28 June 2012
I am buying a laptop from Dell and was required to send them Road Permit (form 50A) for them to ship it me as I live in West bengal. When I went to the sales tax office they asked me to pay 4% VAT and 1% entry tax.
I understand the entry tax, my question is
1) why am I paying 4%VAT when I am already paying 5% VAT to dell?
2) Do I need to pay VAT to each state? Seems so unfair, especially when other states don't have to pay the same. I ended up paying Rs. 3000 more just because I live in West bengal and not in Delhi. I will highly appreciate an experts view on this.
28 June 2012
Mr Raj, Your query is genuine. In southern states, there is no such system. Entry tax is ok, but you have paid vat4%. You should have asked the vat officer as to why 4% is collected and under what section. If lap top is bought for office use under concessional rate of tax from delhi, there is a chance to levy some tax if the said product is not endorsed in your cst certificate.
29 June 2012
Thanks a lot for your reply. This laptop is for my personal use and no part of it is being payed by the company. It is not practical to ask them the section details as they hardly entertain any questions, even related to the procedure.
Please suggest how I may come to know of the correct way I should have been taxed.