Ledger entry for cst purchase under vat

Dear Experts,

Please let me know the ledger entries for CST purchase (Exciseable and Non - Exciseable goods) where no input credits under VAT cannot be taken.

Example:

Value of Goods:Rs.100.00

Excise Duty:12%+Edu. Cess2%+Sec.Edu.1%=Rs.12.36

CST 2% on 112.36 = Rs.2.24

Total invoice value = Rs.114.60

In this case since there is no input credit for CST purchase under VAT, whether the entries in tally should be as follows:

Dr. Insterstate purchase @ 2% against form 'C' Rs.102.24

Dr.Cenvat Credit on Inputs Rs.12.00

Dr.Education Cess on Inputs = Rs.0.24

Dr.Sec. Education & H.E Cess on Inputs = Rs.0.12

Cr. Party = Rs.114.60

Please furnish detailed entries if the entries shown above are not right one.

Regards,

Govindarajan

 

 

 

 

 

 

Replies (1)

Dear Govindarajan,

The entry done by you is absolutely perfect. Since the credit of CST cannot be taken, same will form the part of cost and since credit of excise can be taken, it will be shown as an asset

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