Adjustment of input tax credit with cst

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kaliki. vikesh reddy

student

38 Points Posted on 12 December 2014

Hi,

can any one explain about adjestment of cst sales with input tax credit witha an example i.e supose i have opening input tax credit i made sales with in the state with applicable rates and outside the state with c- form and without c-form then how can i adjust this cst sale tax with input tax credit????

Replies (7)

Rohan

Audit Manager

76 Points Posted on 12 December 2014

Input tax credit first set off with within state sales tax , after remain balance can be setoff with cst ( out of state sales tax).

kaliki. vikesh reddy

student

38 Points Posted on 12 December 2014

WE CAN ADJUST CST SALES WITHOUT C-FORM WITH INPUT TAX CREDIT? IF YES PLS ILLUSTRATE WITH AN EXAMPLE AND FORMULA FOR THE SAME

Gopal Gupta

CHARTERED ACCOUNTANT

31 Points Posted on 12 December 2014

Yes. ITC can be adjusted with cut.

Rohan

Audit Manager

76 Points Posted on 12 December 2014

State pur (12.5%) 1 lac vat 12500 Out state pur (2%) 1 lac cst 2000 State sale (12.5%) 0.5 lac vat 6250 Outside state sale (2%) 1 lac cst 2000 Setoff = 12500-6250-2000=4250 RS 4250 will be carry forward and c form for 102000 should issued to supplier and c form of 102000 to be taken from customer

satish

teaching

1168 Points Posted on 13 December 2014

Local vat rate is 10% Cst is 2% Local purchase is rs. 1,00,000/- Local sales is rs. 80,000/- Inter state sale rs. 20,000/- with c form Inter state sale rs. 30,000/- without c form. Input vat credit is rs. 10,000/- Out put vat rs. 8,000/- Cst on sale with c form rs. 400/- Cst on sale without c form rs. 3,000/- Finally after adjustment liability in the hands of trader is rs. 1,400/-