Adjustment of Vat Credit with CST

Last updated at April 16, 2024 by

 

First we adjust Output and Input Vat

If there is Vat Credit,then it can be utlized against CST Payable

Case 6

PURCHASES

B LTD   C LTD
Purchase 80000   Purchase 50000
Vat 12.5% 10000   Cst 2% 1000
  90000     51000

SALES

Y LTD   Z LTD
Sale 60000   Sale 120000
Vat 12.5% 7500   Cst 2% 2400
  67500     122400


What is  vat and cst payable?

 

View Answer

 

Case 7

A LTD   B LTD   C LTD
Purchase 40000   Purchase 80000   Purchase 50000
Vat 5% 2000   Vat 12.5% 10000   Cst 2% 1000
  42000     90000     51000

 

 XLTD   Y LTD   Z LTD
Sale 60000   Sale 60000   Sale 200000
vat 5% 3000   Vat 12.5% 7500   Cst 2% 4000
  63000     67500     204000

 

What is  vat and cst payable?

-a- 

Vat Computation     CST Computation  
Output Vat 10500   Output CST 4000
Input Vat 12000      
Vat Payable 0   CST Payable 4000
or        
Vat Credit 1500      
Less     Less  
Adjust against Cst 1500   Adjust against Vat Credit 1500
Balance Vat Credit 0   Balance CST Payble 2500
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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.