Sales tax clarification

Hi,

We are planning to start a trading business of spare parts. The Parts will be sourced from manufacturers and traders in delhi and andhara and we are planning to sell it in Bihar. Now my question is that when I but products from eithe manufacturer or trader I pay ED, CST,VAT when i sell I have to collect VAT and state sales tax. Is there offset avaliable for the tax paid on the purchase. If yes, please explain in some detail.

Thanks for your time.

Prasant

Replies (3)

if your business is situated in Bihar than you cant get credit of the CST, ED paid in Delhi or Andhra.

You can take credit of the VAT paid only in the state you are selling your goods.

So you will not get any credit. you have to charge the VAT and fully deposit the amount

Hi,

We have Ready-Mix-Concrete (RMC) Plant. We are supplying RMC for SEZ Unit. Our Invoice is without VAT Since it is SEZ.

This is in Andhra Pradesh

My Question is:-

1). Can we claim VAT Input on the purchases made by us. If "YES" under what provision & Notification.

 

Plz Reply

 

Thanks in Advance for your reply.

P.S.Rao

ITC is eligible only for local purchases, i.e intra state purchases from registered dealer and NOT on interstate purchases.  No set off is possible if materials are purchased from other state and sold in your state or to other state.

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