Vat

vishal (Querist) 29 January 2014 This query is : Resolved
Sir,
I am A registered dealer under TNVAT and CST I am purchasing Valves in Chennai from the Manufacturer and selling it both in Tamil Nadu and to Dealers of other State. The Valves sold to dealers in other state are sold on 2% CST. Can I claim Credit for the excess VAT for the materials sold on CST?

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R.V.RAO (Expert) 30 January 2014
yes excess local state tax paid can be set off against cst liability
below given Example illustrates how excess vat credit can be availed.
Input tax on purchases within state
Rs 10000
Output tax charged for sales within state Rs 4500
Cst charged on interstate sale within a month Rs 15000
itc Rs 10000
vat liability (4500-10000 ) nil
excess credit Rs 5500
cst to be paid Rs 15000 minus 5500=9500

SOURCE:ICAI.ORG

malipeddi jaggarao (Expert) 30 January 2014
According to my knowledge, you can not carry over input tax for appropriation against output tax more than a calendar month. Kindly check-up.

Rajendra K Goyal (Expert) 30 January 2014
Contact your tax adviser.

T. Kalaiselvan, Advocate (Expert) 01 February 2014
Yes the local tax consultant will be in a better position to explain the position.

R.V.RAO (Expert) 02 February 2014
Mr.Vishal,
pl. come back with feed back if LCI advices were useful. this will help us serve better, for the future queries.

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