Vat & cst refunds!

This query is : Resolved

vinodh (Querist)
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29 March 2012 Hi Sir,

I have an query regarding CST and VAT(Tamil nadu), Well i buy goods from seller with paid VAT tax with regard to that while i sale the same product to the customer i need to pay Full VAT again or i need to pay difference amount only.

And another thing while i sale goods to other state i charge CST and paid to sales tax well i get any refunds from that paid tax without C Form.

Hope all your favour.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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29 March 2012 You will have to pay collect full amount of VAT/CST but you can get input tax credit of the tax paid on purchase.
When you sale the goods to outside state, you can set off of the VAt paid while purchasing the goods against such CST liability.
But if you have paid CST while purchasing the goods then nop set off will be allowed, you will have to pay full amount of tax on sale without any set off.

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Mihir Doshi

Mihir Doshi (Expert)
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29 March 2012 In Short, No CST Credit will be available while you purchase the goods from other State.

While selling goods, interstate, you can set off the VAT payable against CST paid.

Correct me, if I am wrong

Thanks
Mihir Doshi

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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29 March 2012 Dear Mihir,

In nutshell,

CST Credit can not be set off against VAT/CST but VAT credit can be set off against VAT and CST both.