17 November 2009
hello everybody i buy lubes locally paying vat and sell it to another state charging cst.how do i recover my input vat. VAT rate 12.5% CST rate 1%
17 November 2009
CST rate is 2 % from 01/06/2008 for which C form is required. So the buyer is issuing that. In the absence of C form higher rate of tax ,ie.state VAT rate, in your case 12.50 % , will apply to the interstate sale also.
17 November 2009
As explained by the expert, CST rate is 2% against Form C from 01/06/2008 and not 1%. So the buyer has to issue C Form which you have to submit to the sales tax dept. If C Form is not issued then you have to charge sales tax at local VAT rate. You can adjust you input VAT against payment of CST and incase you feel that you will have a large amount of credit even after adjusting for CST payment, then you can apply for refund of input VAT
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