24 December 2009
As per Act, we cannot setoff tax paid on Interstate purchases, instead we hav to add it to inventory value. But during VAT audit we observed that one of our client has setoff the same against output tax payable. And he argues we can setoff CST paid on purchases against tax payable.
Note: The client is located in Bangalore,Karnataka
25 December 2009
In karnataka , Tax paid on Inter state purchase cannot be claimed as ITC, as per section 10(2) input tax means the tax collected or payable UNDER THIS ACT (i.e. Karanatka VAT Act) thus tax paid on CST Act cannot be claimed as ITC
25 December 2009
Dealer where ever can located, as per CST act there is no provision for input credit paid against purchases in course of interstate. in 100% EOU, a dealer can claim for the refund of CST paid by him against his purchases, but cann't claim & set off the input credit.
CAclubindia
