Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

can credit of CST b taken from VAT input?

indu gurjer (CA) (50 Points)

06 August 2008

whether from the VAT input credit available (under harayana VAT), Credit for duty payable under CST can be taken?

Plz rely urgently..

Thanks

Reply
Follow
Share

25 Replies

som kansal (chartered accountant) (307 Points)
Replied 06 August 2008

dear indu

there is no proceedure in the whole cst act for credit of cst paid

as there in vat act.

u cant take credit of cst paid against vat

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Sandeep (CA Final) (52 Points)
Replied 06 August 2008

Sorry sir, As I have knowledge of VAT, credit of VAT paid can be adjusted with CST but cedit of CST paid could not be adjusted with VAT under the HVAT Act, 2003.

CA Amit Kumar Khaitan (Research Analyst) (360 Points)
Replied 12 August 2008

no cst cant be set off at all....

cst act is one for the whole country.

indu gurjer (CA) (50 Points)
Replied 12 August 2008

dear all!

these views r all different,now i am not sure which one to go with. can plz anybody clarify this more and quote some section or circular etc..

Vineet Bansal (C.A. in Service) (36 Points)
Replied 13 August 2008

Originally posted by :indu gurjer

Dear Indu,

1.Under HVAT, 2003 we can take the credit of VAT paid on inputs/capital goods purchased. Now, this available input credit can be utilised to pay our VAT liability on the sales made within the Haryana(i.e. Local Sales). If our VAT liability on the sales made in the haryan(Local Sale) is less then the Input Credit available, then the balance Input Credit (balance after utilising for payment of VAT liability on local sale) can be utilised to pay our CST Liability.

2. we can not take the credit of CST paid on purchase of Inputs/Capital Goods.

Example:

VAT paid on Purchases = Rs. 100

CST Paid on Purchases = 50

Therefore, total input credit available = Rs. 100 only

Now, suppose VAt liability on sales made in Haryana = Rs. 50

CST liability on interstate sale = 500

Now out of total credit of Rs. 100 we can use 50 Rs. for payment of our VAT liability. Balance Rs. 50 can be utilise for the payment of our CST liability. Thus Rs. 450(500-50) for CST liability we will have to pay in cash.

Crux:

VAT paid on Purchases - We can take the credit and can utilise for payment of both VAT and CST

CST paid on Purchases - We can not take the credit.

Vineet Bansal

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

indu gurjer (CA) (50 Points)
Replied 13 August 2008

Mr. Vineet,

Thank u so much for the reply...

i have understood the situation now..

cud u share ur e-mail id plz..

regds-indu

MOHIT VATS (Project Controlling) (21 Points)
Replied 18 August 2008

Dear Mr. Vineet, I have go through with your example, could you plz explain the follwing situation:-

1. In case the enterprisesdidi not have any local sale & all the sale are on Central basis.. Now can we set off the same against VAT.

2. In case of any interest due to late payment, Can we set off the same through Credit available?

3. In your example you first set off the liability of VAT & not CST ? Is there any reason behind the same...

Thanks in Advance

Regards

MOHIT VATS

Originally posted by :Guest
"	Originally posted by :indu gurjer " Dear Indu, 1.Under HVAT, 2003 we can take the credit of VAT paid on inputs/capital goods purchased. Now, this available input credit can be utilised to pay our VAT liability on the sales made within the Haryana(i.e. Local Sales). If our VAT liability on the sales made in the haryan(Local Sale) is less then the Input Credit available, then the balance Input Credit (balance after utilising for payment of VAT liability on local sale) can be utilised to pay our CST Liability. 2. we can not take the credit of CST paid on purchase of Inputs/Capital Goods. Example: VAT paid on Purchases = Rs. 100 CST Paid on Purchases = 50 Therefore, total input credit available = Rs. 100 only Now, suppose VAt liability on sales made in Haryana = Rs. 50 CST liability on interstate sale = 500 Now out of total credit of Rs. 100 we can use 50 Rs. for payment of our VAT liability. Balance Rs. 50 can be utilise for the payment of our CST liability. Thus Rs. 450(500-50) for CST liability we will have to pay in cash. Crux: VAT paid on Purchases - We can take the credit and can utilise for payment of both VAT and CST CST paid on Purchases - We can not take the credit. Vineet Bansal "	"

(Guest)

can credit of CST b taken from U.P. VAT input

CA Ravish Trivedi (The Possibilities are Infinite...) (772 Points)
Replied 30 August 2008

Dear JP,

U cannot take credit of CST under UP vat input.The procedure for all states are same there is no link between CST and VAT.

Devinder Jain (Tax Practioner) (914 Points)
Replied 02 September 2008

Wether Local Vat or Central Sales Tax on all the sales made from a particular state goes to the Revenue of that very state.

The Vat paid on local purchases is the only Tax which a dealer can claim as input tax credit available to that particular dealer. The input tax credit can be adjusted against Out put Tax, first against the local Vat liability, and if any surplus credit is available the same can be adjusted against the liability under the Central Sales Tax Act.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Ravish Trivedi (The Possibilities are Infinite...) (772 Points)
Replied 02 September 2008

dear Devinder There is no link between CST and VAT . Excess input can not be adjustable from CST and vice versa.

(Guest)

Entry Tax Input Cradit of U.P.Vat

Rohit Khare (student) (111 Points)
Replied 07 October 2008

Dear All,

Se off of CST paid onpurchases can not ba claimed against any other tax liability. However as far as my knowledge goes, set off of input vat can be claimed against CST liability.