credit of VAT

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This query is : Resolved

CA.Aakhilesh (Querist)

27 May 2008 Hi Nilesh Damji,

can be set off VAT paid on centralised purchasing with VAT payable on sales by various sales depot in various state?

We have a head office at DELHI and all purchase i.e. raw material and packing material through head office and transfer to manufacturing unit in other state and thereafter finished good t/fd to sales depot in other states.

Vat paid on such purchases can be set off against vat payable on sales by such sales depot in various states.

CA. Vineet Grover

CA. Vineet Grover (Expert)

27 May 2008 Hi Akhilesh,

You cannot take central sales tax benefit against your central purchase tax.

Set off not permissable.

But you make set off state sales against state purchase.

Rgds/
Vineet

Nilesh Damji Chheda

Nilesh Damji Chheda (Expert)

27 May 2008 hi akhilesh
i could'nt understand ur querry for solution u have to state the procedure u follow for transfer of goods in the state from which u make sale. in case of state of maharashtra if u purchase goods and transfer it to ur sales depot in other state then there is reduction in set off of vat on paurchase further u have to pay the full tax at the local rate of state in which u make sale. i hope the above will help u to some extent. in case of u have any further querry u can also mail me at ndchheda@rediffmail.com

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