Set off of vat with service tax

1098 views 5 replies

Dear Professional Colleagues,

Guys My company is charging DVAT on Automobile Products like Fuel Tanks, Whiper, Dashboard , Transmission Cover Etc @ 12.5%.

 

& The Company is paying  "SERVICE TAX " on certain products.

 

CAN THE COMPANY TAKE CREDIT OF SERVICE TAX AGAINST VAT Liability.

Kindly refer the Notification/Order no. if Any

 

 

Thanks in Advance

CA. Anshul Bajaj

9971267993

Replies (5)

No, According to my openinon, becoz both the taxes has different juridiction, one is diverted to state and other to central goverment.

anshul,

 

there is no provsion under DVAT rules and neither there is any notification allowing credit of service tax paid on products to be used as ITC against VAT liability.

 

Further, as NItin said, it cant be possible as service tax under central government powers and  DVAT is under state government.Thats why in absence of any specific rules or notification allowing such set off , IYC of service tax against DVAT liability cannot be allowed.

 

Thanks and regards,

 

Manoj B. gavali

No Scope...........

There is no provision to take credit of service tax to set off VAT liability

Neither input ST paid is permissible for set off against output VAT, nor input VAT paid is permissible for set off against output ST. Its a straight expense/loss for you under such situations.

 However, this difficulty would vanish once GST is implemented.


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