I am about to start a distributorship of an electronic product in Mumbai. The manufacturer is based out of Delhi and will be charging 2% CST on products that he sells to me. I want to understand the following:
1. What registration numbers do I need to apply for?
2. What will be the rate of VAT applicable on the selling price of the product - these are navigation devices that will be fitted in commercial vehicles?
3. Are there any other taxes other than VAT that will be applicable on sales that I make in Mumbai or those in Bhiwandi (outside Mumbai within Maharashtra)?
4. Will I be able to tax input tax credit of the CST, service tax and Octroi against the VAT applicable on sales effected in Mumbai and those in Bhiwandi?
Appreciate any help with the above questions.
CAclubindia
