Difference Between VAT and CST

Mahavat 6215 views 2 replies

Dear CA Club Members,

 

What is Difference between VAT and CST  and Why

Supose I raising invoice out of State like Gujrat Charge Full VAT @ 12.5% it is Call VAT or CST...................?????

 

Regards,
Vishwanath Kumbar

Replies (2)
CST = Central Sales Tax
If customer issues the C-Form then 2% CST is applicable
otherwise full tax is applicable. that means it saves tax.
After delivery of material we have to collect the C-Form
from the party otherwise it is a liability during sales tax
assessment.
Originally posted by : Vishwanath Kumbar

Dear CA Club Members,

 

What is Difference between VAT and CST  and Why

Supose I raising invoice out of State like Gujrat Charge Full VAT @ 12.5% it is Call VAT or CST...................?????

 

Regards,
Vishwanath Kumbar

 Movement of Goods from one state to another state is covered under CST even if u are chargin full rate of tax (i.e, 12.5% as mentioned by you and this may vary state to state).


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