VAT / CST on DEPB
This query is : Resolved
Rahul Mittal
(Querist)
23 March 2009
We intend to clear our custom duty obligations through DEPB.
Whether DEPBs are subject to VAT or CST? If yes, what are the prescriber rates?
Can VAT paid for DEPB be used as input credit?
Whether DEPBs are subject to VAT or CST? If yes, what are the prescriber rates?
Can VAT paid for DEPB be used as input credit?
CA. B.SRINIVASULU
(Expert)
23 March 2009
When you are importing the goods vat or cst will not come. Beacause these are applicable when sale is made. When you import it will be treated as purchase from out of country and therefore vat or cst is not applicable. However certain states will charge entry tax and that paid entry tax can be adjsusted against vat if you sell in the same state and if you sell out of state you can claim refund of entry tax.
When you are importing the goods vat or cst will not come. Beacause these are applicable when sale is made. When you import it will be treated as purchase from out of country and therefore vat or cst is not applicable. However certain states will charge entry tax and that paid entry tax can be adjsusted against vat if you sell in the same state and if you sell out of state you can claim refund of entry tax.
BeyondConsultants
(Expert)
30 March 2009
Are you planning to buy DEPB licenses from market?
Please clarify
Nikhil
Beyond Consultants
beyondconsultants@ymail.com
Please clarify
Nikhil
Beyond Consultants
beyondconsultants@ymail.com
Rahul Mittal
(Querist)
30 March 2009
Yes. We are buying DEPB license from market regularly.
Abuzar Azmi
(Expert)
20 November 2009
If you are buying DEPB licence from the market you have to pay CST/VAT as applicable to u on each purchse.
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