Shruthi (PCC Student) (111 Points)
06 July 2011Act simply says CST Liability can be set off against VAT Input Credit available in excess after setting off the VAT Liability.
But i've doubt whether CST liability can be set off only from VAT Input on Raw materials or it can also get set off from VAT Input on Capital goods??
RAJU
(LEARNER)
(1089 Points)
Replied 06 July 2011
Hi,
I am not aware in which State you are based....
However, in Karnataka, tax paid on capital goods is covered within the definition of INPUT TAX.
ashish gupta
( student)
(1922 Points)
Replied 06 July 2011
yes it depends upon the State VAT. and once Input credit is allwed it can be utilised to pay CST or VAT both. means if input credit is allwed on capital goods then CST liability can also be utilised with that.
CAclubindia
