Total vat purchase total cst sale

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Prasad Shah

Managing Partner

41 Points Posted on 14 December 2012

Dear Sir,

We are running a SME in Salem,Tamilnadu.

We have close to Rs.1.5 Crore purchase every month, which is totally domestic purchase within our State @ 5%. So total VAT amount is close to Rs.750000, we pay every month to our vendors.

While our Sales is 80% in India to other states and 20% Exports, we have nil sales in our state Tamilnadu.

So while selling in India, say for our monthly turn over, we have about Rs.1.6 Crores of Local Sales against 2% CST, so we get Rs.320000 from CST income approx, while for Export, it's a tax free sale.

So we have huge VAT Input Credit with us, which we cannot do anything with that rather than just adjustment.

Our Input VAT Credit worth Rs.48 Lakhs expired this financial year, which was older than 36 months, this is an unnecessarily huge loss to our company.

Please give us any solution that, is there any way to recover this Input VAT Credit Refund by Cash or Cheque from Sales Tax Dept on Quaterly or yearly basis??

Look forward to hear you soon.

Best Regards,

P.S.

CEO

Replies (3)

CA Lukesh Sethi

CHARTERED ACCOUNTANT

121 Points Posted on 15 December 2012

Dear Sir,

You have made export and CST sale and you have deposited the CST collected from customers. You can claim refund of purchase input tax credit. Please get assessment of sales tax of all three years and claim refund of your tax. As in filing of sales tax returns you are carrying forwarding your sales tax to next year.

But on completion of assessment of three years, you can get refund from sales tax department. There will be no issue in this regard.

Regds

Harshal Fifadra

Chartered Accountant

1249 Points Posted on 16 December 2012

Dear prasad you have no local vat liability ... You have large amount of itc which can be adjusted against your cst liability ... Ok ....

sankar

Manager in Rank Silicon And Industries P

49 Points Posted on 18 December 2012

The input tax credit can be adjusted against CST liability and if any input tax credit remains it can be claimed as refund. but this can be possible after completion of both CST and VAT assessments.