchase of declared goods

This query is : Resolved

Shivani (Querist)
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09 June 2014 Dear Experts

We know that declared goods or goods of special importance cant be taxed at more than VAT 5%.

I need to know that will be the entry in case we buy these goods interstate?

Will there be an involvement of C Form.

Will CST rate be 2%?

Please advise.

Thanks

Shivani

shivaniadream @ gmail.com

Vishnu Saboo

Vishnu Saboo (Expert)
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10 June 2014 if material is purchased against form C, then rate shall be 2%, else 5%.

Entry - Inventory acc Dr (Material value + Tax value )
Cenvat acc Dr
To party

Shivani

Shivani (Querist)
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11 June 2014 Dear Arun Sir

Why you have taken Cenvat Account into consideration?

Ours is a trading concern.

I feel the entry should be

Interstate Purchases 2% (including cost and CST)
To Creditor

Please suggest

Vishnu Saboo

Vishnu Saboo (Expert)
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12 June 2014 Dear Shivani ji, u didnt mention it that is it abt a trading concern or what, so i told you possible entry, if cenvat is not there than ED (if any is charged) will be added in inventory/purchases account.
yes ur suggested entry is correct.

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