Vat & cst

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Amar kumar karna (Querist)
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07 May 2014 1) How to account far CST 2% purchases in tally. Ex: If a cst 2% purchase made from Ram & co (basic 15000, tax amount 300, total invoice value 15300/-) what is the purchase entry in tally.
I entry in tally :
Dr Purchase A/c 15,000/-
Dr CST 2% A/c 300/-
Cr Debit RAM & Co A/c 15,300/-
2) When I sold above to Hari Shankar Kr material 18900.00 ( Sales Amount : Rs 18000.00 & Vat @5%= 900)
Dr Hari Shankar A/c Dr 18900.00
CR Sales A/c 18000.00
Cr VAT 900.00

My question is above 2 entry is correct or not & how to adjust my Vat to cst tax.

Sandeep Dharar

Sandeep Dharar (Expert)
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07 May 2014 CST should b clubbed with the goods value & the entry should b:-

Purchases Dr 15300
To Ram & Co 15300

U cant claim input CST separately, it will b added to the goods and the calculation will b as follows:-

Pur Amt. 2000 CST 40
Pur Amt 5000 VAt 20

Pur Cst - 2040
Pur VAT - 5000 20(ITC)
Total 7040
Sale 1000 70(output VAT)

so VAT payable will b 70-20= 50/-

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Amar kumar karna

Amar kumar karna (Querist)
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07 May 2014 little confusion

if above entry is

Purchase Dr 15300
to Ram & Com Cr 15300

than how to calculate which amount i claim or to adjust vat payable ?

Sandeep Dharar

Sandeep Dharar (Expert)
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07 May 2014 Amar try to understand, that u can take ITC on VAT only n not of CST. If u see the above example carefully u can understand that CST amount is included in the bill n it will also b adjusted like that.

VAT is eligible for ITC hence it will not b added with the cost n CST is not liable for ITC hence added with cost.

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