Dear All,
Let me know that I can take Setoff of 5% CST Purchase against Local Sales.
Regards
8 Replies
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 05 November 2011
no one cannot claim credit of inter state purchase as per VAT rules,ya u cn claim cerdit of intra state purchase against you CST liability bt not vice versa
so u cannot claim credit of outside purchases
REGARDS
SRIPAL JAIN
SANYAM ARORA
(“It's hard to beat a person who never gives up.”)
(20173 Points)
Replied 05 November 2011
| Originally posted by : ashish gupta | ||
 |
I agree with CA Sripal Jain |
 |
Rahul Sharma
(----------)
(8192 Points)
Replied 05 November 2011
| Originally posted by : SANYAM ARORA | ||
|
|
Originally posted by : ashish gupta I agree with CA Sripal Jain |
|
(Guest)
Not possible to set-off CST paid against VAT payable. Why?
CST is not VATable. in other words, CST paid on purchases are not allowed to be set off against the VAT credit on sales. This is so because CST paid on purchases is retained by the State (say, Haryana) from where goods are purchased. So when the other State (Delhi) which is charging VAT on sale will be at loss of revenue (i.e. tax revenue) if it allows the set off of CST paid on purchases (to Haryana).
Therefore, only local purchases (i.e. intra-State purchases) are allowed to take credit for the purposes of VAT payable.
Just sharing some details in brief.
SANDEEP KUMAR GUPTA
(Manager)
(23 Points)
Replied 10 November 2011
yes, I agree with both of them, Actually the CST in the subject of Central Government and VAT is the subject of respective state Government and govern accordingly with the Union list and State list of the Constitution,
Thanx,
sandeep gupta
Anand Kumar Tiwari
(Chartered Accountant)
(23 Points)
Replied 11 November 2011
Input can be claim only against vat purchase (On Basis of Tax Invoice).
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