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.

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: Configuration, set 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