VAT & CST

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

Replies (4)

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details