Vat Concepts

it depends on the states.So first mention it

Pls give me details of the state u stay in, accordingly details can be given,.

what about the manufacturers with multi-state manufacturing and distribution?

Hi, you can refer to the white paper on state level VAT issued by Ministry of Finance.. there you will get to know the fundamental concepts and principles of VAT regime.. and as VAT is a state subject, you have to refer to respective state VAT Acts for more elaborate discussions.. you can download the white paper from this link:- https://www.wbcomtax.nic.in/pdf/vat05-d2.pdf

For,Delhi

Madhya pradesh

Madhya pradesh

Madhya pradesh

for which state?

My question is with regard to manufacturing in, lets say Daman and Diu and then subsequent sale in Tamil Nadu.. Goods transferred (stock transfer) through MH and KA and subsequently sold by a clearing and forwarding agent in Chennai.. What all tax liabs will exist on this entire transaction? Also, which all states do not have excise? I heard that Gujarat is going to abolish excise? Is this true? Though not notified yet..

Dear Mr.Aditya Mudgal, The Excise and VAT are two different Laws. Excise is for manufacturing and VAT is for sales. Excise is managed by central Govt. whereas VAT is managed by state Govts. Whatever you manufacture in India, you have to pay Excise Duty only once that too only to Cent. Govt. Only Central Government has powers to make changes in relation to Excise. So Gujarat state cannot do anything in relation to Excise including its abolishion. Though VAT is managed is by State Govts. The Inter state sale is managed by a Central Law called Central Sales Tax Act. CST needs to paid in the state where the sale is being made. In sale from Daman to Chennai, there can be 'N' no. of states in between. But the transaction is a single transaction. So it will normally be taxed only at one place that is Daman. No other states can tax this transaction just because the goods crosses their frontiers. Hope you can understand.

Thanks...

One more thing...Can you offset your CST liability against the input tax credits available under VAT? Or is the state and central matter different here too?

yes