Dvat/cst query

Originally posted by : Praveen Kr. Agarwal
	you should be charging Vat 12.5% as well as CST @ 2%

Well this will increase the basic price to almost 10-12%, however i will not be fulfill the order due to price escalation.

Dear Anubhav

It will not effect your cost for e.g

if you purchased goods of Rs 1000 (Cost of Goods) + VAT 12.5% 125.00 (Input Credit)

& sold the same at Rs 1200 (Material amount) + CST 2% 24.00 (adjustable with input credit)

Input Credit in Hand =125.00 - 24.00    = 101.00 (Either you can claim as refund frm Deptt or Carried forward to next period).

If  purchaser from UP is ready to provide you C-form then you can charge 2% of him.

If u raised inv @ 2% and later purchaser unable to provide C-form you will liable to pay rest 10.5% to Deparment.

You can also ask purchaser to Deposit security amount @ 10.5%, till u recd C form frm him.

I hope above points will be helpful for you,

Feel free to contact 

Deepak Sharma

deepak_8583 @ yahoo.com