VAT input claim on interstate sales - Karnataka

This query is : Resolved

Renuka Prasad.R (Querist)
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14 September 2009 Hi,

Kindly solove the below illustration

1. Opening Stock zero
2. Local Purchase 100 quantities @ Rs. 10000, Rs.400 input tax
3. Local Sales of 50 quantities @ Rs. 5500, Rs. 220 Output tax
4. Interstate Sales of 50 quantities @ Rs. 5500, Rs. 220 Output tax
5. Total Input tax - Rs. 400, total tax collected - Rs. 440

what is the amount to be paid to Karnataka government?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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14 September 2009 CSt can not be adjusted with VAT so your net liability woudl be 220 i.e. cst . youc an have reserve credit of 400-220=180.

Renuka Prasad.R

Renuka Prasad.R (Querist)
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14 September 2009 dont we need to write off the same?

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CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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22 September 2009 It is surprising that in Karnataka CST is not adjustable against VAT ITC. I think the same should be reconfirmed. In a similar caes Patna High Court had suggested Bihar Govt to make such provisions.