We have a hotel project coming up in Mysore. We procure meterial from Mysore & in due course some meterial wiil be from other states & Import.
Pl.guide us whether we are eligible to register ourselves for VAT, & what benifits we will have?
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VAT treatment
Replies (1)
Dear Vijay,
If you are buying material from outside Karnataka, your supplier will charge you only 2% CST against form 'C', if you have VAT/CST registration. Otherwise Tax can be either 4% or 12.5%.
But ensure that all the material you buy interstate for your project are included in your CST certificate, so that you can issue form 'C' later.
I am not sure if you can benefit from the Local VAT credit for your project purchase.
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