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 „          Allow separate 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.