CST

Hi All


as per according to my knowledge, suppose i m dealer and dealing in Inter State Sale/Purchase and Local Sale/Purchase. I can not get back or adjust the INPUT TAX or OUTPUT TAX on  inter state sale but can adjust the INPUT & OUTPUT TAX in LOCAL Sale only with each other.


means whatever tax i gave  on the inter state purchase i can not get refund of that. its gone. so my querry is ;- is am right ? or whatever the fundas in that inter state sale or purchase ? actually i want littlebit conceptual clarity & what are the adjustments on that.


i hope u guys understant what i am trying to say.


Thx

Replies (4)
Mr. Ajay, You are right. Dealers can not avail tax benefit (as ITC) on payment of CST. State Govt.
Dear Ajay 1.Input tax paid on CST purchase will not be eligible for tax credit. 2. input tax credit on local purchases on local purchase available for set off both local as well as cental tax. hope now you are clear
[2006] 148 STC 0306- - Neo Carbon Pvt. Limited Vs. State of Bihar and another United Paper Board Vs. State of Bihar and another (Patna) The petitioners who purchased goods on payment of tax as provided under section 14 of the Bihar Value Added Tax Act, 2005 read with Schedule III of the Act and consumed such goods in the manufacture of other goods sold in the course of inter-State trade and commerce, filed writ petitions claiming adjustment of their Central sales tax liabilities against the input tax credit accruing to them on the basis of taxes paid on the purchase of raw materials as provided under section 16 of the Bihar Value Added Tax Act, 2005: Held, dismissing the petition, that the Bihar Value Added Tax Act, 2005 and the Bihar Value Added Tax Rules, 2005 as such do not permit adjustment of Central sales tax payable by the dealer against input tax credit. [The court observed that the State of Bihar, would be well advised to incorporate provisions for such adjustment like a number of other States in conformity with object and purpose of the value added tax law.]

What is the consequence of non-submission of C-Form when the sale is made from the  state of Gujarat? Will the Tax be charged Flat @  10% or  the local VAT rate which is 5% (4%+1%) on the item will be applicable?

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