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Karnataka VAT and CST

(Querist) 25 June 2008 This query is : Resolved 
Karnataka VAT ( K-VAT) and CST

Please note that all below questions pertain to Karnataka VAT

1) Is it possible to claim set off of VAT paid on all items (including stationary, Furniture etc) bought by the company against VAT collected on all sales (i.e. sale of trading items)? If not what is the criteria for setting off?

2) For setting off should the % VAT be same? For example: An item is bought on which of VAT % is say 20%. If the items of the company is sold on which VAT % is say 4% can set off be claimed?

3) At present what are the rates of VAT prevailing?

4) Can VAT be set off against CST?

5) Is set off allowed under CST Act like it is in VAT Act? In other words can CST paid be set off against CST collected?

6) Are any registers to be maintained statutorily under VAT and CST Act?

7) In whose favour cheques are to be drawn for payment of: a) VAT b) CST.

8) Can one issue just one cheque for payment of both VAT and CST payable during a month?

9) Can cheque be paid along with VAT / CST return?

10) Are export sales exempt from Sales Tax?

10a) what is the difference between Tax invoice and Bill of Sale?

11) Are there any challans to be filled up for payment of VAT /CST?

12) Can payment of VAT / CST be made in banks instead of paying to the department

Please answer questionwise. Thanks .
Guest (Expert) 25 June 2008
Yes it is ppossible, if the goods are used fo business purpose.

2. Rate of tax is different and input credit is different, when you set off you deal with input credit. So possible.

3. Nil, 1, 4, 20 and 12.5%.

4. From 1.4.2008 possible, under a scheme.

5. Yes.
6. Register as per Form510 or 520 has to be maintained for VAT (DELIVERY NOTES) and CST C form issue register, E! form issue register

7. An head of account will be given or mentioned in the bank, you have to pay cheque to Bank.
8.Yes, better separate
9. yes.
10. Yes they are exempt.
11. Yes VAT 150 or 151 as the case may be.
12. You can't pay in the department, you have to pay in bank produce challan.
Anil (Querist) 26 June 2008
Thank you very much for the response given sir. It is very informative.

I request you to answer question 10a too.
I am reproducing the question below:

what is the difference between Tax invoice and Bill of Sale?


Guest (Expert) 26 June 2008
Tax invoice is an invoice as per section 29(1), where in it is said sale of taxable goods or exempt goods shall be by way of tax invoice where the tax is separately mentioned and time of sale shall be mentioned and other details.

Bill of sale is under section 29(3) where the bill covers sale by compostion dealers .

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