Query of Adjustment of CST and Tamilnadu VAT

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.

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.

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

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

Thank u Shivram

Rajarajan

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

no you cannot

Ho, thanks shiv

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.

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.

 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.

hi we can adjust local purchase input with cst liablity means if we are purchase in our state  and seling outside the state difference will be paid

but we cant  take input of interstate purchase