Hi,
Mr firm is registered in Bangalore, Karnataka
1. If I purchase a certain item from delhi, they charge me 12.5% CST (without formC)
2. If I purchase the same item from a local vendor (in Bangalore) I am charged 14.5% VAT
3. If I have to sell the same item to another person out of state? what is the rate of tax I should charge? VAT14.5% or CST12.5%?
Wheres points 1 and 2 are understood, Can someone answer point No.3, please?
BR, Jothi
VAT rate will be applied of the state from where the movement of goods started so you have to check karnataka VAT schedule for tax classification.
So if the purchaser is providing C form then rate will be 2% and otherwise local VAT rate for that product.
Do you know where I have a copy of the schedule?
I can't seem to find it anywhere on the net.
BR
use the below link
https://allindiantaxes.com/vat-karnataka.php
Hi Jothi,
As you are Selling goods from Karnataka, local vat rates are applicable for interstate sales also. means 14.5% CST is applicable.
If Interstae Sales are against C Form, then 2% is applicable.
With regards,
Subramanya
Thanks Subramanya,
Does it not result in unfair advantage for states that charge less VAT (at 12.5%)
The buyer will prefer to purchase from a state that charges less CST, states like Karnataka tend to loose on this front.
Pls reply
BR
CAclubindia
