Tax rate & exemption

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This query is : Resolved

CA Sanjay Baheti (Querist)

01 March 2011 My client being a Private Ltd.Company incorporated in Ahmedabad (Gujarat) & having registered office in Ahmedabad also. Further the company is having Plant/manufacturing facilities as well as Admn. office at Bhilwara in Rajasthan.

Also the Co. is registered dealer having TIN & CST NO. obtained from Bhilwara (Rajasthan).

Now the Co. wants to purchase Copper Scrap (being Ferrous/non ferrous Metal) from Ahmedabad (Gujarat) used as raw material i.e. input for manufacturing the goods being exported.

Now query is whether Co. can Purchase such materials against C Form @ 2% or not.Further when the manufactured/Produced Goods are being exported outside India then Any local vat rate is applicable & if applicable then at what rate.also confirm whether CST Paid @ 2% is reimburshable/refundable at the time of Export.

Or when goods are exportable whether the same are exempted from VAT or not.

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)

01 March 2011 Yes company can purchase raw materials from Gujrat against C form by paying 2% CST. No VAT is applicable if the goods are exported.
CST paid on purchases is not refundable.

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