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VAT Input tax credit

4138 views 8 replies

Dear All

i am working in cement industry and our organisation exemption entitlement of VAT so we are exempt to pay our vat liability and claim refund of VAT paid on purchase . further we also have granted  DFIA Licence against the same we can import material and tax on the same will be reduced from the DFIA licence amount , but now we have sold the DFIA license to another party ( part ) and charged CST on the same , so now my question is this ki can we take credit of or regular input tax on purchase against the CST on sale of DFIA license .

 

Pls advice

Regard

Praveen Sen

 

Replies (8)

CST payable can  be adjusted with the input credit of VAT.

vibash is right........

i dont think so. VAT credit cannot be adjusted CST output tax.

Vibhash is Right. You can adjust CST payable against Input Tax Credit available. 

yes,, we can avail the input vat credit available against CST payable...

Dear Friends

As you will be awaire of the Fact the Input Credit on Purchase can only be utilised against output tax on goods sold  it may be CST also , but in my question the output CST is on sale of Right ( DFIA licence ) which is not a regular product of our business. so how can we take credit of the input  tax on material purchased which is ulitimately not  involved (used )in above mentioned sale ( licence sale ) , so aparentely it seems that we can not take our regular input tax credit against the CST on sale of right (licence sale).

i think now u will got this issue more precisely .

pls comment on the same.

Regards

Praveen Sen

 

 

 

 

which state?

1. In maharashtra you can definately adjust VAT Refund due to Input taxes against CST payable, whatever may be the reson for CST liablity.

You can adjust CST payable with Input credit


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