26 January 2014
Dear experts 1. Whether CENVAT (Excise) and central sales tax are same? I mean excise duty is impose on production of goods and CST like VAT imposed on sales of goods from one state to other state i.e. interstate sales. I am also confused with credit available from input to output duty. I am drawing my confusion with different conditions in examples for having the pleasure of your understanding of my doubt as: 2. A ltd. of Delhi purchase raw material D for production of material E. it has paid excise duty rs.5000 charge by supplier on material D. And A ltd have to pay excise duty rs.8000 on material E. so 5000 less 8000 = 3000 tax liability have to pay by company? 3. Whether A ltd in addition of excise duty have to pay CST, if it sale goods to outside state i.e. inter sales. & if so than excise duty input and excise duty output with CST can set off? 4. Whether A ltd in addition of excise duty have to pay VAT, if it sale goods within the state i.e. intra sales? 5. If A ltd. of Delhi purchase raw material D from trader (Gujarat) for producing material E. while trader( Gujarat) purchase raw material D from B ltd( Punjab) on which it paid input excise duty rs 5000. Now trader (Gujarat) charge rs 9000 (rs 5000 excise duty paid by him to B ltd. & rs 4000 CST) from A ltd. And A ltd have to pay excise duty of material E rs 18000. Whether A ltd can claim CENVAT credit as 9000 less 18000 = 9000 tax liability? 6. A ltd sales material D to trader F & charge rs.8000 excise duty. Now if trader F sales goods to trader G of Bangalore (inter sales) & charge CST rs 10000 than. Whether trader F can claim credit as 8000 less 10000 = 2000 tax liability? Dear sir/madam now you can imagine the nature of my doubt which relates to CENVAT (excise duty) & CST imposition and credit claim. I am referring indirect tax book of author V.S. datey. Please explain the above doubts.
CAclubindia
