Journal entries

PARTY AC------------DR.

           TO SALE

              TO CST

(BEING CST SALE MADE)

CST AC---------------------------------------------DR,

                         TO BANK

(BEING PAYMENT OF CST)

CST AC--------------------DR.

              TO VAT AC

(BEING CST ADJUSTED AGAINST VAT)

RECTIFY ME IF I AM WRONG

1. CST Sale 

  Party A/c ...............Dr

    To Sale A/c

   To CST PAyable A/c

2. CST PAyment

   CST PAyable A/c ............Dr

   To Bank A/c

3. VAt amount can't adjust for CST Sale. But VAT Input VAT amount can adjust for local vat payment eventhough the goods are sold out of state.

    VAT Payable A/c  .................Dr

             To Input VAt A/c

CST Payment can be adjusted against Local VAT Payable 

Hi All

Mr Aditya is correct.  Mr. Pradeep Kuamr & Mr. Shivaram is wrong.

Regards

TRILOCHAN

Mr Trilochan

Can You  tell where I am Wrong I also stated same thing as what Aditya Said

CST Payable can be adjusted against  Local VAT 

mr. sivaram, cst payment can be adjusted against vat receivable, not vat payable

Thanks for correcting me

Agree with Aditya

Originally posted by : aditya(ca learner)
	PARTY AC------------DR.            TO SALE               TO CST (BEING CST SALE MADE) CST AC---------------------------------------------DR,                          TO BANK (BEING PAYMENT OF CST) CST AC--------------------DR.               TO VAT AC (BEING CST ADJUSTED AGAINST VAT) RECTIFY ME IF I AM WRONG

Exact Entry.........

Mr Shivaram,

I think u got your reply from Mr. Chaitnya

Regards

TRILOCHAN
 

Agreed with Aditya except entry no.3 as CST payable can not be set off with VAT input.