This topics explains how to record interstate sales against Form C and interstate sales with multiple CST rates.
Interstate sales 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 sales, the following enhancements are introduced:
● Nature of transaction - Interstate Sales Exempt - With Form C is provided for states enabled to support VAT for Chhattisgarh, Himachal Pradesh, Jharkhand, Karnataka, Rajasthan, Uttarakhand and Uttar Pradesh.
Note: The option Is under CST exemption? is provided for states enabled to support VAT for Chhattisgarh. After selecting the Form to issue as Form C, you can set this option to:
♦ Yes, if the goods are taxed at 0% when purchased against Form C.
♦ No, if the transaction is against Form E1/E2.
To record an interstate sales invoice against Form C,
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Enter the reference number in Ref. field.
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 the State selected in Company VAT Details screen.
5. Select the sales ledger predefined with the nature of transaction Interstate Sales 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 receive.
o Set the option Is under CST exemption? to Yes/No as applicable. This option appears based on the state selected for VAT compliance.
o Press Enter to save and return to sales invoice.
8. Press Enter to save.
To record an interstate sales invoice against Form C
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Enter the reference number in Reference no. field.
3. Select the party ledger in Party's A/c Name option.
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 a common sales ledger in which the options 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 the Party Details screen, the tax gets calculated at 2% CST rate, irrespective of the tax rates defined in the inventory or accounting masters.
7. Select the common CST ledger.
● The ledger must be grouped under Duties & Taxes in which the options:
o Type of duty/tax is set to CST.
o Percentage of Calculation (eg 5)? is set to 0.
8. Set the option Provide VAT Details? to Yes. In the Statutory Details screen,
o Select C Form as the Form to receive.
o Enter the C Form details.
o Press Enter to save, and return to the sales invoice.
The sales invoice appears as shown below:
9. Press Enter to save.
To record an interstate sales invoice for items attracting multiple CST rates
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Enter the reference number in Reference no. field.
3. Select the party ledger in the field Party's A/c Name.
4. Set the option Is Against C Form? to No 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 a common sales ledger in which the option Is VAT/CST Applicable? is set to Applicable, and the option Set/Alter VAT Details? is not enabled.
6. Select the required stock items whose VAT rates are specified either at the stock group level, or at the stock item level. Enter the Quantity and Rate for each stock item.
7. Select the common CST ledger.
● The ledger must be grouped under Duties & Taxes in which the options:
o Type of Duty/Tax is set to CST.
o Percentage of Calculation is set to 0.
8. Click A: Tax Analysis to display 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 the sales invoice.
The sales invoice appears as shown below:
9. Press Enter to save.