Ranjan (Article CA) (29 Points)
18 June 2010What will be the treatment of VAT Input Tax Credit in case where credit is taken on purchase but the product is transferred to the branch in another state from where the product is sold to the ultimate consumer?
Similarly, can the Input Credit be utilized for the payment of VAT levied on product which is transferred from the branch outside the state where the said product was purchased by paying CST(not VAT) on it?
Also, Where in the Act can i find the solution for it?
RAJU
(LEARNER)
(1089 Points)
Replied 18 June 2010
Hi Ranjan,
As far as in Karnataka, In case of stock of goods to other State, input tax will have to be foregone to the extent of 2%.
CST paid is not vatable. Hence, you cannot avail the credit.
Each State has its own enactment since the VAT is a State subject. You may have to go through all the provisions to understand the implecations.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
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