24 June 2010
If material is bought by paying vat(rs.25) & the same is utilised in providing services & the service bill raised is as below: material 1000 mvat 40 services 2000 serv. tax 10.3%
Can a set off be claimed O/P vat 40 less I/P vat 25 & balance deposited by 21st? Or for claiming set-off one has to be a pure trader ie doesnot provide service.
26 June 2010
for availing input credit, you must not the end user, and both the selling and puchasing parties must registered under state vat. since you are purchasing some material for using the same in execution of any work contract.i think you can set off the input tax credit against your output tax liablity.
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