Dvat tally entry

Purchase A/c Dr.                2,95,530

CST Expense A/c     Dr.             2,955
Insurance exepnse A/c Dr.          148 

                                To Vendor A/c               2,98,633

What is that Cess 1/8%

IF the cess is not refundable then entry is

Purchases A/c Dr  298633

  To Creditor A/c           298633

@ V V Prasad... actually i also dnt have any ideaabout thet cess 1/8%. When i asked with client he said that he has to pay in and he also dnt know why.

@ sumit... That CST is non refundable, in which we will put that CST? expense? Liability? Actually this is the thing which i got confused into? How to treat THat CST And 1/8% Cess

MR ARUN

PLEASE CLEAR C.S.T.  @ 1% ?????????????

ok

If he is claiming any credit of that cess

like VAT credit like that

If no credit then entry will be for full amount since the cess not refundable

CST is to be taken as cost since it is also not refundable

Insurance u may take it as cost or shown as separately

ok

Mr RAJ, 

CST @ 1% has be on the total amount of 295530

The good client purchase was a 1% Taxable good and CST is TAx or 2% whichever is lower so 1% has been levied on it

ok

For insurance u can take a separate A/c or include in the cost

no problem to both

ok

 interstate Purchase A/c Dr :       298633

         To vendors A/c                                             298633

(where the taxes paid not claimable,)

Purchase A/c dr.

cst/vat/cess a/c dr. (if credit can be taken,it will be depend on dvat rules )

To vendor  a/c

Insurance u can consider it as a indirect expenses.