10 August 2009
Dear All Iam accounting a propritery manufacturing company (SSI)the firm purchase raw material & sale finish goods.The diff in sale & purchase tax is paid as vat.
the firm has purchase a machinery can the propriter take setoff on vat paid on machinery.
The Firm purchase oil for machinery if i account oil as direct expenses can the vat paid on oil be clamed.
the firm purchase rawmaterial from Interstate can the CST paid on purchase adjusted against vat payable.
10 August 2009
yes, input vat paid on local purchases can be adjusted against out put vat on sales for both local sales & interstate sales. the vat paid on capital goods on plant & machinery the credit available is 1/3rd for the current year of purchase and balance 2/3rd for next 2 years set off equally. as against cst paid on interestate purchase credit is not available.
CAclubindia
