Bhavana (Proprietor) (25 Points)
30 January 2015Dear Sir,
I am buying goods from Chennai and selling to retailer in Bangalore.
I am paying CST to my supplier and charging VAT from my customer, the customer is again charging VAT from final user.
Pls advise if we need to pay sales tax on 1 item 3 times (CST for inter state and 2 times VAT on intra state), is this ok or i can get refund of any of the taxes paid
Shobhit Goel
(Chartered Accountant)
(101 Points)
Replied 30 January 2015
Hi Bhavna,
Example - You are registered in Bangalore and making inter-state purchase from Chennai, you will pay CST and when you are making local sales, you shall charge VAT and if central, you shall charge CST.
You can not adjust CST paid on purchase with output vat and cst. Only local VAT paid on purchase can be adjusted with output vat and cst.
Thanks,
Shobhit
CA.Srikrishna Subudhi
(Profession)
(45 Points)
Replied 31 January 2015
It can not be treated as taxes paid two times.
Your customer at Bangalore can take input credit of VAT charged by you to your customer.
Also to reduce the CST paid by you to your chennai supplier you can use C-form purchase where you will need to pay only 2% CST.
Bhavana
(Proprietor)
(25 Points)
Replied 31 January 2015
Thankyou Shobhit and Srikrishna, your inputs are really helpful for me
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