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
CAclubindia
