Vat query

Dear shobhit

cst is levied on inter state sales..

as per the cst rules , cst cannot be deducted from Input tax credit........

However in case if the input tax credit = 100 and vat payable on sales made = 90 and cst = 20

so 

u have a refund ( excess input tax credit ) of Rs.10 ( 100 - 90 ) which can be utilised to set off the cst liability ... so net cst liability = 10

( 20 - 10)

cst payable can be adjusted against input tax credit only when there is excess input tax credit 

( refund )

Ok.....

Pls go thru this link and download VAT file frm there:

/share_files/complete-note-on-vat-prepared-by-abhinandan-jain-35186.asp#.UI-YK2e_RFA