CST & TAX Account

samblue600

Hi Experts,

In State table in Sales Tax Setup , I find two fields, Tax Account(sales) & CST Account (Sales), I could not understand the use of these fields.

Does it mean that if I select Tax Type as CST in Tax Jurisdiction table, CST will get posted to CST Account (Sales) and If select VAT it will get posted to TAX account (Sales) :!:

ssingla

Yes

samblue600

Ho!! Thanks Singla,

But why the same is not given for Purchase, How will the purchase CST and VAT amount will get posted to separate account bit :?

reema

samblue600 wrote:

But why the same is not given for Purchase, How will the purchase CST and VAT amount will get posted to separate account bit :?

First thing is better to learn the Basic concepts.

When it comes to Purchases if it Vat purches , then it will post to separate Account what u define in state form.

When it comes to CST purchases that doesnot post to any account , that cst amount will load on Inventory .( you cannot take it as Vat credit)