VAT

Hi,

My firm is reqistered in bangalore, and I am purchasing some equipments from one private limited company in bangalore and i am going to resell the same to another organization in hyderabad against to C form. what is the tax rate i should pay while purchasing? can i claim that vat back or not?

Replies (5)

Dear Sir,

As per the provision of the Input Tax Credit rule,If both CST and VAT are paid to same Bangalore Govt the assesse are eligibe to first adjust the VAT amount with the CST payable.

So, CST collected at the time of sale can be adjusted with VAT paid on purchase on equipment before making the payment of CST.

Thanks and Regards,

PINTOO KUMAR GUPTA

Dear Pintoo, I think we can't set off VAT input credit against CST output Tax liability. Please refer KVAT act once again.

Dear Sir,

 as per the Vat act Input Vat Credit on Purchase is adjusted with CST for example purcahse 1000/- Input credit on purchase @ 4% Rs.40/- now the time of sales we sold the item out of state sales 2000/- cst on sales Rs.40/- @ 2% . The CST is adujust with Input Credti & the Final tax payble is NIL

Dear Bhaskar Sir,

The vat paid on purchase of the capital goods can be adjusted with the CST payable, provided that the CAPITAL GOODS MUST BE USED DIRECTLY FOR MANUFACTURING PURPOSE.

So Pavan Ji,

If you have used that capital goods for manufacturing purpose then you are eligible to claim credit.

Thanks and Regards

yes we can adjust input vat cerdit with output cst at the time of sales

yes your tax liability is nil

athar khan

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