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Liable to vat

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This query is : Resolved

chander (Querist)

27 March 2014 Dear Sir,
I am Trading in footwear Products and i got some order from Rajasthan, so how Can i Bill the party my item is of 299 mrp and in rajasthan upto 499 mrp its tax free in footwear products , how to bill / or make invoice to patry do i need to pay the local vat tax of 4% + addvat 1 % generating out of gujarat sale bill as Rajasthan is tax free upto 499 mrp
Or i can issue him tax free ( bill without Vat ) to him
Please help

Amit Jolly

Amit Jolly (Expert)

27 March 2014 You are selling goods from Gujarat and footwear is taxable in your state.

you are selling goods in another state i.e. in rajasthan.

So as per CST Act,when you sell the goods ouside to your state than it is consider as inter state sale and on this you have to pay Central Sales Tax@ @2%.

Also,for this you have to take a declaration in Form C from Rajasthan.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

31 March 2014 As the goods are taxable in Gujarat you have to charge tax(CST) in your invoice at the local rates,or @2% against C form from your customer. The exemption in Rajastan on foot wear upto Rs499 mrp has no connection to your invoicing,because you are in Gujrat......mjk

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