Vat or cst

This query is : Resolved

omkar (Querist)
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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

Amol S Joglekar (Expert)
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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?

omkar

omkar (Querist)
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09 May 2016 what I want to ask is do purchase against c form costs more ??

Amol S Joglekar

Amol S Joglekar (Expert)
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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.

omkar

omkar (Querist)
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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

Amol S Joglekar (Expert)
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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.

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