I am at Gurgaon, if I purchased "Projector" from Haryana state, I have to pay VAT at 12.5%.
If I source it by near by States (Noida UP) CST is 2% against C-Form.
Why this big diff of Tax structure, since base value is same in both places.
Regards,
Satish.H
you can avail input vat. if you purchase withought c form then cst will also 12.5%
Being the end user, shall I get Input VAT credit?
If YES, how to encash it ?
Regards,
Satish
Dear Satish
Since vat credit is applicble only on local purchase and no credit on cst purchase whether against C form or without C form. Hence it is always advisable to buy goods locally for trading concern.
Even though base value for both taxes are same, but final landed cost under CST & VAT to end user is different. Under Inter state purchase End user will not get credit on his purchase hence his Landed cost increse by 2% (purchase against C form) . But if he purchase within state then, even though he pay 12.5% vat, still his landed cost is lower, because he will get credit.of whole vat amount, which is not permiseble for CST.
CAclubindia
