Query of Adjustment of CST and Tamilnadu VAT

I made a sale to other State charging CST. Now can that CST credit be adjusted against local VAT.

Rajarajan

Check your question once .

you are saying that u made a CST sale and then where comes the CST Credit.

are you saking that, whether CST payable can be adjused against VAT Credit in hand ?

if you question as above then, you can set-off the VAT credit against CST payable on CST sales, provided your VAT purchases and CST sales are from same state in case of multi-location company.

and if your question is that, whether CST paid on purchases can be adjusied against CST payable then the answer is "NO", CSt paid on purchases cannot be setoff against CST Payable.

for anything please revert back.

Hi Amit

As per ur clarification CST liability can be adjusted with input VAT?

or

Input credit can be adjusted with CST liability

whether both are same or different, if different pls explain with proper examples

Rajarajan

First one is true and

and only VAT paid on purchases are eligible for set off against CST liablity.

Hi Amit

1. Let for eg. I have input credit of Rs. 12,000 and CST liability Rs. 15,000. Are we liable to pay Rs. 3000 after adjusting?

and in reverse case of the above example, can v adjust ?

2. Local purchase is considered as VAT (Credit Input), if other State purchase what will be considered?

Rajarajan

You cannot avail input credit on CST Purchases .we have to issue C Form only if that item is covered in your certificate of registration.Only Local Purchases is eligible for input credit and vat setoff .CST AND  VAT are two seperate returns and one cannot setoff one liablity against another

Thank u Shivram

Rajarajan

Dear Shiv

What if I made a CST Sales made to another State. Shall I adjust the CST portion with local VAT   (input Credit) in Tamilnadu

Rajarajan

no you cannot

Ho, thanks shiv

Rajarajan