Set off of service tax credit for payment of VAT
This query is : Resolved
Jigar Mange
(Querist)
05 April 2009
Whether company can take set off of service tax credit against payment of local sales tax i.e VAT
Whether VAT credit is utilised for payment of Central Sales Tax
Whether VAT credit is utilised for payment of Central Sales Tax
05 April 2009
Credit of service tax cannot be utilised for payment of VAT or sales tax.
05 April 2009
Service tax set off against VAT is ruled out as both are different statute, one being cenral and other state
Service tax and Excise can be set off against each other, but agains subjec to conditions, please refer Cenvat Credit Rules.
Further Vat can be set off against CST liability, subject to provisions of the state.
Since you have not stated the state in which the transaction it is proposed, the said clarification cannot be awarded
However Maharashtra State allows such set off of CST against VAT
Service tax and Excise can be set off against each other, but agains subjec to conditions, please refer Cenvat Credit Rules.
Further Vat can be set off against CST liability, subject to provisions of the state.
Since you have not stated the state in which the transaction it is proposed, the said clarification cannot be awarded
However Maharashtra State allows such set off of CST against VAT
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