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Case 9
Suppose a dealer makes purfchase within state and sells outside state as follows
Purchase
| B LTD | |
| Purchase | 80000 |
| Vat 12.5% | 10000 |
| 90000 | |
Sales
| Z LTD | |
| Sale | 120000 |
| Cst 2% | 2400 |
| 122400 | |
In this case,Vat Credit is available which can be adjusted against CST
| Vat Computation | CST Computation | |||
| Output Vat | 0 | Output CST | 2400 | |
| Input Vat | 10000 | |||
| Vat Payable | 0 | CST Payable | 2400 | |
| or | ||||
| Vat Credit | 10000 | |||
| Less | Less | |||
| Adjust against Cst | 2400 | Adjust against Vat Credit | 2400 | |
| Balance Vat Credit | 7600 | Balance CST Payble | 0 |
