Interstate Purchases Against Form E1 (VAT)

You can record interstate purchases against Form E1 by selecting the nature of transaction Interstate Purchase - E1 .

This nature of transaction is provided for Andhra Pradesh, Assam, Bihar, Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Kerala, Madhya Pradesh, Maharashtra, Odisha, Puducherry, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.

To record an invoice for interstate purchase against Form E1

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .

2. Enter the 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 the Party Details screen. This option appears only when the State selected is other than the State selected in the Company VAT Details screen.

5. Select the purchase ledger grouped under Purchase Accounts with the Nature of transaction set to Interstate Purchase - E1 .

6. Select the stock item. Enter the Quantity and Rate .

Note: If the option Is Against C Form? is set to Yes in the Party Details screen, 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 . In the Statutory Details screen

o Select the forms as shown below:

Note: The options in the above screen appear based on the State selected in the Company VAT Details screen.

o Enter the relevant details.

o Press Enter to save.

The purchase invoice appears as shown below:

9. Press Enter to save.

The value of this transaction gets captured in the relevant fields of state-specific VAT/CST forms and annexures.