10 August 2007
Data: The rate of VAT of Paddy 4% (i.e raw material) The rate of VAT of chuda -exempted (i.e.the final product) C.S.T. NIL State: Orissa
If a person purchases paddy from within the state then he has to pay VAT @ 4% and thereafter he sells the final product which is exempted from tax.
But what happen when the same person will purchase paddy from any neighbouring state, assuming that the rate of CST is 0%. a)whether he will have to pay VAT on the purchase price if it is purchased from outside state. what are its pros & cons.