VAT and CST Rate @...?

This query is : Resolved

CA. Shwetank Vats (Querist)
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04 April 2009 We have taken DEPB benefit against export sales.
And DEPB sales to other importers.
Pl. suggest what the rate of VAT and CST on sales of DEPB.

Regards,

Dayal

Dayal (Expert)
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05 April 2009 Check out schedule of sale of intangible assets.

Normally it should not be more than 4% ( applicable in Maharashtra and CST again will be 4% since the buyer will not be eligible for issuing C form unless he is in the business of purchase and sale of DEPB licenses.

If you are selling it to the user directly then you will not receive the C form.

Therefore to avoid the future liability on account of non-receipt of Form C , ideally you should charge 4% or the % applicable in the state for intangible goods.