Vat and cot

This query is : Resolved 

04 September 2011

Dear Expert..

I have an internal pharmacy in my clinic, for which i have to obtain Commercial Tax registration in karnataka state..

My turn over will be around 10-12 lakhs per annul..I may obtain drugs from other states for sale in my pharmacy..

Should i register for VAT or COT.. which is beneficial, and what is the basic difference between the two.. can i make interstate purchase with COT..

Thank u

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
06 September 2011

Since you are the manufacturer you have to register under VAT, CST, Drugs, there is no difference in VAT & COT

MJ Krishnamurthy (Expert)
08 September 2011

Mr Manjunath,
Since you are making interstate purchases you are not eligible for registration under COT.Under COT,filing quarterly returns,no input tax credit,paying a flat rate of 4% on the total receipts,are the features.Under VAT filing monthly returns,paying out put@14%-input paid on purchases &I/S purchases allowed.

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