Pratik (Accountant) (48 Points)
24 October 2013If a product is sold under CST @ 2% and the for the same was made under VAT @ 14.5%, Can we claim the Input Credit against such CST sales?
Eg: If product A is sold for Rs. 1000/- then the tax liability under CST @ 2 % would be Rs. 20; if this product was purchased for Rs. 1000/- under VAT @ 14.5% then the VAT input credit would be Rs. 145/-
Can We claim a refund for Rs. 125 (Output: 20 less Input: 145)?
P.S: Assumed Purchase & Sales Rate as the same for easy understanding
CA Subhash Bhaskar
(Practicing CA)
(291 Points)
Replied 25 October 2013
yes u can adjust the VAT input against cst liability but not vice-versa
Anoop
(Service)
(345 Points)
Replied 25 October 2013
Agreed with Subhash but for which state you are talking?
CA Ankit Mittal
(Charterd Accountant)
(118 Points)
Replied 25 October 2013
YEs you can take the credit of VAT input to discharge the CST liability
And also you can apply for the refund of balance Input Credit
But you can not take credit of the CST paid if you purchase outside from the state. CST on purchase has to be paid in cash but CST on sales can be adjusted from the Input VAT
Hope this helps
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 26 October 2013
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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