banner_ad

CST RATE BETWEEN KERALA AND KARNATAKA

This query is : Resolved 
Profile Image

Profile Image

(Querist)
18 September 2007 WE HAVE GIVEN BUILDING MODIFICATION CONTRACT WORK TO A KARNATAKA PARTY. THEY HAVE BILLED US FOR THE ENTIRE AMOUNT AS SALE OF GOODS (WITHOUT MENTIONING LABOUR INVOLVED IN THIS) @ 12.5 CST. WORK IS AT KERALA. IS IT CORRECT. AND 12.5% CST RATE IS PREVALENT IN VIEW OF REDUCTION CST RATE. KINDLY CLARIFY.
Profile Image

Ravi Shankar

Profile Image

Ravi Shankar (Expert)
19 September 2007 In fact, the contractor should have deducted the labour component from the bill value and charged CST only on the material component. You may ask him to revise his bill accordingly. Effective 01-04-2007, the rate of CST is the rate of tax applicable in their state in absence of a C form. Since you may not be entitled to issue a C declaration form for the building works, you may have to pay the tax if the rate of tax applicable for the goods involved is 12.5% in the state of Karnataka. If some of the goods are taxable @ 4% he has to split the material component further into the applicable tax rates.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details