16 June 2008
Dear Sir! We are having huge balance in our "VAT CREDIT RECEIVABLE ACCOUNT". Same time we are having huge liability against our service tax payable account. Can it be setoff? Please confirm. gajendra gajendrac@solectron.com
Cenvat for service tax is governed by CENVAT Credit Rules 2004 whereas Cenvat for Vat is governed by various state VAT laws.They are altogether different legislatures.
Hence, VAT credit cannot be utilized for the payment of any service tax liability.
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