Adjustment of CST against VAT

you cannot adjust CST paid against ur Vat liability. But CST paid is added to the cost. however both CST and VAT paid is allowable under Income Tax

CST paid on purchase can't be adjusted against output Vat. However input VAT can be adjusted against CST collected on Sales.

Im agree with  Ashish and Neetu.CST Paid on purchase can not be  adjusted with Output VAT.

CSt paid on interstate purchases cannot be adjusted for the payment of vat. but however if you are also purchasing within the state then excess vat input remaining unutilised can be adjusted for the payment of CST . But Credit of cst cannot be taken for the payment of vat , there is no other alernative available , you cannot take input credit on cst .

no it could not be adjusted       

hi frndz.......... ive a small doubt..

Can input taxcredit (VAT) be used for payment of CST....?

Originally posted by : Nitu Agarwal
	CST paid on purchase can't be adjusted against output Vat. However input VAT can be adjusted against CST collected on Sales.

Agree.

i agree with above views, the logic behind this is,

CST is collected by the centre and remitted to the state.

if u pay cst to other state (say maharashtra) and claim vat against cst of your state ( say orissa).

in this case it is a loss of revenue to the orissa state.

so it cannot adjusted the revenue of one state to revenue of other state. 

Yes I agree with above views cst paid on purchase cant be adjusted against Vat

cst and input tax credit can only be adjusted if both are paid/payable to treasury of same government.

Examples-

(1) if purchased from other state and sold to same state- Cant be adjusted as because CSt is paid to that otehr state and vat is payable to domestic state

(2) Purchase made from own state and sold outside-  since input vat and cst is paid to same govt. ie. own government. CST can be adjusted with input VAT paid.

 (3) If purchased and sold in own state-  VAt payable can be adjusted withh input vat

(4) if purchased from other state and sold to oter state (whether sold to purchasing state or not)- CSt payable cant be adjusted with CSt paid to own government.

Since cst and vat paid are deductable expense under income tax act, one may get releif of income tax on these expense

Ya i agree with Mr.Rajnikant, what he said the reason is absolutely right.

Ms.Alekhya,

for u r query also same answer, but reverse can b possible

C..S.T can't be adjusted against VAT Out put as per Sales Tax Act .But you can avoid VAT pymt.by doing 6(2) -Sales in Transit transaction wherin you have to give 'C"form to supplier & obtain E1 form from the suppliers

if you would like to know more abount the 6(2) pl.send query in CA CLUB INDIA

Tarun

No C.S.T CAN'T be adjusted against Vat.