Query on Karnataka VAT and CST

16959 views 35 replies

Anil

1638 Points Joined October 2007

Karnataka VAT ( K-VAT) and CST

Please note that all below questions pertain to Karnataka VAT

1) Is it possible to claim set off of VAT paid on all items (including stationary, Furniture etc) bought by the company against VAT collected on all sales (i.e. sale of trading items)? If not what is the criteria for setting off?

2) For setting off should the % VAT be same? For example: An item is bought on which of VAT % is say 20%. If the items of the company is sold on which VAT % is say 4% can set off be claimed?

3) At present what are the rates of VAT prevailing?

4) Can VAT be set off against CST?

5) Is set off allowed under CST Act like it is in VAT Act? In other words can CST paid be set off against CST collected?

6) Are any registers to be maintained statutorily under VAT and CST Act?

7) In whose favour cheques are to be drawn for payment of: a) VAT b) CST.

8) Can one issue just one cheque for payment of both VAT and CST payable during a

month?

9) Can cheque be paid along with VAT / CST return?

10) Are export sales exempt from Sales Tax?

10a) what is the difference between Tax invoice and Bill of Sale?

11) Are there any challans to be filled up for payment of VAT /CST?

12) Can payment of VAT / CST be made in banks instead of paying to the department

directly?

Please answer questionwise. Thanks .

Replies (35)

suresh

Cost Accountant

33 Points Joined December 2007

You can take credit on stationery which is used for generating sale bills, you cannot take credit on furniture. If you are dealer in stationery and furniture you can take credit

4) Can VAT be set off against CST?

Yes you can set of VAT input tax against payment of CST

5) Is set off allowed under CST Act like it is in VAT Act? In other words can CST paid be set off against CST collected?

there is no provision in CST Act to set off CST paid on inputs against CST payable. and also you cannot take credit of CST paid of procuring of Raw materials

6) Are any registers to be maintained statutorily under VAT and CST Act?

Yes you have to maintain Purchase Register, Sales register, VAT account and stock ledgers. theses are registers to be maintained under VAT and CST act.

7) In whose favour cheques are to be drawn for payment of: a) VAT b) CST.

cheques should be infavour of Local VAT office ie LVO, in which your firm got registered under VAT and CST ACT

8) Can one issue just one cheque for payment of both VAT and CST payable during a month?

Yes, you can issue a single cheque for both VAT and CST payable during a month

9) Can cheque be paid along with VAT / CST return?

You have to enclose cheque along with your VAT return and you should submit the return within 20th day of next month.

10) Are export sales exempt from Sales Tax?

Yes all direct exports are exempt from sales tax.

10a) what is the difference between Tax invoice and Bill of Sale?

Tax Invoice is used in sale of taxable sales within the state.

Bill of sale is used in case of you are making sale of exempted goods and you are making sale of interstate.

11) Are there any challans to be filled up for payment of VAT /CST?

Yes, You have to fill a Form 152 challan for making payment and also you can make payment in to bank instead of submitting to the LVO

2) For setting off should the % VAT be same? For example: An item is bought on which of VAT % is say 20%. If the items of the company is sold on which VAT % is say 4% can set off be claimed?

you can set off the vat credit amount, the only condition is you should use the raw materials in manufacturing of the product.

3) At present what are the rates of VAT prevailing?

At present there are 3 tax slabs

1%, 4% and 12.5% vat rates are prevaling

Guest

439030 Points Joined August 2012

srinivas

employee

22 Points Joined July 2008

IS vat applicable on sale of capital assets?

Guest

439030 Points Joined August 2012

Can i view my last year total VAT returns

Sathish k

Partner

116 Points Joined December 2007

Answers for your questions :

Q. 1. Set off is possible on trading items. If you are dealer in items like stationery etc. you can set off the same.

Q2. There is no particular criteria with regards to setoff of VAT. you can set off VAT payable against input VAT. there is no restriction on rate of VAT.

Q3. Prevailing Rates of VAT 0%, 1%, 4%, 12.5%, 20%

Q4. VAT cannot be set off against CST.

Q5. Set off is not allowed in CST. Can claim input on CST purchase if it is above a specified rate. Earlier it is 10%.

Q6. Registers to be maintained with regards to issue of Statutory forms.

Q7. Cheques to be issued in favour of LVO...... for both VAT & CST

Q8. No.

Q9. refer ans. to Q7.

Q10. Yes, Under CST Export is exempt from tax.

Q10a. Bill of sale is issued against services rendered where VAT/CST is not chargeable.

Q12 There is a provision to make payment of taxes through banks. (Specified banks). but it is suggested to file your return directly to office of the Commercial Tax Department alongwith the cheque towards payment of taxes.

regards

sathish.

Guest

439030 Points Joined August 2012

Dear Sirs,

We are selling VATABLE Item in Gujarat and outside Gujarat State.

In Gujarat our Product is under 4% VAT + 1% Additional VAT w.e.f. 01/04/2008.

But what about CST Rate - What Rate without C/H Form we should take from our Customers ?

CST - 5% or 4%

Regards

lokesh

self employed

0 Points Joined July 2008

Originally posted by :Guest
"	Can i view my last year total VAT returns	"

lokesh

self employed

0 Points Joined July 2008

dear sir , what is rate of % in karnataka for selling soft drinks & food in bar & restruent

Guest

439030 Points Joined August 2012

Dear Sir/Madam,

My company Tin No. is 29190054761 what is our CST No.

Guest

439030 Points Joined August 2012

DEAR SIE PLEASE SEND ME FORM NO 3 ( B ) SEE RULE- 5

UNDER SECTION 1970 , CENTER SALES TAX ( GUJARAT ) RULES

Ashwinkumar.K.Kulkarni

Acccounts officer

20 Points Joined September 2008

What is VAT rate applicable to Quartz in Karnataka?

Guest

439030 Points Joined August 2012

Originally posted by :Anil
"	Karnataka VAT ( K-VAT) and CST Please note that all below questions pertain to Karnataka VAT 1) Is it possible to claim set off of VAT paid on all items (including stationary, Furniture etc) bought by the company against VAT collected on all sales (i.e. sale of trading items)? If not what is the criteria for setting off? 2) For setting off should the % VAT be same? For example: An item is bought on which of VAT % is say 20%. If the items of the company is sold on which VAT % is say 4% can set off be claimed? 3) At present what are the rates of VAT prevailing? 4) Can VAT be set off against CST? 5) Is set off allowed under CST Act like it is in VAT Act? In other words can CST paid be set off against CST collected? 6) Are any registers to be maintained statutorily under VAT and CST Act? 7) In whose favour cheques are to be drawn for payment of: a) VAT b) CST. 8) Can one issue just one cheque for payment of both VAT and CST payable during a month? 9) Can cheque be paid along with VAT / CST return? 10) Are export sales exempt from Sales Tax? 10a) what is the difference between Tax invoice and Bill of Sale? 11) Are there any challans to be filled up for payment of VAT /CST? 12) Can payment of VAT / CST be made in banks instead of paying to the department directly? Please answer questionwise. Thanks .	"

Guest

439030 Points Joined August 2012

We are 100% eou company, we sold some goods to another EOU company and we received EOU declaration. I want to know H Form necessary for this. If so in what notification/circular please