Dear Sir/Madam,
We do purchase chemical 'x' from a Mumbai supplier/importer with their MVAT invoice paid VAT 5%.
We want to sell this purchased chemical to our customer in other state (tamilnadu).
We issue our sales tax invoice to our tamilnadu customer with CST 2% against C-Form.
Can I claim the input tax credit that we paid to Mumbai supplier as VAT 5% ? Kindly advise.
Thanks & Regards,
JC Kumar
Mob: 0-9444566425
If such purchase is a local purchase for u (i.e. if u r also situated in MH), then u can offset VAT input credit against CST liability.
If any registered dealer issue cash memo to us with VAT can we take this VAT into our setoff.
sir
u can claim itc on local (mah.Vat ) Purchase @ 5% which u have paid as input credit provided if u are filing vat return in maharastra.
2. for raising the cst invoice @ 2% agaist form C to tamilnadu dealer for which u can adjust the cst due of 2 % agains the ITC taken from local purchase of chemical s in maharastra assuming u and the seller in case of local transaction, and buyer from tamil nadu are registered dealers.
with regards.
p,r,ganesh
yes u can take ITC provided that U are buying for either input of Rawmaterial for ur production in case of Mfg unit, and or buying for resale as a dealer in the state.
with regards
p.r.ganesh
CAclubindia
