Difference between interstate purchase from chennai, mumbai

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Martin (Querist)

22 March 2013 I am in bangalore and interstate purchased from chennai, warangal and mumbai.

Chennai supplier has not added sales@2% in their invoice while Warangal and mumbai supplier added sales@ 2% in invoice seperatly.

How to treat them? Both are Interstate Sales Agaisnt C Form?

What could be the reason behind having difference in these invoice.

Please help me out.

Regards,
Martin.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

22 March 2013 For Interstate purchase, in the invoice need to add the CST, CST percentage is based on your C form applicable or not. if C form apply then rate will be 2% otherwise local vat rate apply as CST. you need to check with your chennai supplier about their invoice, why they not shown the tax

Martin

Martin (Querist)

24 March 2013 Thanks for your support, Mr. Ramesh.]

1. As you said, "If C form apply then rate will be 2% otherwise local vat rate apply as cst.

You mean by local vat rate in Chennai (Tamilnadu) or Local vat rate in Bangalore (Karnataka)

2. Can it be because of exemption of tax on certain products, supplier do not add cst also.

For eg. From chennai supplier, I have purchased fabric material and on fabric material no vat is there in chennai.

Could it be the reason for not adding CST also in invoice?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

24 March 2013
1. Yes. if C form not apply Local vat rate charged as CST. vat rate of the origin of the goods.since goods you are purchase from tamilnadu then local vate rate of tamilnadu is apply as CST.

2. Yes, incase the particular product got exempted from VAT, CST as well exempted

Martin

Martin (Querist)

26 March 2013 Thanks a lot, Mr Ramesh, once again.

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