Vat & cst requirement for vat exempted goods

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2013 Dear Friends,
Please let me know is VAT & CST no. is required if I am buying goods from outside of state and selling in and out of the state.
What kind of statuary requirements for selling and buying VAT exempted goods.

Thanks in advance.

CA UMESHKUMAR R. ACHARYA

CA UMESHKUMAR R. ACHARYA (Expert)
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09 November 2013
Yes You are required to obtain Vat and CST No. both in case of Interstate Transctions. In certain State one good is exempted from tax and in Other State it may be Taxable.

For e.g. Grey Cloth sale is exempted in surat but not in other states.

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2013 Dear Sir,
Thank you very much for your valuable feedback.Can you clarify if the goods is tax exempted in selling and buying both states then VAT & CST no. is required or not.
Thanks in Advance.

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Prakash Kochar

Prakash Kochar (Expert)
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10 November 2013 If the goods are tax free i.e. 0% tax rate as per schedule, in both the state You may not obtain registration. If the goods are exempt from tax conditionally you must take registration under both Act.