Input DVAT

[Mrityunjay jha]

Sir,

Please advice

Input DVAT adjusted with CST Paybale, if not given notification no & dated .

[YAGAY andSUN]

You can adjust the Input Tax Credit against the liability of CST.  But in DVAT there are provisions that if you avail Input Tax Credit @ 5% or 12.50%, and you sell goods against 2% then you would have to reverse the proportionate ITC.

AI Summary

Input tax credit adjustment allowed against CST but requires proportionate reversal where concessional rates apply. Adjustment of Input Tax Credit against Central Sales Tax liability is permitted, but where sales are made under a concessional rate scheme the dealer must reverse the proportionate share of input tax credit attributable to those concessional sales under DVAT provisions.