What is connection of sales tax calculation.

This query is : Resolved

ankur (Querist)
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26 July 2013 Dear expert,

please provide guidance for sales tax background and what is sales tax in real term. why cst is 2% and Vat is 5%?

RENGARAJ R.K

RENGARAJ R.K (Expert)
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26 July 2013 Dear Ankur,

CST : means Central Sales tax i.e materials are moved from one state to another state and therefore based on the local rates the CST is collected @ 2% against C forms.

VAT: VAlue added Tax 5% .This is collected for intra sale means within the state and every seller has to collect 5% till it reaches the consumer.