thanks for reply me ........
but my problem is if input tax credit is given in the following cases:
1. Local Sales tax (VAT) is adjusted by the Local Tax (VAT paid at the time of Purchase ) (Same Govt.)
2. Central Sales Tax (CST) is also adjusted by the Local Tax (VAT paid at the time of Purchase) (Different Govt)
why input tax credit on inter state purchase (Central Purchase) is not adjusted with the tax on Central & Local Sales??
- if you recall memory then CST is reduced from 4 to 3 and now 2 percent, and with implementation of GST in due course it would go ZERO, so question of CST payment would go outdated in due time, so input credit will remain zero, its the process of rationatiosation of state vat and cst. the time frame set is working and in coming years CST would be only notional for most of commodities,
- CST act and input credit is very different and its not possible to any state govt to pass on the CST to target state, as it will take loads of paper work and data transfer for allowing credit, hence making CST zero is a reasonable step taken by state govt's steering comitee, which is likely to get implemented by 01-04-2012.
What they (Govt) thought input tax credit on inter state purchase is not given to the dealer at the time of introduction of VAT......???
- if govt allow CST credit to buying dealer, then imagine the situation, in cross checking of dealers invoice, the target govt VAT office has to transfer whole cheking system to originating state vat office. which would be long time process, and dealer would suffer a lot.
is there any problem to give input tax credit on inter state purchase ?????
- Wait for GST implementation, with notification of GST such abnormalities will go disappeared.