Account Notes
Content
Director: Mr. Bharat Mehta
Your Account Notes Day
-1
What is Account : Recording Business Transaction in a Systematic Manner so that we can find out our business our business profit or loss and our financial our financial position. position . Business: Business: To Carry on any activity on a regular basis to earn Profit. Systematic Manner : Presenting information in a meaningful order so that it is easy to read, understand and analyzed. Business Profit or Loss: Loss : Profit earned from business activities not from outside sources. Financial Position: Position: Capital Balance, Cash in hand, Dues, Loan Balance, Bank Balance, Assets Position What is Included in Activities: Activities : Sale-Purchase, Receipt-Payment, Profit-Loss Different Parties Involved in Business: Business : Owne Owners rs-DebtorsCreditorsBanks-
Prop Propri riet etor or or Part Partne nerr or or Sha Share re Hold Holder er To Whom Goods are sold From Whom Goods are purchased From Where we tak take Loan or Make Our Cheque Transaction.
What an Accountant Do: Do : Maintain books of Accounts in a proper manner so that we can find our debtor or creditors, capital of the owner, cash in hand and profit or loss of the firm till date.
Director: Mr. Bharat Mehta
Scope of Account : Book Writing, Balancing Ledgers, Find out Cash in hand, make a correct Trial Balance, Prepare Trading and Profit & Loss Account to ascertain the Profit or loss and at last finalizing the Balance Sheet. Terms mostly used in Book Keeping : Assets Liabilities Sale Purchase Expenses Income
: : : : : :
Machinery, Building, Furniture, Cash, Bank Balance Creditors, Ca Capital, Lo Loan Sale of Material, Sale of Finished Goods Purchase of of Ma Material, Pu Purchase of of Fi Finished Go Goods Rent, Salary, Wages, Telephone Exps, etc. Commission, Rent Recd., Interest Recd. Assets
Fixed Assets
Current Assets
Machinery Land & Building Furniture Car, Scooter Instruments
Cash Stock in hand Advances Debtors Bank Balance
Fixe Fixed d Asse Assets ts are are thos those e asse assets ts,, whic which h are are purc purcha hase sed d to run run the the business smoothly and remain fixed for a business. There is no sale or purchase of these items on a regular basis. Current Assets are those assets that are by their nature can be conv conve erted rted into nto cash cash with ith in a year year or from from thos those e cash cash can can be generated in a short period. Liabilities
Capital
Term Liabilities Secured Loans Unsecured Loans
Current Liabilities Creditors Expenses Payable
Director: Mr. Bharat Mehta
Day -2 Capital : Amount Deposit From Owner side. Capi Capital tal =
All All Ass Assets ets – Exte Externa rnall Liab Liabil ilit itie ies s
For Example suppose that the following balance appeared in the books of a firm: Cash Debtors
20000/40000/-
Machinery 50000/Creditors 30000/-
St o c k
Capital tal = All Assets – Extern terna al Liabilities All Assets = Cash+ Machinery+ Stock+ = 20000+ 50000+ 100000+ = 210000/External Liabilities = Creditors = 30000/Capital = 210000- 30000 = 180000/-
100000/-
Debtors 40000
Term Loan : Loan can be Short Term or Long Term. Short Term : For Less Than One year & this is called Current Liab. Long Term Term : For More More Than Than One One year Loan Can be Secured or Unsecured. Secured Loans : Against Security of Property, etc. Unsecured Loans: Without Security Current Liabilities: Liabilities that are to be paid with in a year i.e. payment to be made to Creditors, Payment to be made to workers, Rent payable, etc. Conclusion : From the above we can find out the conclusion that: Capital
= All Assets Or All Assets = Capital + Or Externa rnal Liab.= All Assets -
External Liab. External Liab. Capital.
Director: Mr. Bharat Mehta
Nature of Assets And Liabilities: All the Assets have Debit Balances All the Liabilities have Credit Balance All the Expense Should be Debited All the Incomes Should be Credited
If Assets Increase If Assets Decrease
: :
It Should be Debited It Should be Credited
If Liabilities Increase If Liabilities Decrease
: :
It Should be Credited It Should be Debited
: : : : : : : : : : : :
Furniture A/c – Debit Building A/c – Debit Cycle A/c – Credit Car A/c – Credit Purchase A/c – Debit Sale A/c - Credit Rent A/c – Debit Salary A/c – Debit Commission – Credit Interest Recd. A/c – Credit Rent Payable – Credit Salary Payable - Credit
Example: Furniture Purchased Construction of Building Cycle Sold Car Sold Goods Purchased Sale Made Rent Expenses Salary Expenses Commission Recd. Interest Recd. Rent Due, but not Paid Salary Due, but not Paid Balance Sheet: It is easier to understand the nature of assets and liabilities if we understand a Balance sheet Performa. A simple balance sheet is as:Balance Sheet Liabilities
Amount
Assets
Amount
Capital Creditors
180000 30000
Cash Machinery Stock Debtors
20000 50000 100000 40000
Total 210000
210000
Total
Director: Mr. Bharat Mehta
Example 1.
Gopal Started business with Rs. 75000 as Capital Assets = Liabilities
Cash 75000
=
+
Capital
+
75000
+ +
Capital 75000
+
75000
Liabilities 0
+ +
Capital 75000
0
+
75000
+
Capital
+ + +
75000 0 75000
+
Capital
+ + +
75000 3000 78000
0
2.
Gopal purchased furniture for Cash for Rs. 5000 Assets = Liabilities Cash + Furniture = 0 -5000 + 5000 70000 + 5000 = 0 3.
Goods purchased for Cash for Rs. 20000 Assets = Cash + Furniture + Stock = 70000 + 5000 + 0 -20000 + 0 + 20000 = 50000 + 5000 + 20000 = 4.
Gopal purchased goods on credit for Rs. 16000 Assets = Liabilities Cash + Furniture + Stock = Creditor 50000 + 5000 + 20000 = 0 0 + 0 + 16000 = +16000 50000 + 5000 + 36000 = 16000 5.
Goods costing of Rs. 12000 sold for Rs. 15000 Assets = Liabilities Cash + Furniture + Stock = Creditor 50000 + 5000 + 36000 = 16000 +15000 + -12000 = 0 65000 + 5000 + 24000 = 16000 6.
Goods costing of Rs. 12000 sold on Credit to Ram for Rs. 15000 Assets = Liabilities + Cash + Furniture + Stock + Debtors = Creditor 65000 + 5000 + 24000 = 16000 + 0 + 0 + -12000 + 15000 = 0 + 65000 + 5000 + 12000 + 15000 = 16000 + 7. Paid for 1000 for Rent Assets Cash + Furniture + Stock 65000 + 5000 + 12000 -1000 + 0 + 0 64000 + 5000 + 12000
+ + + +
= Liabilities Debtors = Creditor 15000 = 16000 0 = 0 15000 = 16000 Balance Sheet
Capital 78000 +3000 81000
+
Capital
+ + +
81000 -1000 80000
Liabilities
Amount
Assets
Amount
Capital Creditors
80000 16000
Cash Furniture Stock Debtors
64000 5000 12000 15000
Director: Mr. Bharat Mehta
For 1. 2. 3. 4. 5. 6. 7. 8. 9.
Home Work Mukesh started business with Cash. Purchased goods for Cash. Purchased goods on Credit. Purchased furniture for Cash Rent Paid Commission Recd. Withdraw Cash for personal use Sold goods on credit (Cost Rs. 30000) Paid to Creditors
80000 28000 20000 6000 2000 500 3000 40000 15000
Director: Mr. Bharat Mehta
Q2. 1. 2. 3. 4.
Started business with cash Rs. 50000 and goods Rs. 20000. brought goods for cash Rs. 15000 and on credit Rs. 10000 goods costing Rs. 24000 sold at a profit of 25%. Half of the payment received in cash. purchased furniture for office use Rs. 6000 and for household use Rs. 4000.
Hint. 1. Cash Stock Capital
Increase Increase Increase
50000 20000 70000
2.
Cash Stock Creditor (Liab.)
Decrease Increase Increase
15000 25000 10000
3.
Stock Capital (Profit) Cash Debtors
Decrease Increase Increase Increase
24000 6000 15000 15000
4.
Furniture Cash Capital
Increase Decrease Decrease
6000 10000 4000
Last Balances Cash Stock Debtors Furniture
Total
40000 21000 15000 6000
82000
Creditors Capital
10000 72000
Total
82000
Director: Mr. Bharat Mehta
Registration of Dealer:
Every businessman who wants to deal in taxable items and his expected sale for a year will exceed Rs. 500000.00, he is required to registered under VAT Act, 2003. Further if a businessman deals in taxable item and he wants to made any sale out of Haryana, he is liable for registration under VAT, nevertheless his sale doesn’t exceed Rs. 500000.00.
Documents Required for Registration in case of Proprietorship Unit:
1.
Application Form
2.
Court Fees Stamp for Registration Fees
3.
One Photo of Prop.
4.
2 Sureties (Gurantor-Who had already registered under VAT)
5.
One photo of each sureties.
6.
Sureties Bond
7.
Statement of Fact.
8.
Address proof of Prop i.e. Ration Card
9.
Identity proof of Prop. i.e Voter Card
10.
Map of the Site
11.
Rent Deed if Rented Property.
12.
Registry copy if Owned Property.
13.
Affidavit.
14.
Power of Attorney.
15.
PAN of the Proprietor.
16.
First Import bill.
17.
Stamps of the Firm
18.
Books of Accounts.
Documents Required for Registration in case of Proprietorship Unit:
1.
Application Form
2.
Court Fees Stamp for Registration Fees
3.
One Photo of each Partner.
4.
2 Sureties (Gurantor-Who had already registered under VAT)
5.
One photo of each sureties.
6
S
i
B
d
Director: Mr. Bharat Mehta 7.
Statement of Fact.
8.
Address proof of each Partners i.e. Ration Card
9.
Identity proof of each Partners. i.e Voter Card
10.
Map of the Site
11.
Rent Deed if Rented Property.
12.
Registry copy if Owned Property.
13.
Affidavit.
14.
Power of Attorney.
15.
PAN of the Partners.
16.
PAN of the Firm
17.
First Import bill.
18.
Stamps of the Firm
19.
Books of Accounts.
20.
Partnership Deed
Sale Tax Return
This return is submitted mandatory by every Register dealer with in a period of 30 days from the end of the each quarter. In this return every register dealer has to give details of sale and purchase (bill-wise and date wise), his total tax details i.e. whether tax is payable or refundable. If it is payable it should be paid before filing of sale tax return. With this return one has to attaché some annexure (the details of which is given in next page) and proof of tax deposit. Three are 4 returns in nos is to be submitted by every register dealer in a complete year.
Financial year
Our financial year starts from 1 st day of April to 31st March every year.
Quarter
As the financial year contains 12 months, there are four quarters.
From 1st April to 30th June
I Quarter
From 1st July to 30th Sept.
II Quarter
From 1st Oct.
III Q
31st D
Director: Mr. Bharat Mehta st
st
From 1 Jan. to 31 March
IV Quarter
Annexure Under VAT (Local Sale & Purchase): For Sale: There are different types of list of sale that is to be made out by registered dealer according to their sale picture:-
Sr.No. Description
List
01
Sale outside the State (Of goods purchased outside the state)
LS-1
02
Sale in the course of inter-State trade
LS-2
03
Sale in the course of import into India
LS-3
04
Sale in the course of export out of India
LS-4
05
Sale of exempted goods in the State
06
Sale of goods UNICEF,UNTAB,WHO,other prescribed UN bodies foreign missionLS-5
07
Value of goods sent for sale to local agents(VAT dealers)
LS-6
08
Value of goods exported out of State(Consignment transfers)
LS-7
09
Value of goods disposed of otherwise than by sale
LS-8
10
Value of taxable goods
LS-9
For Purchase: There are different types of list of Purchase that is to be made out by registered dealer according to their Purchase picture:-
Sr.No. Description
List
01
Purchased outside the State(for sale outside)
LP-1
02
Purchased in the course of export out of India
LP-2
03
Purchased in the course of inter –State trade
LP-3
04
Purchased in the course of import into India
LP-4
05
imported into State
LP-5
06
Received for sale from dealers regd.under VAT
LP-6
07
(1) Purchased from VAT dealers on tax invoice
LP-7
(2) Other purchase in the State
Central Sale Tax (CST)
Director: Mr. Bharat Mehta This is the tax, which is levied for sale made out of Haryana i.e from one state to other state. If one register dealer purchase from another register dealer goods out of state he is liable to pay tax at the rates mentioned in the Act, but if the register dealer making the purchase produce “C” form to the selling register dealer then he is only liable to pay concessional sale tax normally 4%. Return for the same is to be given on Form-I.
Sale Tax Adjustment:
Sale Tax Payable if [Sale Tax on Local Sale + Sale Tax on Central Sale] > Sale tax paid on Local Purchases
Sale Tax Refundable if [Sale Tax on Local Sale + Sale Tax on Central Sale] < Sale tax paid on Local Purchases
Sale tax is to be deposited through Challan, Demand Draft or Pay Order in the name of “Assessing Authority” . Further one has to attach a Challan Form also for the same.
Note: 1. There is no adjustment regarding tax paid on purchases made out of state till 31 st March, 2005. 2. If one is not interest to take the refund immediately, he can carried forward the refund amount in the next quarter and adjust the same against the tax payable for any succeeding quarter/ quarters. 3. There is no refund regarding the tax paid on fixed assets.
We can only make the adjustment regarding the sale tax paid on some specific assets which is require for the manufacturing of goods like machinery, Gen. Set.
4. There is penalty for not filing the sale tax return within time. 5. There is a penalty as well as Interest for not depositing the tax payable with in due time.
Director: Mr. Bharat Mehta
Trial Balance
Your Account Notes Day
-1
What is Account : Recording Business Transaction in a Systematic Manner so that we can find out our business our business profit or loss and our financial our financial position. position . Business: Business: To Carry on any activity on a regular basis to earn Profit. Systematic Manner : Presenting information in a meaningful order so that it is easy to read, understand and analyzed. Business Profit or Loss: Loss : Profit earned from business activities not from outside sources. Financial Position: Position: Capital Balance, Cash in hand, Dues, Loan Balance, Bank Balance, Assets Position What is Included in Activities: Activities : Sale-Purchase, Receipt-Payment, Profit-Loss Different Parties Involved in Business: Business : Owne Owners rs-DebtorsCreditorsBanks-
Prop Propri riet etor or or Part Partne nerr or or Sha Share re Hold Holder er To Whom Goods are sold From Whom Goods are purchased From Where we tak take Loan or Make Our Cheque Transaction.
What an Accountant Do: Do : Maintain books of Accounts in a proper manner so that we can find our debtor or creditors, capital of the owner, cash in hand and profit or loss of the firm till date.
Director: Mr. Bharat Mehta
Scope of Account : Book Writing, Balancing Ledgers, Find out Cash in hand, make a correct Trial Balance, Prepare Trading and Profit & Loss Account to ascertain the Profit or loss and at last finalizing the Balance Sheet. Terms mostly used in Book Keeping : Assets Liabilities Sale Purchase Expenses Income
: : : : : :
Machinery, Building, Furniture, Cash, Bank Balance Creditors, Ca Capital, Lo Loan Sale of Material, Sale of Finished Goods Purchase of of Ma Material, Pu Purchase of of Fi Finished Go Goods Rent, Salary, Wages, Telephone Exps, etc. Commission, Rent Recd., Interest Recd. Assets
Fixed Assets
Current Assets
Machinery Land & Building Furniture Car, Scooter Instruments
Cash Stock in hand Advances Debtors Bank Balance
Fixe Fixed d Asse Assets ts are are thos those e asse assets ts,, whic which h are are purc purcha hase sed d to run run the the business smoothly and remain fixed for a business. There is no sale or purchase of these items on a regular basis. Current Assets are those assets that are by their nature can be conv conve erted rted into nto cash cash with ith in a year year or from from thos those e cash cash can can be generated in a short period. Liabilities
Capital
Term Liabilities Secured Loans Unsecured Loans
Current Liabilities Creditors Expenses Payable
Director: Mr. Bharat Mehta
Day -2 Capital : Amount Deposit From Owner side. Capi Capital tal =
All All Ass Assets ets – Exte Externa rnall Liab Liabil ilit itie ies s
For Example suppose that the following balance appeared in the books of a firm: Cash Debtors
20000/40000/-
Machinery 50000/Creditors 30000/-
St o c k
Capital tal = All Assets – Extern terna al Liabilities All Assets = Cash+ Machinery+ Stock+ = 20000+ 50000+ 100000+ = 210000/External Liabilities = Creditors = 30000/Capital = 210000- 30000 = 180000/-
100000/-
Debtors 40000
Term Loan : Loan can be Short Term or Long Term. Short Term : For Less Than One year & this is called Current Liab. Long Term Term : For More More Than Than One One year Loan Can be Secured or Unsecured. Secured Loans : Against Security of Property, etc. Unsecured Loans: Without Security Current Liabilities: Liabilities that are to be paid with in a year i.e. payment to be made to Creditors, Payment to be made to workers, Rent payable, etc. Conclusion : From the above we can find out the conclusion that: Capital
= All Assets Or All Assets = Capital + Or Externa rnal Liab.= All Assets -
External Liab. External Liab. Capital.
Director: Mr. Bharat Mehta
Nature of Assets And Liabilities: All the Assets have Debit Balances All the Liabilities have Credit Balance All the Expense Should be Debited All the Incomes Should be Credited
If Assets Increase If Assets Decrease
: :
It Should be Debited It Should be Credited
If Liabilities Increase If Liabilities Decrease
: :
It Should be Credited It Should be Debited
: : : : : : : : : : : :
Furniture A/c – Debit Building A/c – Debit Cycle A/c – Credit Car A/c – Credit Purchase A/c – Debit Sale A/c - Credit Rent A/c – Debit Salary A/c – Debit Commission – Credit Interest Recd. A/c – Credit Rent Payable – Credit Salary Payable - Credit
Example: Furniture Purchased Construction of Building Cycle Sold Car Sold Goods Purchased Sale Made Rent Expenses Salary Expenses Commission Recd. Interest Recd. Rent Due, but not Paid Salary Due, but not Paid Balance Sheet: It is easier to understand the nature of assets and liabilities if we understand a Balance sheet Performa. A simple balance sheet is as:Balance Sheet Liabilities
Amount
Assets
Amount
Capital Creditors
180000 30000
Cash Machinery Stock Debtors
20000 50000 100000 40000
Total 210000
210000
Total
Director: Mr. Bharat Mehta
Example 1.
Gopal Started business with Rs. 75000 as Capital Assets = Liabilities
Cash 75000
=
+
Capital
+
75000
+ +
Capital 75000
+
75000
Liabilities 0
+ +
Capital 75000
0
+
75000
+
Capital
+ + +
75000 0 75000
+
Capital
+ + +
75000 3000 78000
0
2.
Gopal purchased furniture for Cash for Rs. 5000 Assets = Liabilities Cash + Furniture = 0 -5000 + 5000 70000 + 5000 = 0 3.
Goods purchased for Cash for Rs. 20000 Assets = Cash + Furniture + Stock = 70000 + 5000 + 0 -20000 + 0 + 20000 = 50000 + 5000 + 20000 = 4.
Gopal purchased goods on credit for Rs. 16000 Assets = Liabilities Cash + Furniture + Stock = Creditor 50000 + 5000 + 20000 = 0 0 + 0 + 16000 = +16000 50000 + 5000 + 36000 = 16000 5.
Goods costing of Rs. 12000 sold for Rs. 15000 Assets = Liabilities Cash + Furniture + Stock = Creditor 50000 + 5000 + 36000 = 16000 +15000 + -12000 = 0 65000 + 5000 + 24000 = 16000 6.
Goods costing of Rs. 12000 sold on Credit to Ram for Rs. 15000 Assets = Liabilities + Cash + Furniture + Stock + Debtors = Creditor 65000 + 5000 + 24000 = 16000 + 0 + 0 + -12000 + 15000 = 0 + 65000 + 5000 + 12000 + 15000 = 16000 + 7. Paid for 1000 for Rent Assets Cash + Furniture + Stock 65000 + 5000 + 12000 -1000 + 0 + 0 64000 + 5000 + 12000
+ + + +
= Liabilities Debtors = Creditor 15000 = 16000 0 = 0 15000 = 16000 Balance Sheet
Capital 78000 +3000 81000
+
Capital
+ + +
81000 -1000 80000
Liabilities
Amount
Assets
Amount
Capital Creditors
80000 16000
Cash Furniture Stock Debtors
64000 5000 12000 15000
Director: Mr. Bharat Mehta
For 1. 2. 3. 4. 5. 6. 7. 8. 9.
Home Work Mukesh started business with Cash. Purchased goods for Cash. Purchased goods on Credit. Purchased furniture for Cash Rent Paid Commission Recd. Withdraw Cash for personal use Sold goods on credit (Cost Rs. 30000) Paid to Creditors
80000 28000 20000 6000 2000 500 3000 40000 15000
Director: Mr. Bharat Mehta
Q2. 1. 2. 3. 4.
Started business with cash Rs. 50000 and goods Rs. 20000. brought goods for cash Rs. 15000 and on credit Rs. 10000 goods costing Rs. 24000 sold at a profit of 25%. Half of the payment received in cash. purchased furniture for office use Rs. 6000 and for household use Rs. 4000.
Hint. 1. Cash Stock Capital
Increase Increase Increase
50000 20000 70000
2.
Cash Stock Creditor (Liab.)
Decrease Increase Increase
15000 25000 10000
3.
Stock Capital (Profit) Cash Debtors
Decrease Increase Increase Increase
24000 6000 15000 15000
4.
Furniture Cash Capital
Increase Decrease Decrease
6000 10000 4000
Last Balances Cash Stock Debtors Furniture
Total
40000 21000 15000 6000
82000
Creditors Capital
10000 72000
Total
82000
Director: Mr. Bharat Mehta
Registration of Dealer:
Every businessman who wants to deal in taxable items and his expected sale for a year will exceed Rs. 500000.00, he is required to registered under VAT Act, 2003. Further if a businessman deals in taxable item and he wants to made any sale out of Haryana, he is liable for registration under VAT, nevertheless his sale doesn’t exceed Rs. 500000.00.
Documents Required for Registration in case of Proprietorship Unit:
1.
Application Form
2.
Court Fees Stamp for Registration Fees
3.
One Photo of Prop.
4.
2 Sureties (Gurantor-Who had already registered under VAT)
5.
One photo of each sureties.
6.
Sureties Bond
7.
Statement of Fact.
8.
Address proof of Prop i.e. Ration Card
9.
Identity proof of Prop. i.e Voter Card
10.
Map of the Site
11.
Rent Deed if Rented Property.
12.
Registry copy if Owned Property.
13.
Affidavit.
14.
Power of Attorney.
15.
PAN of the Proprietor.
16.
First Import bill.
17.
Stamps of the Firm
18.
Books of Accounts.
Documents Required for Registration in case of Proprietorship Unit:
1.
Application Form
2.
Court Fees Stamp for Registration Fees
3.
One Photo of each Partner.
4.
2 Sureties (Gurantor-Who had already registered under VAT)
5.
One photo of each sureties.
6
S
i
B
d
Director: Mr. Bharat Mehta 7.
Statement of Fact.
8.
Address proof of each Partners i.e. Ration Card
9.
Identity proof of each Partners. i.e Voter Card
10.
Map of the Site
11.
Rent Deed if Rented Property.
12.
Registry copy if Owned Property.
13.
Affidavit.
14.
Power of Attorney.
15.
PAN of the Partners.
16.
PAN of the Firm
17.
First Import bill.
18.
Stamps of the Firm
19.
Books of Accounts.
20.
Partnership Deed
Sale Tax Return
This return is submitted mandatory by every Register dealer with in a period of 30 days from the end of the each quarter. In this return every register dealer has to give details of sale and purchase (bill-wise and date wise), his total tax details i.e. whether tax is payable or refundable. If it is payable it should be paid before filing of sale tax return. With this return one has to attaché some annexure (the details of which is given in next page) and proof of tax deposit. Three are 4 returns in nos is to be submitted by every register dealer in a complete year.
Financial year
Our financial year starts from 1 st day of April to 31st March every year.
Quarter
As the financial year contains 12 months, there are four quarters.
From 1st April to 30th June
I Quarter
From 1st July to 30th Sept.
II Quarter
From 1st Oct.
III Q
31st D
Director: Mr. Bharat Mehta st
st
From 1 Jan. to 31 March
IV Quarter
Annexure Under VAT (Local Sale & Purchase): For Sale: There are different types of list of sale that is to be made out by registered dealer according to their sale picture:-
Sr.No. Description
List
01
Sale outside the State (Of goods purchased outside the state)
LS-1
02
Sale in the course of inter-State trade
LS-2
03
Sale in the course of import into India
LS-3
04
Sale in the course of export out of India
LS-4
05
Sale of exempted goods in the State
06
Sale of goods UNICEF,UNTAB,WHO,other prescribed UN bodies foreign missionLS-5
07
Value of goods sent for sale to local agents(VAT dealers)
LS-6
08
Value of goods exported out of State(Consignment transfers)
LS-7
09
Value of goods disposed of otherwise than by sale
LS-8
10
Value of taxable goods
LS-9
For Purchase: There are different types of list of Purchase that is to be made out by registered dealer according to their Purchase picture:-
Sr.No. Description
List
01
Purchased outside the State(for sale outside)
LP-1
02
Purchased in the course of export out of India
LP-2
03
Purchased in the course of inter –State trade
LP-3
04
Purchased in the course of import into India
LP-4
05
imported into State
LP-5
06
Received for sale from dealers regd.under VAT
LP-6
07
(1) Purchased from VAT dealers on tax invoice
LP-7
(2) Other purchase in the State
Central Sale Tax (CST)
Director: Mr. Bharat Mehta This is the tax, which is levied for sale made out of Haryana i.e from one state to other state. If one register dealer purchase from another register dealer goods out of state he is liable to pay tax at the rates mentioned in the Act, but if the register dealer making the purchase produce “C” form to the selling register dealer then he is only liable to pay concessional sale tax normally 4%. Return for the same is to be given on Form-I.
Sale Tax Adjustment:
Sale Tax Payable if [Sale Tax on Local Sale + Sale Tax on Central Sale] > Sale tax paid on Local Purchases
Sale Tax Refundable if [Sale Tax on Local Sale + Sale Tax on Central Sale] < Sale tax paid on Local Purchases
Sale tax is to be deposited through Challan, Demand Draft or Pay Order in the name of “Assessing Authority” . Further one has to attach a Challan Form also for the same.
Note: 1. There is no adjustment regarding tax paid on purchases made out of state till 31 st March, 2005. 2. If one is not interest to take the refund immediately, he can carried forward the refund amount in the next quarter and adjust the same against the tax payable for any succeeding quarter/ quarters. 3. There is no refund regarding the tax paid on fixed assets.
We can only make the adjustment regarding the sale tax paid on some specific assets which is require for the manufacturing of goods like machinery, Gen. Set.
4. There is penalty for not filing the sale tax return within time. 5. There is a penalty as well as Interest for not depositing the tax payable with in due time.
Director: Mr. Bharat Mehta
Trial Balance
