Vat or cst
This query is : Resolved
08 May 2016
whether purchase against c form affect on the cash liquidity of the concern if the goods are sold in state I.e purchase at 2% cst and sold at 12.5 vay
Amol S Joglekar
(Expert)
09 May 2016
it is regarded as first sale in the state and hence the state VAT rate becomes applicable. I am NOT getting what you propose to mean for LICQUIDITY?
Amol S Joglekar
(Expert)
09 May 2016
it depends upon the situation.
Say, if the outside state purchase against C form is for captive consumption, then you land up paying only CST and dont have to pay VAT.
Say, if the outside state purchase against C form is for captive consumption, then you land up paying only CST and dont have to pay VAT.
09 May 2016
the case is as follows, dealer in Maharashtra purchases goods from goa against c form and sells the same goods within the state @ 12.5% vat.. so the along paid as cst is nothing but a cost , in addition 25% of the sale are credit sale so does it affect the cash liquidity of the concern?
Amol S Joglekar
(Expert)
10 May 2016
This you should have stated in the query itself, isnt it?
Anyway, your contention is right. It will hamper the cash flow.
Anyway, your contention is right. It will hamper the cash flow.
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