CST 2%

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Ca Nitin

31 Points Joined March 2007

hi friends ,

i came to know from reliable sources that
if we buy something @ 4 % against C form
we can make inter state sale of that goods against C form at 2%

but problum is this i m not able to find this provision in the Act

can anybody help me where i can find this provision
is it in the Act or Rules or circular or notification or case law or it is an interpratetion of the law

regards
CA. nitin kumar
New delhi

Replies (4)

Manjunath

58 Points Joined March 2007

Dear friend,

Please note, when you purchase from interstate @ 4% against "C" form, you have to
charge full tax if you sell the same in your state, like that  you have to charge @ 4%
CST against  "C" form ( if no c form full tax ) if you sell the same at outside the state..

Thanks &  Regards,

MANJUNATH

finsuraj

34 Points Joined May 2007

What u have heard is not 100% wrong. Actually u/s 8(5) of CST Act, States have then power to reduce the rate of tax in CST sales for specified goods or specified asseessee etc. Using these provisions, certain States have issued various notifications levying lower rate of 1%, 2% tax on specified goods if sold under CST Act Suraj Prakash