Input Vat Credit in Tamil Nadu

As per my knowledge, we can not adjust VAT input credit against CST tax liabity.

Dear Sir...

I do think.....CST cannot be adjusted against the Input Vat Credit...

Input Vat to be adjusted with Output Vat first, if not then it can adjusted with CST.

Dear Somaas,

 

"Input Vat to be adjusted with Output Vat first, if not then it can adjusted with CST."

 

In VAT act not such provision and i think you reply with reference to service tax credit rule. According to service tax credit rules, you can adjust excess of service tax input credit, you can adjust with excise duty. The said rule not appliable to VAT.

Please review your point.

Yes... i do agree with Baskar sir....

Input Vat credit cannot be adjusted against CST....

Dear Sadhique

ITC can be adjusted in CST. I have done it many times. There is a provision in e return i.e "payment adjustment"  in that u can fill the ITC to be adjusted against CST. 

Refund can also be claimed for the balance after the adjustment

Dear Mr.Obied,

Payment adjustment field defined for any excess payment made eariler period or any sales return CST adjustment, not for Input credit adjustment.

In CST act, no provision to adjust input credit adjustment. Please once again review your point.

Dear Mr.Baskar,

ITC is only in VAT act and not in CST as you have mentioned. What am I telling is that we can adjust the excess ITC available for the payment of CST instead of claiming refund. Payment adjustment details includes amount adjusted towards tax payable in Form 1 (CST)

Excess ITC can be adjusted.

Dear Raja,

Can you provide respective act section details for my reference.

Under TNVATRules 2007 please refer 10-10(b).

Further, Please go through the VAT monthly Return Coloum B for your Reference. 

Dear Sadiqque as per TNVAT Rules you can adjust the Input provide the said dealer is Registered under the CST ACT and C forms must be produced. Below is the Rules.

 

(9) (a) Input tax credit on inter-state sales shall be allowed only if Form C prescribed in the Central Sales

Tax (Registration and Turnover) Rules, 1957 is filed.

(b) Input tax credit on transfer of goods falling under section 6-A of the Central Sales Tax Act, 1956

shall be allowed only if Form F prescribed in the Central Sales Tax (Registration and Turnover) Rules, 1957 is filed

Input Vat credit can be adjusted against CST payable (i.e CST collected from customers) (As per TN VAT) The Logic behind is, The amount of CST you have collected is remitted to Tamil Nadu government. At the same time Vat on purchase is also remitted to Tamil Nadu government. Hence CST on sales is eligible for Input VAT credit. Otherwise if credit not allowed it leads to double payment of Tax. Moreover, in VAT monthly return itself there is question that "How much you have adjusted against CST payble" However CST paid on purchases cannot be taken as Input credit as output vat. The reason is CST paid amount will go to other state government but vat collected is to be remitted to TN government. Hope this information will be useful. TANQ....