29 January 2009
VAT is a state levy and Service tax is a central levy. Under CENVAT credit mechanism only set off is available for service tax and excise duty. There is no set off mechanism for input VAT against service tax payable.
29 January 2009
Service tax is a central levy and VAT is a state levy. The CENVAT credit mechanism is available for Service tax and Excise duty. It does not inlcude the VAT. Therefore the input VAT cannot be adjusted against the service tax payable
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