Vat and cot

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This query is : Resolved

Manjunath DS (Querist)

04 September 2011 Dear Expert..

I have an internal pharmacy in my clinic, for which i have to obtain Commercial Tax registration in karnataka state..

My turn over will be around 10-12 lakhs per annul..I may obtain drugs from other states for sale in my pharmacy..

Should i register for VAT or COT.. which is beneficial, and what is the basic difference between the two.. can i make interstate purchase with COT..

Thank u
DrManjunath

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

06 September 2011 Since you are the manufacturer you have to register under VAT, CST, Drugs, www.ctax.kar.nic.in/Basically there is no difference in VAT & COT

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

08 September 2011 Mr Manjunath,
Since you are making interstate purchases you are not eligible for registration under COT.Under COT,filing quarterly returns,no input tax credit,paying a flat rate of 4% on the total receipts,are the features.Under VAT filing monthly returns,paying out put@14%-input paid on purchases &I/S purchases allowed.
MJK

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