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Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2014 We have raised the Bill from Tamil Nadu to Mumbai Customer for Rs.10 lacs against C Form, 2%.
We have a Local Sandy PURCHASE.
How much Tax should be payable to CST & VAT.

Please give your valuable advice.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

11 June 2014 First for making 'sandy purchase 'from unregistered dealers you have to pay purchase tax at the rates applicable. Then,while declaring CST sales against 'C' form the purchase tax paid can be claimed as ITC.....mjk

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 O.K. I agree with you, Sir.
If we pay purchase tax to the State Commercial Department, at 5% . Can we set off CST 2% to VAT. If yes, then remaining 3% ITC available , how I can set off?
Please tell me this right or wrong given example:
URD PURCHASE FOR RS.10 LACS 5%
CST SALES FOR RS.8 LACS 2%
VAT SALES FOR RS.1 LACS 14.5%
VAT PURCHASE RD FOR RS.2 LACS 5%
WHOM TO PAY THE TAX CST OR VAT?

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