CEO
24 Points
Joined August 2012
Can anyone guide me as to what is the best way I should bill my client?
My company is registered in Maharashtra for CST and VAT.
Now, I am buying & manufacturing goods in Maharashtra.
Therefore, the manufacturer is going to charge me VAT. After paying that bill with Vat, I am shipping & selling that good to a client in TamilNadu.
What should I charge to client in Tamilnadu for getting best benefit without loosing my profit margin?
I know I have to charge CST. And, if C-form is not available from client, I believe I can charge 12.5% CST to client in TN.
Would I be able to offset VAT with charged CST?
If I have to pay both, I will be at a loss. I don't want to end up paying
12.5% VAT + 12.5% CST = 25% total Tax. Or
Should I increase selling price/value to compensate for my local 12.5% VAT?
Please help as I am confused and don't know how to bill the out-station client.