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Vat purchase and cst sale

Others 1714 views 2 replies

Suppose A(dealer) purchases certain goods locally paying VAT- 

Basic Rs. 25000 
Excise(12.36%) Rs.3090 
Input VAT(5%) Rs.1404.5 
Total Paid Rs.29494.5 
 
Now A wants to sell the above goods to other state at CST and make Rs.200 net profit after payment of taxes and input credit. How will he account for it?

 
Replies (2)

Basic Value = 28290/-, CST @ 5% = 1414.50..

Dealer have to dischage Balance tax of Rs. 10/-  (i.e. Output Tax 1414.50 - Input Credit 1404.50)

his net profit will be Rs. 200/-

Sir, but CST rate is 2 %.


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