wat is the accounting treatment for cst purchases and sales ...whether cst paid on purchase can be clubbed up with purcahses and the entire amount along with cst amount can be debited to purchases
Rakesh Kumar (B.Com ( H ) Pursuing CA Final ) (327 Points)
13 May 2009wat is the accounting treatment for cst purchases and sales ...whether cst paid on purchase can be clubbed up with purcahses and the entire amount along with cst amount can be debited to purchases
Raman
(Artilcle Assistant )
(57 Points)
Replied 14 May 2009
yes in CST purchase the entire amount including CST paid on purchse is debited to the Purchase reason being that we cannot take credit of this amount so we treat it as a part of direct expenses & debited to the Purchases A/c,
However in case of CST sales we account the CST paid in seprate A/c reason being that this amount is our liablity & which will be settled by paying the CST amount to the department.
Thanks & Regard
Raman Gora
pulkit gupta
(CA final student)
(160 Points)
Replied 16 June 2009
1) Purchase A/c.........dr. 104
To Creditor A/c 104
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2) Debtor A/c.............Dr. 208
To Sales 200
To CST 8
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