Tamilnadu vat and cst

sssvkSridharan R. (CA (Final) Salem. Tamilnadu. sssvksridhar@yahoo.co.in)   (218 Points)

24 March 2012  

Against C form

 

Mr. A, of Tamilnadu, purchased goods of Rs. 5725 which includes VAT of Rs. 725 from Tamilnadu.

Mr. A. Sold the above goods to Mr. B of Karnataka for Rs. 5100 which includes CST of Rs. 100 (against C form) – Now A is liable to pay CST of Rs. 100 collected from Mr. B.

Can Mr. A set off the ITC of Rs. 725 against the CST liability of Rs. 100?

 

Without C form

Mr. A, of Tamilnadu, purchased goods of Rs. 5725 which includes VAT of Rs. 725 from Tamilnadu.

Mr. A. Sold the above goods to Mr. B of Karnataka for Rs. 5725 which includes CST of Rs. 725 (without C form) – Now A is liable to pay CST of Rs. 725 collected from Mr. B.

Can Mr. A set off the ITC of Rs. 725 against the CST liability of Rs. 725?