Creating an Inter–state Purchase Invoice

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Inter-state Purchase against Form C

To create Purchase Voucher

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

  1. Select As Invoice

Note: Purchase Voucher can also be entered in voucher mode using Ctrl+V: As Voucher button.  

  1. Enter the Supplier Invoice No. and Date

  2. Select the Party’s A/c Name from the List of Ledger Accounts

  3. In the Party Details screen, enter/modify the required details

  4. In the Purchase Ledger field select the ledger with the VAT/Tax class - Interstate Purchases @ 2% Against Form C.

  5. On selecting the Inter-state Purchase Ledger, the VAT/Tax Class appears accordingly. In case the VAT/Tax Class is not defined in the master, select Interstate Purchases @ 2% Against Form C from the VAT/Tax Class list

  6. Select the Name of Item from the List of Items

Note: To create an Item, refer to the topic, Stock Items.    

  1. Enter the Quantity and Rate. The value is automatically displayed in the Amount field.

  2. Select CST ledger grouped under Duties & Taxes with Type of Duty/Tax as CST and VAT/Tax class - Interstate Purchases @ 2% Against Form C.

Note: In case of States where the VAT/Tax classifications for Multiple CST rates are yet to be provided, follow the procedure given below:

1. In the Purchase Accounts group set the option - Used for Calculation (eg. Taxes, Discounts) to Yes and accept the Group Alteration screen.

2. Create the CST ledger by grouping it under Purchase Accounts. Accept the ledger creation screen.

3. In the purchase invoice, select the CST ledger created under Purchase Accounts. Enter the Percentage and the amount of CST will get calculated automatically, else enter the CST amount. The CST amount entered will form part of the purchase cost.

  1. Set Is e-Sugam Applicable to Yes.

Note: The Commercial Taxes Department of Karnataka has introduced e-Sugam to upload the transportation details of notified goods before the movement of such goods. Set the option - Is e-Sugam Applicable to Yes on purchase of Notified Goods else set it to No.

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  1. The e-Sugam sub-screen will be displayed for entering the details pertaining to:

  2. Invoice Delivery Date: The invoice date will be captured here.

  3. From Place: Enter the place from where the goods are despatched.

  4. To Place (Destination): Enter the name of place where the goods are to be delivered.

  5. Category of Transactions: The category of transactions as listed in the e-Sugam entry form in the Department website gets displayed as list of VAT Category Type. Select the required category based on the nature of transaction.

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  1. Document Type: Based on the Category of transaction selected the Document Type gets displayed in this field. On selecting the following category, two document types get displayed for selection. The required document needs to be selected here:

  2. For the category - V-G  For Jobwork/Return After Jobwork/Line Sale, the Document types - LJV Consignment for Sale (Receipts) and OTH Others gets listed.

  3. For the category - V-K  Others, the Document types - LJV Consignment for Sale (Receipts) and  OTH Others gets listed.

  4. Transporter Name (Carries Name / Agent): Enter the name of transport service used by seller to despatch goods.

  5. Vehicle Number (Despatch through): Enter the Vehicle Number here.

  6. Bill of lading/LR-RR No.: Enter the bill of lading/LR-RR number

  7. Quantity with Units: The quantity entered for each stock item will be captured along with the respective unit of measurement.

  8. e-Sugam Number: The unique number displayed in the e-Sugam acknowledgement obtained on uploading dealer TIN with the transportation details before despatch of these goods needs to be entered here. The seller of goods will inform the number to the purchaser.

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  1. Press Enter to return to purchase invoice creation screen.

  2. Select C Form as Form to Issue.

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  1. Enter the series number of C Form in Form Series No. field. This field is introduced to enter the series number of Form C as per the statutory requirement and capture the same in Forms Receivable/Issuable report.

  2. On selecting the Declaration form, the Purpose Code screen gets displayed. Select the required option from the Used for table. For old entries, the Purpose Code will be automatically set to 1. Resale.

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Note: The Purpose Code screen gets displayed only for Karnataka VAT enabled Companies. On exporting the data to ONLINE_CST_COM.xls template and converting to ONLINE_CST_COM.xml format, the serial number of Purpose Code gets captured. Also when the data is exported directly in XML format, the serial number of Purpose Code selected while invoicing gets captured in the XML file - OnlineCSTForms.xml.

  1. The Form number and Date fields will be displayed on selecting the Form to Issue from the Form Types list.

  2. Enter the Form number and Date for the Form selected

  3. Set Show Statutory Details field to No

  4. Enter Narration if required

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  1. Press Enter to accept and save.

Interstate Purchases of Multiple CST Rates

In the Purchase Invoice,

  1. Enter the Supplier Invoice No. and Date.

  2. Select the Party’s A/c Name from the List of Ledger Accounts.

  3. Select the Name of Item taxable @ 1%. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.

  4. In the Accounting Details screen, select the purchase ledger with the VAT/Tax class - Interstate Purchases @ 1%.

  5. Select the stock item taxable @ 5%. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.

  6. In the Accounting Details screen, select the purchase ledger with the VAT/Tax class - Interstate Purchases @ 4%.

  7. Select the stock item taxable @ 13.5%. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.

  8. In the Accounting Details screen, select the purchase ledger with the VAT/Tax class - Interstate Purchases @ 13.5%.

  9. Select the stock item taxable @ 14%. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.

  10. In the Accounting Details screen, select the purchase ledger with the VAT/Tax class - Interstate Purchases @ 14%.

  11. Select the stock item taxable @ 15%. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.

  12. In the Accounting Details screen, select the purchase ledger with the VAT/Tax class - Interstate Purchases @ 15%.

  13. Select the stock item taxable @ 20%. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.

  14. In the Accounting Details screen, select the purchase ledger with the VAT/Tax class - Interstate Purchases @ 20%.

  15. Select the CST ledgers grouped under Duties & Taxes with Type of Duty/Tax as CST and VAT/Tax class - Interstate Purchases @ 1%, Interstate Purchases @ 5%, Interstate Purchases @ 13.5%, Interstate Purchases @ 14%, Interstate Purchases @ 15% and Interstate Purchases @ 20%. The amount of CST is automatically calculated on the assessable value.

  16. Select Not Applicable in Form to Issue field.

  17. The field Show Statutory Details will be set to No which can be enabled if required.

  18. Enter the details in the Narration field, if required.

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  1. Press Y or Enter to accept and save.

Note: Depending on the nature of purchase transaction you can select the applicable Form Type.

(i)  C Form is for inter-state purchases made from registered dealers.

(ii)  F Form is for Branch transfers.

(iii) H Form is for deemed exports.

(iv) I Form is used in case of Special Economic Zones.

In case where the inter-state purchase transaction does not involve the issue of C Form, select Not Applicable in the Form to Issue field of the purchase invoice.

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