Vat on petrol pump licence sale

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2013 please clarify the provision on petrol pump licence sale as well as export-import licence sale under Rajasthan vat act

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

05 December 2013 Sale of all kinds of intangible assets,like export-import licence,liquor licence,petrol pump licence etc are liable for 5% vat in Rajastan.....mjk

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2013 Sir, If license sale to Out of Rajasthan i.e. CST Sale than what is Tax rate

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

07 December 2013 Mostly,a buyer can not issue a C form for this purchase. Then it is the same rate i.e.5%.If he can issue a C form it will be 2%......mjk

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2013 Sir, Our client is a Exporter and he sale Import-Export licence sale out of Rajasthan against C-Form and he pay CST @ .5% on this sale.
Please clerify that he is doing right or not

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

02 August 2025 Here's a summary regarding **VAT on petrol pump license sale and export-import license sale under Rajasthan VAT Act:**

---

### 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%**.

---

If you want, I can help find the exact Rajasthan VAT provisions or official circulars related to this. Would you like that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!