You can record interstate purchase for Delhi at different CST rates against Form C, depending on the transaction scenario. This topic mentions about the scenarios and applicable CST rates to be charged for the interstate purchases.
Interstate purchases have to be taxed at 0% CST rate against Form C when:
● It is a transit transaction against Form E2.
● The goods are taxed at 0% under section 8(5) of the CST Act, read with section 8(4) (against Form C).
To record such purchases, the following enhancements are introduced:
● A new option under Nature of transaction, namely Interstate Purchase Exempt - With Form C is provided.
● The option Is under CST exemption? is provided. After selecting the Form to issue as Form C, you can set this option to:
o Yes, if the goods are taxed at 0% when purchased against Form C. In the Form DVAT 16 report, the text Under exemption appears when this option is set to Yes.
o No, if the transaction is against Form E1/E2. In the Form DVAT 16 report, the text Subsequent of E1/E2 appears when this option is set to No.
To record an interstate purchase invoice against Form C
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
2. Enter Supplier Invoice No. and Date.
3. Select the party ledger in the field Party's A/c Name.
4. Set the option Is Against C Form? to Yes in Party Details screen. This option appears only when the State selected is other than Delhi.
5. Select the purchase ledger predefined with the nature of transaction Interstate Purchase Exempt - With Form C.
6. Select the required stock items.
7. Set the option Provide VAT Details? to Yes. In the Statutory Details screen,
o Select C Form as the Form to issue.
o Set the option Is Under CST exemption? to Yes/No, as shown below:
o Press Ctrl+A to accept and return to purchase invoice.
The purchase invoice appears as shown below:
8. Press Enter to save.
To record an interstate purchase invoice against Form C
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
2. Enter Supplier Invoice No. and Date.
3. Select the party ledger in the field Party's A/c Name.
4. Set the option Is Against C Form? to Yes in Party Details screen. This option appears only when the State selected is other than Delhi.
5. Select a common purchase ledger in which the option Is VAT/CST Applicable? is set to Applicable, and Set/Alter VAT Details? is not enabled.
6. Select the required stock items.
Note: If the option Is Against C Form? is set to Yes in Party Details screen, and the nature of transaction is selected as Interstate Purchase - Against Form C, the tax gets calculated at 2% CST rate. This is irrespective of the tax rates defined in the inventory or accounting masters.
7. Select the CST ledger grouped under Purchase Accounts or Direct Expenses with the option Type of duty/tax set to CST.
8. Set the option Provide VAT Details? to Yes.
o Enter the C Form details in Statutory Details screen as shown below:
o Press Enter to save and return to purchase invoice.
The purchase invoice appears as shown below:
9. Press Enter to save.
To record an interstate purchase invoice for items attracting multiple CST rates
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases.
2. Enter Supplier Invoice No. and Date.
3. Select the party ledger in the field Party's A/c Name.
4. Set the option Is Against C Form? to Yes in Party Details screen. This option appears only when the State selected is other than Delhi.
5. Select a common purchase ledger in which the option Is VAT/CST Applicable? is set to Applicable, and Set/Alter VAT Details? is not enabled..
6. Select the required stock items whose VAT rates are specified either at the stock group or at the stock item level. Enter Quantity and Rate for each stock item.
7. Select the CST ledger grouped under Purchase Accounts or Direct Expenses with the option Type of duty/tax set to CST.
8. Click A: Tax Analysis to view the Tax Analysis screen.
o Click F1: Detailed to view in detailed mode. The Tax Analysis screen appears as shown below:
o Press Esc to return to purchase invoice.
The purchase invoice appears as shown below:
9. Press Enter to save.
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