Setoff

It will not be set off.

The input of CST cannot be set off with VAT Output !!

agree with apoorva

VAT credit on purchases can be used for discharging CST liabilty.

But there is no CST credit on purhcases.

You can fully setoff VAT credit on purchases for discharging CST liability.

I think question is wrongly read by apporva and Radhekrishna

Regards

Dayananda

dayanand  is fully correct.

Tax paid on local purchase can be fully adjusted towards your CST liability.

But there is a requirement of TAX INVOICE.

Originally posted by : DAYANANDA K N
	VAT credit on purchases can be used for discharging CST liabilty. But there is no CST credit on purhcases. You can fully setoff VAT credit on purchases for discharging CST liability. I think question is wrongly read by apporva and Radhekrishna Regards Dayananda

agreed....so sorry !!

Originally posted by : pramod
	when a particular business is having  local purchases and only CST sale than whether setoff of the vat paid is available against the CST payment. if available than whether part or full or in any percentage form.

CST liability can be paid through VAT credit accumulated on local purchase,

Fact file of the case :

Business  unit is having local purchases as well as CST sale.

Issue of the case :

Whether VAT paid on local purchases can be set off against the CST payment on CST sale.

If available whether part or full or in any percentage form.

Analysis of the case :

VAT paid on local purchases is  refundable tax and VAT Rules allow set off against the liability of Sales tas

payment to be made against CST sale.

VAT credit is available in full.

Conclusion:

To sum up VAT paid on local purchases can be set off against sales tax liability against a CST sale

VAT credit is available in full.

Expert opinion is welcome

Can any one pls. send me the document evidence for the above to  rameshnfl @ gmail.com