Cst v/s vat
Ajaysankar P A (Student) (35 Points)
24 January 2015
if state government exempt a good from vat.if the good is sold to another state,is there any necesity to pay CST??
Ajaysankar P A (Student) (35 Points)
24 January 2015
Deepak Gupta
(CA Student)
(15922 Points)
Replied 24 January 2015
| Originally posted by : Ajaysankar P A | ||
 |
if state government exempt a good from vat.if the good is sold to another state,is there any necesity to pay CST?? |  |
Yes, CST should be paid even if sale of such goods inside a State is exempted as per the VAT Act of that State.
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As per section 6(1A) of the The Central Sales Tax Act, 1956:
“A dealer shall be liable to pay tax under this Act on a sale of any goods effected by him in the course of inter-State trade or commerce notwithstanding that no tax would have been leviable (whether on the seller or the purchaser) under the sales tax law of the appropriate State if that sale had taken place inside that State.”
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