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input tax credit

Preeti (9971144895) (Article) (100 Points)

19 April 2010

Dear Sir,

Our H.O in Gurgaon, and one branch is in Silvassa (Dadra and Haveli), Silvassa Branch purchases local @ 4% same item and import the same item also. Silvassa branch sales local @ 4% and central sales, stock transfer. Now we have claimed input vat credit @ 4% against vat of imported goods. Can we claim input vat credit against vat output of imported goods, CST @ 2%, or Stock Transfer. Please solve my query according to Silvassa Sales Tax Act.

Thanx & Warm Regards

Preeti

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6 Replies

CA.TAPAS DALAR (CHARTERED ACCOUNTANT) (130 Points)
Replied 19 April 2010

And what's the query?????

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Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14497 Points)
Replied 19 April 2010

Input vat can claim only in that state.

Brance transfer against form F (No sales Tax applicable) so input credit question dose not arise.

Imported goods sold on vat/cst should be deposit to department. so input question dose not arise

CA. Mithilesh kr. Singh (PROFESSIONAL ) (45 Points)
Replied 19 April 2010

SINCE IMPORTED GOODS ARE EXEMPTED FROM VAT SO YOU CAN'T CLAIM CREDIT OVER IMPORTED GOODS

CA. Mithilesh kr. Singh (PROFESSIONAL ) (45 Points)
Replied 19 April 2010

YOU CAN GET CREDIT OF VAT PAID WITHIN THE SAME STATE ONLY.

CA Nikhil Baheti (CA) (27 Points)
Replied 20 April 2010

Hi Preeti,

In your query i found two elements or points of tax which can be utilised in the following manner.

1. Your branch in Silvasa has purchased locally some goods on which input VAT has been paid which you can utilise against VAT output payable to the Govt.

2. You have also imported the same matereial on which you will be paying a Duty equalent to Local Sales Tax i.e., in your case it will be VAT @ 4%, this duty is called Spl CVD(Counter Veiling Duty) which can be availed as CENVAT Cr. and not as Input Tax Cr. Therefore you cannot avail it against your VAT liability or CST laibility. However, you can utilise Spl CVD against the Excise Duty Payable or Service Tax Payable as the case may be.

Hope i took your query correctly and the above given information will help you out.

Nikhil Baheti