Normally we take 2% out of 5% as VAT input credit and the Balance 3% is taken as our cost as per the latest amendment dated 11th November 2013 of TN VAT Act.
This month we have an excess VAT Input after adjustment of VAT liability to the extent of Rs.45 K.
Our CST liability is Rs. 1.92 lakh payable (5%). Normally we adjust the excess vat after adjusting vat liability to the CST Liability.
Now the CTO have told us not the adjust the excess VAT against CST liability and demanding to pay the full CST liability. Also he is asking to adjust the excess VAT liability against the VAT for next month.
Kindly advice whether the VAT excess input can be adjusted against CST liability or else we have to go as per CTO.
CAclubindia
