Gst / cst rgistrationfees
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 October 2013
Sir Please Known me Gst/Cst/Tin registration Fess In Gujrat Vat Act.
06 November 2013
Deposit under Sec.22 of GVAT Act for Rs.25000 and Towards License and Registration fees of Rs.22000 under Tatkal Registration procedure.
For more details logon on to www.commercialtax.gujarat.gov.in
For more details logon on to www.commercialtax.gujarat.gov.in
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 December 2013
i have bussiness in gujrat. i have purchase machine in maharastra. so cst amount will be capitalized or cst amount transfer to profit and loss account treated as a expenses.
what wiil i do? please suggested me.
what wiil i do? please suggested me.
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 December 2013
i have bussiness in gujrat. i have purchase machinery from maharastra.
if cst credit is not available what is tretment of cst amount. whether it is added to machinery cost or cst amount transfer to profit and loss account.
if cst credit is not available what is tretment of cst amount. whether it is added to machinery cost or cst amount transfer to profit and loss account.
27 July 2024
Here's how you can handle the CST (Central Sales Tax) and VAT/GST registration fees and the treatment of CST on machinery purchases in Gujarat:
### **1. GST/CST/TIN Registration Fees in Gujarat:**
**Gujarat VAT Act (Pre-GST):**
- **VAT Registration Fees:** Generally, for VAT registration under the Gujarat VAT Act, there was a nominal fee. For instance, it could have been around ₹500. However, since GST has replaced VAT for most goods and services, VAT registration is largely obsolete for new registrations.
**GST Registration Fees (Post-GST):**
- **GST Registration:** There is no fee for obtaining GST registration. GST registration is mandatory for businesses whose turnover exceeds the threshold limit prescribed by the GST law.
**CST Registration Fees:**
- **CST Registration:** Under the CST Act, there was no separate registration fee for CST. However, CST was applicable for inter-state sales, and businesses had to comply with CST regulations for such transactions.
### **2. Treatment of CST Amount for Machinery Purchase:**
Since CST (Central Sales Tax) was a tax on inter-state sales and was non-creditable under the old VAT regime, here's how you would handle it:
**CST on Machinery Purchase:**
- **Capitalization of CST:**
- Since CST is not eligible for input credit, the amount paid as CST on machinery purchases should be added to the cost of the machinery. This is in accordance with accounting principles where all costs incurred to bring the asset to its usable condition should be capitalized.
- **Example:** If the machinery costs ₹10,00,000 and CST paid is ₹1,00,000, then the total capitalized cost of the machinery should be ₹11,00,000.
- **Accounting Treatment:**
- **Add CST to Machinery Cost:** Debit the Machinery account with the total cost including CST.
- **Profit & Loss Account:** Since CST is not creditable, it should not be transferred to the Profit and Loss account. It forms part of the cost of the asset.
### **3. CST Credit Not Available:**
Under the CST regime, CST was not eligible for input credit. Therefore:
- **Capitalization:** The CST amount should be added to the capital cost of the machinery rather than being expensed out.
- **Profit & Loss Account:** Do not transfer CST to the Profit and Loss account. Instead, capitalize it as part of the machinery cost.
### **4. Post-GST Scenario:**
With the implementation of GST, CST no longer applies. GST has replaced both VAT and CST. Therefore:
- **For New Transactions:** GST input credit is available on machinery purchases if you are registered under GST. Ensure that you obtain a proper GST invoice and claim input tax credit on GST.
- **For Old CST Transactions:** Handle them according to the guidelines given above.
### **Summary:**
- **CST on Machinery:** Capitalize the CST amount with the cost of the machinery. Do not expense it to the Profit and Loss account.
- **GST Registration:** No fees are required for GST registration. Ensure compliance with GST regulations for claiming input tax credit and handling inter-state transactions.
If you need specific advice tailored to your situation or have more detailed queries, consulting a local tax advisor or accountant is recommended.
### **1. GST/CST/TIN Registration Fees in Gujarat:**
**Gujarat VAT Act (Pre-GST):**
- **VAT Registration Fees:** Generally, for VAT registration under the Gujarat VAT Act, there was a nominal fee. For instance, it could have been around ₹500. However, since GST has replaced VAT for most goods and services, VAT registration is largely obsolete for new registrations.
**GST Registration Fees (Post-GST):**
- **GST Registration:** There is no fee for obtaining GST registration. GST registration is mandatory for businesses whose turnover exceeds the threshold limit prescribed by the GST law.
**CST Registration Fees:**
- **CST Registration:** Under the CST Act, there was no separate registration fee for CST. However, CST was applicable for inter-state sales, and businesses had to comply with CST regulations for such transactions.
### **2. Treatment of CST Amount for Machinery Purchase:**
Since CST (Central Sales Tax) was a tax on inter-state sales and was non-creditable under the old VAT regime, here's how you would handle it:
**CST on Machinery Purchase:**
- **Capitalization of CST:**
- Since CST is not eligible for input credit, the amount paid as CST on machinery purchases should be added to the cost of the machinery. This is in accordance with accounting principles where all costs incurred to bring the asset to its usable condition should be capitalized.
- **Example:** If the machinery costs ₹10,00,000 and CST paid is ₹1,00,000, then the total capitalized cost of the machinery should be ₹11,00,000.
- **Accounting Treatment:**
- **Add CST to Machinery Cost:** Debit the Machinery account with the total cost including CST.
- **Profit & Loss Account:** Since CST is not creditable, it should not be transferred to the Profit and Loss account. It forms part of the cost of the asset.
### **3. CST Credit Not Available:**
Under the CST regime, CST was not eligible for input credit. Therefore:
- **Capitalization:** The CST amount should be added to the capital cost of the machinery rather than being expensed out.
- **Profit & Loss Account:** Do not transfer CST to the Profit and Loss account. Instead, capitalize it as part of the machinery cost.
### **4. Post-GST Scenario:**
With the implementation of GST, CST no longer applies. GST has replaced both VAT and CST. Therefore:
- **For New Transactions:** GST input credit is available on machinery purchases if you are registered under GST. Ensure that you obtain a proper GST invoice and claim input tax credit on GST.
- **For Old CST Transactions:** Handle them according to the guidelines given above.
### **Summary:**
- **CST on Machinery:** Capitalize the CST amount with the cost of the machinery. Do not expense it to the Profit and Loss account.
- **GST Registration:** No fees are required for GST registration. Ensure compliance with GST regulations for claiming input tax credit and handling inter-state transactions.
If you need specific advice tailored to your situation or have more detailed queries, consulting a local tax advisor or accountant is recommended.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
