Vat in inter state purchase

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Practice
85 Points Joined December 2016

Hai,

Can I know what is the accounting treatment of VAT paid on inter state purchases?

Thanks in advance

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On 17 May 2017 at 15:17 Report
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Financial Accountant
225 Points Joined September 2015
we can't claim vat/cst for input claim so vat paid on interstate purchase is a part of purchase. (1) Purchase a/c dr. CST/VAT paid a/c dr. To sundry Creditors (2) Purchase a/c dr. To CST/VAT paid You can also entered a single entry for that.
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On 18 May 2017 at 06:34
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Practice
85 Points Joined December 2016

so is the VAT paid is considered as cost of purchases?

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On 18 May 2017 at 14:46
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Tax Consultant
296 Points Joined May 2010

Hello Varsha,

First of all Please note that In Inter State Transactgions Tax Levy is known as CST and not VAT. Yes CST paid is considered as cost of purchase.

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On 18 May 2017 at 15:08
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Financial Accountant
225 Points Joined September 2015
Yes cst consider as part of purchase.
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On 18 May 2017 at 22:08


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