15 July 2011
i am registered dealer in Gujarat and manufacturing the automobile parts and paying vat #12.50%. I have an order from Delhi Railway Department (Govt hence no D form to be issued), in such case how much CST would be charged in Invoice???
15 July 2011
In our Gujarat state some experts are saying it would be @4%. Is this correct. (automobile prod. is taxed @12.50%) V S Datey's book shows that it would be only 2% even though no D form is issued as the Department is registered dealer. Further u say that it would be maximum. Maximum means what rate? is it @60%? or @12.50%?
15 July 2011
Thanks for solution. I need further clarification is that this issue is related to Govt Department which will not issue D form as such provision is omitted. Hence kindly suggest that should i sell the goods @2% (CST)to Railway Dept Delhi (Goods is automobile parts and sale is from Gujarat to Delhi).
but my query is still pending... i know that there is no difference between Govt and other registered dealer but Govt Dept wants to issue D form but provisionally it is not possible now (as per amendment) So here it is assumed that Govt Dept is registered hence CST would be 2% even though D form in not issued !!! Kindly resolve such issue. Hope for your prompt reply. Thanks for keen resolution of issue.
18 July 2011
2% Rate in CST is a concessional Rate against Sales Tax Declaration (i.e. C Form) and not for Registered Dealers.
If Any Customer whether it is govt. or not, fails to provide or will not able to provide Declaration in Precribed form, then you have charge Full Rate of Tax applicable in your state for that commodity.
Here, Firstly you have to confirm with specific Govt Department, whether they will provide any declaration, if not then you have charge full rate of tax.
CAclubindia
