Input tax credit claim

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