You can record interstate purchase for Chandigarh 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 transit transaction against Form E2.
● The goods are taxed at 0% under section 8(5) of CST Act read with section 8(4) (against Form C).
To record such purchases, the following enhancements are introduced:
● Nature of transaction - 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 15 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 15 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 Chandigarh.
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 Enter the purchase details.
o Select C Form as the Form to issue.
o Set the option Is Under CST exemption to Yes/No as required.
o Press Enter to save 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: Purchases.
2. Enter Supplier Invoice No. and Date.
3. Select the Party’s A/c Name from the List of Ledger Accounts.
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 Chandigarh.
5. Select the interstate purchase ledger in Purchase Ledger.
6. Select the required stock items.
Note: (i) The stock item is not configured for tax inclusion and MRP.
(ii) Irrespective of tax rate defined in the item master, the tax rate will change based on the nature of transaction selected in the invoice.
7. Enter the Quantity and Rate for each stock item.
8. Select the common CST ledger (grouped under Duties & Taxes, Type of Duty/Tax set to CST with Percentage of Calculation set to 0).
Note: Rate specific CST ledgers can also be used here.
9. Set the option Provide VAT Details? to Yes. Enter the additional purchase details.
10. Press Enter to return to purchase invoice. The purchase invoice appears as shown below:
11. 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 Party's A/c Name option.
4. Set the option Is Against C Form? to No in Party Details screen. This option appears only when the State selected is other than Chandigarh.
5. Select a common purchase ledger in which the option Is VAT/CST Applicable? is set to Applicable, and Set/Alter VAT Details? is set to No.
6. Select the required stock items whose VAT rates are specified either at the stock group or stock item level. Enter Quantity and Rate for each stock item.
7. Select the common CST ledger.
8. Set the option Provide VAT Details to Yes to view the Statutory Details screen.
9. Provide additional purchase details as shown below:
10. Press Enter to return to purchase invoice.
11. Click A: Tax Analysis button to display the Tax Analysis screen.
12. Click F1: Detailed button to view the names of stock items. The Tax Analysis screen appears as shown below:
13. Press Esc to return to purchase invoice. The purchase invoice appears as shown below:
14. Press Enter to save.