Cst purchase entry in tally

Accounting Entries 16337 views 7 replies

Srinivas Kandukuri

FIN & ACCTS

30 Points Posted on 16 May 2013

Dear all,

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.

CASE 1: If I take Input CST 2% ledger under DUTIES & TAXES under CURRENT LIABILITIES, where & how the effect shows in P&L a/c & balance sheet, Is input cst 2% is a liability (or) expenses. it will effect in P&L a/c & Balance sheet. If we take input cst 2% under duties & taxes it will automatically liability will be increased. but it cannot be paid to govt. and also we cannot claim as input in cst returns. pls clarify

Purchase A/c 15,000/- debit

CST 2% A/c 300/- Debit

RAM & Co A/c 15,300/- Credit

CASE 2: If i take total purchase invoice value 15300/- to purchase account (including tax) only with out creating the input cst 2% ledger. what is the effect in P&L a/c & balance sheet.

Purchase A/c 15,300/- Debit

RAM & Co A/c 15,300/- Credit

Pls let us clarify the correct procedure to account far cst 2% purcahses in tally & which procedure is correct either CASE1 or CASE 2. Pls clarify.

Thanks & Regards,

SRINIVAS KANDUKURI

Replies (7)

praveen kumar devarapalli

Managing Director

361 Points Posted on 17 May 2013

Dear Srinivas,

As per APVAT Act, no one can claim CST Paid on a.c of purchase of Goods from out of station. In this cases CST Amount also has to be addedd in the Purchases A/c or Asset A/c. In your case the amount to be added to Car A/c.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9615 Points Posted on 21 May 2013

Case I is correct entry.

Amol

Sugar sale Accountant

22 Points Posted on 03 February 2015

Dear Sir, I want to know why CST is not under Current Liabilities.

Amol

Sugar sale Accountant

22 Points Posted on 03 February 2015

Dear Sir, I want to know why CST is not under Current Liabilities.

chandra sekar

Manager-Accounts

390 Points Posted on 06 January 2016

This is one of the most complicated account, and most of the accounts ppl, using this CST tax as duties and taxes, which is totally wrong as per concept of accounting. This CST is not at all a liability on part of a purchaser and he is not going to pay the same to any stautory body. So, i strongly emphasise, the CST part, the group should be purchases and not duties & taxes. Even in filing of sales tax returns, yu can show this purchases as a total bill value , and issue C Forms, and no assessing officer can deny the said C form, in accepting. In accounting, if at all, if you want to know the CST on purchases , yu debit CST amount separately, while accounting purchases. By month end, you prepare a journal entry, by crediting the CST amount and debiting the Purchases A/c.