Set off of service tax credit for payment of VAT

This query is : Resolved

Jigar Mange (Querist)
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05 April 2009 Whether company can take set off of service tax credit against payment of local sales tax i.e VAT

Whether VAT credit is utilised for payment of Central Sales Tax

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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05 April 2009 Credit of service tax cannot be utilised for payment of VAT or sales tax.

Dayal

Dayal (Expert)
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05 April 2009 Service tax set off against VAT is ruled out as both are different statute, one being cenral and other state

Service tax and Excise can be set off against each other, but agains subjec to conditions, please refer Cenvat Credit Rules.

Further Vat can be set off against CST liability, subject to provisions of the state.

Since you have not stated the state in which the transaction it is proposed, the said clarification cannot be awarded

However Maharashtra State allows such set off of CST against VAT

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