out put vat but input cst(very urjent)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 June 2010 sir in my friends client company,
they are purchased from other state and paying cenvat and the company sales those goods to local customers and they are collecting vat and total amt paid to local government.
ex: purchase cost 25000
cen vat 5000
30000(25000+5000) paid to the company of other state.and they are collect 34350(30000*14.5%+30000) from customer and total 4350 paid to local government .wether this treatment is correct or not.

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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02 June 2010 Please clarify whether you have paid excise duty or CST for purchase from outside state.

1) If it is CST. You cannot claim the input CST against the VAT liability. (CST liability can be set off against the excess set off of VAT).

2) If it is Central Excise duty, You cannot claim the CENVAT Credit against VAT Liability.