vat or cst

This query is : Resolved

Sreenivas (Querist)
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26 September 2008 Soft ware developed in banglore registered office and sold to govt department delhi, shall we put vat or cst in the taxation column, now cst is also reduced from 3% to 2% but vat is same for sale of software @ 4%.

Vasanth Kumar J K

Vasanth Kumar J K (Expert)
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26 September 2008 it will be cst sale at 2% if government department is eligible to issued Form-C.

As Form-D has been cancelled, where government departments use to issue for thier purchases.

Sale without Form-C the rate of tax will be the local rate of tax only.

Sreenivas

Sreenivas (Querist)
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26 September 2008 Dear Sir,You mean to say that we have to charge local Vat Charges 4%. we are not receiving the Form C

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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27 September 2008 Please ensure that whether the transaction will attract VAT or CST at all?

If it is a 'sale of goods' transaction:-
In case you are not receiving C form, you will have to charge CST at the rate applicable under VAT Act on local sales.

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