Whether Input Credit can be availed on interstate purchases?
8 Replies
NISHANT SINGH
(senior accountant)
(57 Points)
Replied 23 June 2012
No credit available on interstate purchase.
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 23 June 2012
Under current VAT Act, not allowed. Under GST regime, it is permitted, as per the white paper.
rengaraj r.k
KRISHNAPRASAD IYER
(B.Com , CA Final)
(657 Points)
Replied 23 June 2012
Under VAT Act, inpu credit can be availed only on intra-state purchases
chandra
(student)
(528 Points)
Replied 24 June 2012
Sales Tax revenue is collected and retained by the Govt of state in which seller does business.
In case of CST Sales Tax revenue is collected from seller in one state and the state govt in which purchaser residing would not allow the credit for tax collected by other states.
In case of VAT, seller and purchaser are residing in the same state, so the state govt will collect VAT from seller and allow purchaser to take its credit
Anbuselvam
(CMA Final Pursuing)
(240 Points)
Replied 25 June 2012
What is Input Credit - VAT paid on purchases made locally (Intra-State). This VAT will be finally reach to local state Govt.
What is Interstate purchase- CST paid on purchases made outside the state (Inter-State) This CST will be finallly reach to that State only and not to local state Govt. Hence ITC cannot be availed on Interstate purchases
Nitil Kr. Agarwala
(Persuing CS)
(264 Points)
Replied 25 June 2012
Not Input VAT Credit is not allowable on Purchase made outside the state. Its covers only Intra-state purchase.
Tony John
(Chartered Accountant)
(6085 Points)
Replied 25 June 2012
Credit cannnot be availed on Inter-state purchases under VAT rules.
nbasavaraj
(Auditor)
(22 Points)
Replied 26 June 2012
Dear Mr.Ramachandra Reddy,
There no provision neither in Central Sales Tax Act nor in State VAT Act for availing input credit on CST.
Basavaraj
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