CMA.Baskar.V (Cost Accountant) (400 Points)
06 June 2011Hi,
Please confirm below logic ok for VAT input credit adjustment for CST output tax
VAT Purchase (Input Tax) - CST Sales (Output Tax) - Can Adjust with input tax Credit
CST Purchase (Input Tax) - VAT Sales (Output Tax) - input tax can not be adjust against with out tax
Thank you
Nizzu
(.)
(34 Points)
Replied 06 June 2011
Yes, you are correct. VAT input tax can be adjusted against VAT/CST output tax liability, where as the tax paid on CST purchase (2% some cases with out C forms rate may be different) can not be adjusted against the against VAT/CST output tax liability
CA Vibhash Kumar Sah
(Associate Manager)
(710 Points)
Replied 08 June 2011
| Originally posted by : CMA.Baskar.V | ||
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Hi, Please confirm below logic ok for VAT input credit adjustment for CST output tax VAT Purchase (Input Tax) - CST Sales (Output Tax) - Can Adjust with input tax Credit CST Purchase (Input Tax) - VAT Sales (Output Tax) - input tax can not be adjust against with out tax Thank you |
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CST has a cascading effect. No Input Credit is available for CST paid. Conseqiuently there is no question of adjusting the same with the VAT or CST Liability. However, Input Credit for VAT is avaialble suject to conditions mentioned in different States VAT Act. Once it is eligible to take VAT Input Credit, the same can be adjusted with VAT or CST ouput Tax liabillity.
ashish gupta
( student)
(1922 Points)
Replied 11 June 2011
simple logic is though CST is Central Sales Tax but it is the revenue of State government. thats why of you pay CST on purchases the revenue goes into the pocket of that state government from where you puchased the goods.
And Output Vat is paid to State government which will not allow the creddit of CST paid to other state. On the other hand if you deposit the CST on outside sales to your State Government you can get benefit of Input Vat paid by you.
ashish gupta
( student)
(1922 Points)
Replied 11 June 2011
simple logic is though CST is Central Sales Tax but it is the revenue of State government. thats why of you pay CST on purchases the revenue goes into the pocket of that state government from where you puchased the goods.
And Output Vat is paid to State government which will not allow the creddit of CST paid to other state. On the other hand if you deposit the CST on outside sales to your State Government you can get benefit of Input Vat paid by you.
atanukar2010@gmail.com
(Executive Commercial )
(24 Points)
Replied 25 November 2011
Hi,
Can you Help
CAN CST BE PAYABLE OUT OF INPUT TAX ?
WHAT IS WORK IN PROGRESS?
Regards,
Atanu
pawan
(cd)
(21 Points)
Replied 28 December 2011
is it necessary that total input credit should be higer than total output vat and output cst through out the month.
shanmugam
(Finance Professional)
(22 Points)
Replied 11 September 2012
Hi, i am N.shanmugam working in a private company
my question is we are taking input credit from local purchases (TN) sales made to TN as well as other states, we are adjusting local sales tax with the input credit , also adjusting the cst sales tax against form 'C". ....... sales made to other states without "C" form ie... 14.5% tax presently, the realed ITC also we have reversed . the excess ITC available with us was adjused with the cst 14.5% sales tax, Now the CTO wanted to pay the tax amount of inter state sales @ 14.5% by cheque payment. u/s 19(5) c . can any one explain in this with proper expalantion and examples cotting the section also
thanks and regards
shanmugam
shanmugam
(Finance Professional)
(22 Points)
Replied 23 September 2012
Purchase (TN) 100000 @ 5% - 5000
Purchase(TN) 50000 @ 14.5%- 7250
Total Input vat credit - 12250
Sales(TN) 40000 @ 5% - 2000
Sales(TN) 30000 @ 14.5% -4350
Sales to other state 35000 @ 2% against c form - 700
Sales to othr state 25000 @ 14.5% - 3625
Total ITC available - 12250-1094 = 11156
VAT Payable -6350
CST payable (700+3625)= 4325
Reversal of credit - 12250 x 25000/280000 = 1094
Input tax credit available = 11156
Less: adjustment (6350+4325) = 10675
Input tax credit carrief forward to next month Rs.481-00
Shanmugam
Hi
please check and give your suggessions.
this is usefull for cst adjustment
Sairam
(Article assistant)
(159 Points)
Replied 25 May 2013
Dear Mr.Shanmugam,
First of all ur reverse credit calculation is wrong.
It is total itc X Sales outside TN/total sales. which comes to 12250*25000/130000=2355.769, to be rounded off to 2356. Hence itc available for set off is 12250-2356=9894. on which u can adjust sales made inside tn, i.e. 6350. it comes to 9894-6350=3544. But am not sure whether u can adjust cst payable against VAT input credit
Sairam
(Article assistant)
(159 Points)
Replied 25 May 2013
| Originally posted by : Sairam | ||
 |
Dear Mr.Shanmugam, We can claim VAT input against CST payable with "c" form. Hence 3544-700=2844 to be carried forward as per my calculation and knowledge. Kindly correct me if I am wrong. Regards Sairam.S |
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afzal bhimani
(GM)
(21 Points)
Replied 21 July 2013
ankit
(accountant)
(28 Points)
Replied 20 April 2014
Dear Sir/Madam Please calculate the CST & VAT Liability of 4th QTR. SALE 2% (CST) 17106 , 5% (CST) 10926 5% (vat) 104211 5% (vat Wct) 39043 VAT refundable 3rd QTR 24803 Purchase 12.5% (vat) 3339 5% (vat) 87018 12.5% (vat Wct) 1881 5% (vat Wct) 7027 SAME CHALLAN I FILL BOTH LIABILITY YES OR NOT PLEASE CLEAR
Deepak Sharma
(Accountant)
(21 Points)
Replied 16 June 2014
R/Sir,
My problem is that my company it is (Pvt. ltd.) purchase goods for other state and also sale goods to other state. can we take advantage of input cradit in tax return.
Ex. input cst- out put cst = cst payable or receiveable
Please reply..
CA Ankit Banka
(CA)
(183 Points)
Replied 26 June 2015
Can we adjust ITC left after adjustment of VAT output with the CST liablity in case the assesse is an EXPORTER.
Thanks & regards
Ankit Banka
CAclubindia
