19 February 2009
In manufacturing of fabric company,they purchased furniture to the extent of full amount including CST @12.5(according to MVAT)whether it is claimable.
How they should shown in accounts book regarding assets and CST??...kindly help me..sir
19 February 2009
CST is not eligible for input vat credit. Moreover if the asset is capitalised including VAT in other cases , it is not eligible for input credit either.
19 February 2009
The purchaser has to debit the asset account with the invoice value (cost+CST) and credit cash/bank/supplier as the case may be in their books of accounts.
CAclubindia
