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Simple query plz help

Hemali (cs professional student) (72 Points)

29 October 2013

why cst is added in output vat n nt in input vat

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5 Replies

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 29 October 2013

CST liability lies with the state where from goods are sold, that is why cst is added to output vat.As goods sold to other state,that other state will not give you credit of cst as seller were not paid cst liability to purchasing state

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VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 29 October 2013

Simply becoz in cst same state not involve in both sale purchase transaction unlikr vat where both transaction happened within same state.

Hemali (cs professional student) (72 Points)
Replied 30 October 2013

thank u... so much Fr solving d query it ws d Oli thing which I ws nt able to understand

CA Pallav Singhania (IT System Auditor) (33262 Points)
Replied 30 October 2013

If CST is charged on purchase then it will be part oi the cost of the goods,

Only VAT credit on purchase is allowed to be set off...

On the other hand, VAT and CST charged on sale, becomes VAT and CST liability which can be set off against VAT credit {Vat paid at the time of purchase}

Ruchi Agrawal (Accounts Executive) (29 Points)
Replied 30 October 2013

output vat is applicable on sales and input vat on purchase......cst is central sales tax....thats' why it is added in output vat and not in input vat