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Cst disallowance

Madhavi (Practice) (80 Points)

11 February 2013

Plz anyone guide me in deriving CSt disallowance ratio

If my 4%purchases for the quarter is Rs457343(Basic) and OGS to Total sales ration is 0.684

Then how much tax credit to be disallowed...

Thanx

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2 Replies

Anandan (HOD accounts) (502 Points)
Replied 11 February 2013

Your query is not clear. Can you elaborate more.

Any cst tax paid (whether @ 12.5% or what ever state tax is applicable or procured via C-form) during out of state purchase, the cst tax paid cannot be adjusted against any of your sales tax liablity. For Eg : If you have sold goods worth Rs.200 @ 2% cst (you will receive C-form from the party - for total invoice i.e Rs.104/-), you will have to pay CST of Rs.4/ vide cst payment challan to your vat department.

Hope the concept is clear.

Regards

Anandan.s

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Madhavi (Practice) (80 Points)
Replied 13 February 2013

Thanx for reply ,

But my question is different ...what m asking is that Total Amt of Purchase is Rs 457343/- and it is 4% taxable purchase and amongst this purchases OGS sales ratio is 0.684....

Plz guide me to disallow this 2% cst credit ....