Friday, August 3, 2012

Q Base : CST - Transit Sales against E1 and E2 Forms' @ Tally.ERP 9

'Transit Sales against E1 and E2 Forms' @ Tally.ERP 9
According to Section 6(2) of the CST Act, the first inter-state sale is taxable and the subsequent sale duringmovement of goods by transfer of documents is exempt from tax, if the sale is made to a registered dealer.

Let us consider the following example :

On 13-4-2009, M/s. Oriental Traders despatched the following goods to M/s. Star Power Controls, Orissa and raised an Invoice on M/s. Swastik Associates in Madhya Pradesh and charged 4% CST against C Form

Product Description
Quantity
Rate
Black Matt
300 Kgs
240
Chocolate Brown
50 Kgs
270
P.O. Red
50 Kgs
245

During the movement of goods, Swastik Associates subsequently sold the goods to M/s. Rainbow Colours inWest Bengal and Rainbow Colours ultimately sold the goods to M/s. Star Power Controls in Orissa.

On the same day, Oriental Traders received C Form vide No. TC-2K-15023 dt. 13-4-09 from
Swastik Associates and issued E1 Form vide no. TE-1Q-0130 dt. 13-4-09.

In this case, sale from Swastik Associates to Rainbow Colours and Rainbow Colours to Star Power Controls is byway of transfer of documents. Oriental Traders has to receive C Form from Swastik Associates and will issue an E1Form to Swastik Associates. Later, Swastik Associates will issue E2 Form to Rainbow Colours and receive C Form. Finally, Rainbow Colours will issue E2 Form to Star Power Controls and receive the C Form.

 Chart showing movement of goods under E1 and E2 :

Create the following Party Ledger

Central Sales Tax (CST)

Ledger
Under
Maintain balances bill-by-bill
Inventory values are affected
Swastik Associates
Sundry Debtors
Yes
No

The entries to be made in the books of M/s. Oriental Traders with regard to the above transaction are given in the following pages.

Enter the details of the trasaction in a Sales Invoice
Setup :

        Press F12: Configure and set Yes to
          Alloseparate Buyer Consignee names
                     Activate ‘E1’ or ‘E2’ Transaction
Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

        Change the date to 13-4-09.
        Select Swastik Associates in the Party's A/c Name and press Enter to view the supple- mentary details screen.
        In the Buyer details section enter the following details and accept the screen
          Consignee: Star Power Controls
          Address: B-3/114, Bhusan Vihar, Bubaneshwar, Orissa
          Buyer: Swastik Associates
          Address: 603, Marvel Complex, Madhya Pradesh
        Enter the details of the transaction in a Sales invoice and accept the default bill allocations in the Bill-wise Details screen.

 The completed Sales Invoice appears as shown below:



                    Press Y or Enter to accept the screen.

Q Base (CST) : Inter-State Sales against C Form' @ Tally.ERP 9

Inter-State Sales against C Form@Tally.ERP 9
On 7-4-2009, M/s. Oriental Traders sold the following items to M/s. Sunrise Industries, Delhi against C Form. The freight charges of Rs. 750 were included in the Invoice.
  
Product Description
Quantity
Rate
Black Matt
100 Kgs
240
Golden Yellow
20 Kgs
365
Metallic Blue
10 Kgs
290


Enter the details of the transaction in a sales invoice

Setup :


       Create a ledger Freight charges under indirect expenses.

 The completed Sales Invoice appears as shown below:



                    Press Y or Enter to accept the sales invoice

Q Base : CST - Entering Inter-State Purchase Inovice' @ Tally.ERP 9


'Entering Inter-State Purchase Inovice' @ Tally.ERP 9
On 5-4-2009, M/s. Oriental Traders purchased the following items from M/s. Unique Paints (P) Ltd. Goa, vide Invoice No. 2458/08-09, amounting to Rs. 148500.

Product Description
Quantity
Rate
Black Matt
500 Kgs
190
Golden Yellow
100 Kgs
285
Metallic Blue
100 Kgs
250


Enter the details of the transaction in a Purchase Invoice.
Setup :
‡        In the F12: Configurationset Use common ledger A/c for item allocation to Yes.


The completed Purchase Invoice appears as shown below:

                    Press Y or Enter to accept the screen
You can also fill the Form No. during the Voucher Entry, if the forms are issued at the time of purchase. But usually, theyare submitted at the end of the year covering all the transactions from that dealer during the year.

Q Base : CST : Enabling CST and Creating Master Ledgers' @ Tally.ERP 9

'Enabling CST and Creating Master Ledgers'@ Tally.ERP 9
Central Sales Tax integrated in Tally.ERP 9 takes care of your inter-state transactions. It elimi- nates error-proneinformation and comments on appropriate forms to be issued/ received at the end of the month or a financial year or at any point of time. It takes a one-time configuration in Tally.ERP 9 for Central Sales Tax features to be activated.

 Company Setup

Create a new company - Oriental Traders to understand the CST Feature of Tally.ERP 9.

Oriental Traders is a registered dealer under the CST Act and is one of the leading all India dis- tributors of industrial powder paints. It purchases various shades of powder paints from Unique Paints (P) Ltd. Margao, Goa and supplies to registered dealers outside the State on submission of the prescribed formats.

                     Enter the details in the Company Creation screen as shown below



        Press Y or Enter to accept the company creation screen.

Central Sales Tax (CST)

                    Enable VAT, by activating Enable Value Added Tax (VAT) and Set/Alter VAT details in the F11: Features(Statutory and Taxation Features). Once VAT is enabled, Statutory Masters related to VAT and CST are also automatically loaded in Tally.ERP 9
Creating Masters

i. Purchases and Sales Ledgers

Ledger
Under
Inventoryvalues are affected
Used inVATreturns
VAT/Tax
Class
CST Sales
Sales Accounts
Yes
Yes
Inter-State Sales
CST Purchases
Purchase Accounts
Yes
Yes
Inter-State Purchase

ii. Party Ledgers

Ledger
Under
Maintain balances bill-by-bill
Inventory values are affected
Sunrise Industries
Sundry Debtors
Yes
No
Unique Paints (P) Ltd.
Sundry Creditors
Yes
No


iii. Output CST Ledger

Ledger
Under
Type of
Duty/Tax
VAT/Tax
Class
Inventoryvalues are affected
Percentageof calcula- tion
Method of calculation
CST @ 4%
Duties and taxes
CST
Inter-State
Sales
No
4
On Total
Sales


iv. Input CST ledger

Ledger
Under
Inventoryvalues are affected
Used in VAT Returns
VAT/Tax
Class
Input CST
Purchase accounts
Yes
Yes
Not applicable


V. Stock Items

Name of Item
Under
Units of measure
Black Matt
Primary
Kgs
Golden Yellow
Primary
Kgs
Metallic Blue
Primary
Kgs