CST set off

VAT (Legacy) 11170 views 11 replies

Sheetal

CA Final Student

74 Points Posted on 09 January 2008

Hi!

I want to ask that whether CST paid on interstate purchase can be set off against tax liability on interstate sale in state of Maharastra
If yes, then mention Section.

Thanks in advance!

Replies (11)

CA. O.P. Agarwalla

C.A.

2916 Points Posted on 09 January 2008

If u want to ask that whether CST paid on interstate purchase can be set off against tax liability on resale:- There is no any concept of input credit for CST Paid. If I failed to understand your question properly, please rearrange the question and pl. dont forget to mention the name of State.

Ca Ramakrishna Sangu

employment

39 Points Posted on 10 January 2008

cst paid under the cst act can be set off againist excess input tax credit available under the vat act on the other hand as our friend mentioned the cst paid oon interstate purchases can not be utilised on cst payable on cst sales as there is no Input tax credit concept under the CST act

CA. O.P. Agarwalla

C.A.

2916 Points Posted on 12 January 2008

Mr. Sangu, I could not understand the following para:- "cst paid under the cst act can be set off againist excess input tax credit available under the vat act" Will u please explain?

Manish

Service

61 Points Posted on 15 January 2008

Mr Sangyu appears to have wrongly answered the question...or he has misinterpreted the Section

shumayala

Chartered Accountant

33 Points Posted on 17 January 2008

There is no concept of input credit of CST in the ACT.But yes, excess tax credit under vat of that state can be adjusted from the CST liability,For eg IF Out put VAT is 100 and input VAT is 120 than 20 can be adjusted from the CST liability.Thats what Mr Sanghu wants to convey in his messege.

Guest

460555 Points Posted on 31 July 2008

Originally posted by :CA. O.P. Agarwalla
"	If u want to ask that whether CST paid on interstate purchase can be set off against tax liability on resale:- There is no any concept of input credit for CST Paid. If I failed to understand your question properly, please rearrange the question and pl. dont forget to mention the name of State.	"

As far as I know CST payment on purchase can be used as input credit for VAT. But VAT paid on purchase cannot be used as input credit for CST.

Guest

460555 Points Posted on 31 July 2008

Originally posted by :CA. O.P. Agarwalla
"	If u want to ask that whether CST paid on interstate purchase can be set off against tax liability on resale:- There is no any concept of input credit for CST Paid. If I failed to understand your question properly, please rearrange the question and pl. dont forget to mention the name of State.	"

or is it the other way around?

Guest

460555 Points Posted on 31 July 2008

If you look at the monthly VAT 100 form for Karnataka you will see that you have to add VAT sales and CST sales to arrive at the total tax liability. But you can take only VAT purchases (no space provided for CST purchases) as input credit. Tax payable = tax liability - input credit.

VAT payment on local purchases CAN be used as input credit for CST liability on Sales. And CST payment on local purchase CANNOT be utilized as input credit for VAT liability on Sales.

Originally posted by :CA. O.P. Agarwalla
"	If u want to ask that whether CST paid on interstate purchase can be set off against tax liability on resale:- There is no any concept of input credit for CST Paid. If I failed to understand your question properly, please rearrange the question and pl. dont forget to mention the name of State.	"

Swapnil

Employee

20 Points Posted on 08 December 2008

We have purchased the material from the local vendor under MVAT and on our behalf supplied by the vendor in Gujarat State. How we can claim the inpur credit if we bill:

1. From Maharashtra to Gujrat under CST

2. From Gujarat under GVAT

Num Sharma

Accounts Manager

21 Points Posted on 18 October 2010

Dear All,

i want to know ........ at MAHARASHTRA

if we have Excess MVAT Credit for the Q -july to sept 10 by Rs. 100/-

& we have payable CST for Rs. 500/-

CAN WE ADJUSTE THE MVAT ......

& PAID THE CST BY RS. 400/-..

Please reply...........

waiting for your reply........

Thanx & Regards,

N P Sharma

Sundeep

Partner

21 Points Posted on 18 June 2012

MY QUESTION IS.

I AM A REGISTERED DEALER IN ANDHRA PRADESH, I HAVE BOUGHT MATERIAL IN RAJASTHAN STATE WHERE THE PARTY IS CHARGING ME, BASIC + CST @ 5% AS THEY HAVE A PROJECT OFFICE IN INDIA & CANNOT MAKE A SALE INVOICE, THOUGH THEY HAVE A VAT REGISTRATION NO.IN RAJASTHAN.

THE SAME MATERIAL I AM SELLING TO ANOTHER PARTY IN RAJASTHAN WHICH AGAIN HAS A PROJECT OFFICE IN INDIA BUT NOT YET REGISTERED IN RAJASTHAN FOR VAT, I AM SELLING AT BASIC + PROFIT + 5%CST.

PLEASE SUGGEST HOW DO I DO THE BILLING, HOW IS THE TRANSACTION TO TAKE PLACE AS THERE IS NO PHYSICAL MOVEMENT OF GOODS, AS I HAVE SOLD THE MATERIAL TO MY PURCHASER DIRECTLY FROM MY BUYERS WAREHOUSE.

WOULD APPRECIATE SUGGESTIONS.