Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Rate of VAT/CST in Interstate sale against Form-F

Save Share

This query is : Resolved

rajnish jain (Querist)

19 August 2008 In case of Interstate Sale, which will be applicable out of two:-VAT or CST and at what rate. whether this sale will be taken as consignee sale and what will be accounting entry for the same in the books of accounts.

Satish K Sekhar.ACCA

Satish K Sekhar.ACCA (Expert)

19 August 2008 Interstate sales attract CST at 2% flat for all goods against C form. /without C form the local state rates are applicable depnding upon the schedule of rates under which the subject goods falls.

Treating a sale consignement sale is not at the will of entities, but it is necessary to have proper consignment agreement between parties and consignment sale should be only between a manufacturer and the agent apponted by the said manufacturer where interstate sale is considered as interstate transfer of goods for sale. Form F is issued by the agent to the manufacturer for this. Accounting entry for consignment sale is normal purchase entry.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now