05 March 2013
Suppose, I am a dealer in Delhi, I ordered certain goods from Kolkata, which I want to get delivered to my customer in Mumbai.How will I account for such purchase and sale in transit where CST is exempt with my share of profit?[Goods purchased from Kolkata Rs 34382(Rs 30000+12.36% Excise+2% CST) and now I want to Bill my customer Rs 34382 + my share of profit ?
Accounting treatment will be as under Trading transit pur Dr 34382/- To Party account Rs 34382/-, since you can not take benefit of CENVAT under E-1 transation, & same u can reimburse from your customer with CST amount in your Commercial Invoice .
If it is exempt under CST than you can not issue C form to Kolkata dealer & BBy dealer will not issue C form to U .You have to purchase & sell in full rate of tax to Customer Customer acct Dr 34882/- + profit To, Trading Transit sale accout Cr ---
CAclubindia
