vat credit

This query is : Resolved

B Vijaya (Querist)
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31 January 2009 A company providing lab services liable to service tax, for the purpose it uses consumables on which VAT is levied and paid. Could such company take a setoff of vat paid agst service tax payable

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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31 January 2009 No vat payment cannot be allowed to set off against service tax.

Service tax is payable to central government under indirect taxes.

Whereas vat is payable to concerned state.

That is why set off is not possible.

B Vijaya

B Vijaya (Querist)
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03 February 2009 Thank you for the raply

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