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Transit Sales against E1 and E2 Forms in Tally.ERP 9 @ LAB Practice

According to Section 6(2) of the CST Act, the first inter-state sale is taxable and the subsequent sale during movement of goods by transfer of documents is exempt from tax, if the sale is made to a registered dealer.

 

Let us consider the following example :

 

On 13-4-2015, M/s. Swayam Traders despatched the following goods to M/s. Star Power Controls, Orissa and raised an Invoice on M/s. Swastik Associates in Madhya Pradesh and charged 4% CST against C Form.

 

Product Description

Quantity

Rate

Black  Grey Mix

300 Kgs

240

Chocolate Brown

50 Kgs

270

P.O. Red

50 Kgs

245

 

 

During the movement of goods, Swastik Associates subsequently sold the goods to M/s. Rainbow Colours in West Bengal and Rainbow Colours ultimately sold the goods to M/s. Star Power Controls in U.P.

 

On the same day, Swayam Traders received C Form vide No. TC-2K-15023 dt. 13-4-15 from

Swastik Associates and issued E1 Form vide no. TE-1Q-0130 dt. 13-4-15.

 

In this case, sale from Swastik Associates to Rainbow Colours and Rainbow Colours to Star Power Controls is by way of transfer of documents. Swayam Traders has to receive C Form from Swastik Associates and will issue an E1 Form to Swastik Associates. Later, Swastik Associates will issue E2 Form to Rainbow Colours and receive C Form. Finally, Rainbow Colours will issue E2 Form to Star Power Controls and receive the C Form.

 

 

Chart showing movement of goods under E1 and E2 :

Transit Sale

Create the following Party Ledger

 

 

Central Sales Tax (CST)

 

Ledger

Under

Maintain balances bill-by-bill

Inventory values are affected

Swastik Associates

Sundry Debtors

Yes

No

 

The entries to be made in the books of M/s. Swayam Traders with regard to the above transaction are given in the following pages.

 

 

Enter the details of the trasaction in a Sales Invoice

Setup :

 

        Press F12: Configure and set Yes to

          Allow separate Buyer Consignee names

#                      Activate ‘E1’ or ‘E2’ Transaction


Fig-4
TIPS : The option ‘Activate ‘E1’ or ‘E2’ Transaction’ is activated as this transaction amounts to the movement of goods by the transfer of documents.

Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

 

        Change the date to 13-4-2015.

        Select Swastik Associates in the Party's A/c Name and press Enter to view the supple- mentary details screen.

        In the Buyer details section enter the following details and accept the screen

          Consignee: Star Power Controls

          Address: B-3/114, Bhusan Vihar, Bubaneshwar, Orissa

          Buyer: Swastik Associates

          Address: 603, Marvel Complex, Madhya Pradesh

        Enter the details of the transaction in a Sales invoice and accept the default bill allocations in the Bill-wise Details screen.

 

 

The completed Sales Invoice appears as shown below:

Fig-5
                    Press Y or Enter to accept the screen.
TIPS :  ‡   In the books of Swastik Traders, the C Form received from Rainbow Colours has to be entered and E2 Form needs to be  selected. This must be issued since it is a subsequent inter-state sales by transfer of documents of title.

 

‡   Generally, blank forms are received at the beginning of the year or on the commencement of an inter-state transaction with the  respective dealer. However, Tally.ERP 9 gives you the flexibility to update Form Nos. and Date in the Reports Menu.
 
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1- Company Setup for CST Features of Tally.ERP 9

 

2- Creating Masters for CST Transactions

 

3- Inter-State Purchases

On 10-4-2015, M/s. Swayam Trade rs purchased the following items from M/s. NeXT Paints

(P) Ltd. New Delhi, vide Invoice No. 12345/15-16, amounting to Rs. 148500.

 

Product Description

Quantity

Rate

Black  Grey Mix

500 Kgs

190

Golden Brown

100 Kgs

285

Metallic White

100 Kgs

250

 

 

Enter the details of the transaction in a Purchase Invoice.
 

4- Inter-State Sales against C Form

On 17-4-2015, M/s. Swayam Traders sold the following items to M/s. Shweta Industries, Delhi against C Form. The freight charges of Rs. 750 were included in the Invoice.

 

Product Description

Quantity

Rate

Black  Grey Mix

100 Kgs

240

Golden Brown

20 Kgs

365

Metallic White

10 Kgs

290

 Enter the details of the transaction in a sales invoice

 

5- Transit Sales against E1 and E2 Forms

According to Section 6(2) of the CST Act, the first inter-state sale is taxable and the subsequent sale during movement of goods by transfer of documents is exempt from tax, if the sale is made to a registered dealer.

 

Let us consider the following example :

 

On 13-4-2015, M/s. Swayam Traders despatched the following goods to M/s. Star Power Controls, Orissa and raised an Invoice on M/s. Swastik Associates in Madhya Pradesh and charged 4% CST against C Form.

 

 

Product Description

Quantity

Rate

Black  Grey Mix

300 Kgs

240

Chocolate Brown

50 Kgs

270

P.O. Red

50 Kgs

245

 

 

6- Branch Transfers/ Consignment Sales against F Form

On 15-4-2015, M/s. Swayam Traders despatches the following goods to their Branch in

Uttar Pradesh.

 

Product Description

Quantity

Rate

Golden Brown

20 Kgs

285

Metallic White

30 Kgs

250

 

 

7- Exports against H Form

On 18-4-2015, M/s. Swayam Traders supplied 100 Kgs of Black  Grey Mix at Rs. 240 per Kg to M/s. Surya Exports against the submission of H Form vide Bill No. 102504 dt. 18-4-15.

 

8- Sales to SEZ Units against I Form

On 20-4-2015, M/s. Swayam Traders supplied 50 Kgs of Metallic White at Rs. 290 per Kg to M/ s. Track Innovations (P) Ltd. a unit in SEZ located at Chennai, against the submission of the I Form.
 

9- Payment of CST

Central Sales Tax is payable in the State from which the goods are sold. The tax so collected is retained  by the state in which it is collected. The State Government Sales Tax Officer who assesses and collects local State Sales Tax also assesses and collects Central Sales Tax.

 

The returns under General Sales Tax of the appropriate State has to be submitted within the due date. The CST payable should be rounded off to the nearest rupee.

 

 

On 20-5-2015, M/s. Swayam Traders paid an amount of Rs. 7,308 towards CST payable of April 2015 vide Cheque No. 015630 dt. 20-5-15.

 
 
 
Company Information @ Tally.ERP9
Group & Ledger

Introduction
1. THE GROUP
2. THE LEDGER
3. VOUCHERS TYPES

Advanced Inventory / Stock
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Re-Order Levels
Tracking Numbers
Batch-wise Details
Additional Cost Details
Bill of Materials (BOM)
Price Lists and Price Levels
Stock Valuation
Zero Valued Entries
Inventory Ageing Report
Actual and Billed Quantities
Advanced Usage of Vouchers
Maintain Bill-wise Details
Cost Center and Cost Category
Interest Calculation
Reversing Journals
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Optional Voucher
Using Tracking Number
 
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Accounting Reports
Accounting Vouchers
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Service Tax
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