Vat on petrol pump licence sale
Querist : Anonymous
Querist : Anonymous
Querist : Anonymous
Please clerify that he is doing right or not
---
### 1. **Sale of Petrol Pump License & Export-Import License in Rajasthan**
* These licenses are considered **intangible assets**.
* As per Rajasthan VAT Act, the **sale of such intangible assets is subject to VAT at 5%**.
---
### 2. **Sale Outside Rajasthan (Interstate Sale) — CST Applicability**
* When such licenses are sold **outside Rajasthan**, it is considered an **interstate sale** and governed by **CST** (Central Sales Tax).
* **Tax rates under CST:**
* If the buyer **cannot issue C-Form**, the tax rate applicable is **5%** (same as local VAT).
* If the buyer **can issue a C-Form**, CST is applicable at **2%** ( concessional CST rate).
---
### 3. **On Export-Import License sale with C-Form**
* Normally, for interstate sales against C-Form, CST at concessional rate (2%) applies.
* However, your client is paying CST @ 0.5% on export-import license sale outside Rajasthan.
* This appears to be **incorrect** unless a special notification or exemption exists.
* Standard practice: CST on license sale is 2% against C-Form.
---
### **Recommendations:**
* Verify if any **special notifications or circulars** issued by Rajasthan VAT department allow 0.5% CST on export-import license sale.
* If no special provisions exist, the client should pay **CST @ 2%** on interstate sale against C-Form.
* If buyer cannot issue C-Form, the rate is **5%**.
---
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