VAT input claim on interstate sales - Karnataka

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This query is : Resolved

Renuka Prasad.R (Querist)

14 September 2009 Hi,

Kindly solove the below illustration

1. Opening Stock zero
2. Local Purchase 100 quantities @ Rs. 10000, Rs.400 input tax
3. Local Sales of 50 quantities @ Rs. 5500, Rs. 220 Output tax
4. Interstate Sales of 50 quantities @ Rs. 5500, Rs. 220 Output tax
5. Total Input tax - Rs. 400, total tax collected - Rs. 440

what is the amount to be paid to Karnataka government?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

14 September 2009 CSt can not be adjusted with VAT so your net liability woudl be 220 i.e. cst . youc an have reserve credit of 400-220=180.

Renuka Prasad.R

Renuka Prasad.R (Querist)

14 September 2009 dont we need to write off the same?

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)

22 September 2009 It is surprising that in Karnataka CST is not adjustable against VAT ITC. I think the same should be reconfirmed. In a similar caes Patna High Court had suggested Bihar Govt to make such provisions.

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