Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Query of Adjustment of CST and Tamilnadu VAT

Rajarajan (AO) (272 Points)

31 October 2009

I made a sale to other State charging CST. Now can that CST credit be adjusted against local VAT.

Rajarajan

Reply
Follow
Share

15 Replies

Amit Ingale (Student CA Final) (1454 Points)
Replied 31 October 2009

Check your question once .

you are saying that u made a CST sale and then where comes the CST Credit.

are you saking that, whether CST payable can be adjused against VAT Credit in hand ?

if you question as above then, you can set-off the VAT credit against CST payable on CST sales, provided your VAT purchases and CST sales are from same state in case of multi-location company.

and if your question is that, whether CST paid on purchases can be adjusied against CST payable then the answer is "NO", CSt paid on purchases cannot be setoff against CST Payable.

for anything please revert back.

Upgrade to CAclubindia Pro. Subscribe Now!

Rajarajan (AO) (272 Points)
Replied 31 October 2009

Hi Amit

As per ur clarification CST liability can be adjusted with input VAT?

Input credit can be adjusted with CST liability

whether both are same or different, if different pls explain with proper examples

Rajarajan

Amit Ingale (Student CA Final) (1454 Points)
Replied 31 October 2009

Originally posted by :Rajarajan
"	Hi Amit As per ur clarification CST liability can be adjusted with input VAT? or Input credit can be adjusted with CST liability whether both are same or different, if different pls explain with proper examples Rajarajan	"

First one is true and

and only VAT paid on purchases are eligible for set off against CST liablity.

Rajarajan (AO) (272 Points)
Replied 31 October 2009

Hi Amit

1. Let for eg. I have input credit of Rs. 12,000 and CST liability Rs. 15,000. Are we liable to pay Rs. 3000 after adjusting?

and in reverse case of the above example, can v adjust ?

2. Local purchase is considered as VAT (Credit Input), if other State purchase what will be considered?

Rajarajan

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 31 October 2009

You cannot avail input credit on CST Purchases .we have to issue C Form only if that item is covered in your certificate of registration.Only Local Purchases is eligible for input credit and vat setoff .CST AND VAT are two seperate returns and one cannot setoff one liablity against another

Upgrade to CAclubindia Pro. Subscribe Now!

Rajarajan (AO) (272 Points)
Replied 31 October 2009

Thank u Shivram

Rajarajan

Rajarajan (AO) (272 Points)
Replied 31 October 2009

Originally posted by :sivaram
"	You cannot avail input credit on CST Purchases .we have to issue C Form only if that item is covered in your certificate of registration.Only Local Purchases is eligible for input credit and vat setoff .CST AND VAT are two seperate returns and one cannot setoff one liablity against another	"

Dear Shiv

What if I made a CST Sales made to another State. Shall I adjust the CST portion with local VAT (input Credit) in Tamilnadu

Rajarajan

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 31 October 2009

no you cannot

Rajarajan (AO) (272 Points)
Replied 31 October 2009

Ho, thanks shiv

Rajarajan

Athma Ranjan (service) (66 Points)
Replied 31 October 2009

Originally posted by :Rajarajan
"	Originally posted by :sivaram " You cannot avail input credit on CST Purchases .we have to issue C Form only if that item is covered in your certificate of registration.Only Local Purchases is eligible for input credit and vat setoff .CST AND VAT are two seperate returns and one cannot setoff one liablity against another " Dear Shiv What if I made a CST Sales made to another State. Shall I adjust the CST portion with local VAT (input Credit) in Tamilnadu Rajarajan	"

Do not get confused.

1. VAT input credit can be taken only for the purchases made within the state (eg.Tamilnadu).

2. Now out of the VAT credit you have, you can adjust against your VAT payment and also against CST payment. If the credit is not enough, you have to make balance payment.

3. Both VAT and CST are controlled by the state government.

I think the matter is very simple.

Upgrade to CAclubindia Pro. Subscribe Now!

Shankar Sharma (Accounts Exec. - Fresher) (85 Points)
Replied 02 December 2009

I made a sale to other State charging VAT. is this legal or accountable, as the party not able to issue me a cform

Athma Ranjan (service) (66 Points)
Replied 02 December 2009

Originally posted by :Shankar Sharma
"	I made a sale to other State charging VAT. is this legal or accountable, as the party not able to issue me a cform	"

Your transaction is correct and accountable if you have charged the tax

as per the VAT rate in your state.

S.Jegadeesan (CA Student) (637 Points)
Replied 12 January 2010

if the seller charged the local tax of his state.Can i take Input Credit on purchase from otherstate?

ex; Mr.A ( Regd under Tamil Nadu VAT Act.2006) purchase a goods from Andhra for Rs.10000 with local tax (VAT)of Andhra for Rs.400. Can Mr.A take it as Input Credit?

S.Jegadeesan.