Mvat adjustment against cst

This query is : Resolved

Alok mukherjee (Querist)
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19 February 2012 Dealer A in Maharashtra effected a sale to registered dealer B in MP. "A" has collected CST say Rs20000. A has paid Mvat on purchases for 8000. Can A adjust the Mvat credit of 8000 against the CST liability and deposit the diff. of 12000 into govt a/c?

Nishant

Nishant (Expert)
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20 February 2012 Yes, he can do it and pay off the net liabilty.

Dayal

Dayal (Expert)
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20 February 2012 ITC is first to be adjusted against VAT liability and any excess on hand can be then adjusted against CST.

Direct adjustment of CST before adjusting VAT liability may result in denial of adjustment, thereby drawing interest on amount short paid against CST.

If text of the act is required do let me know.

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