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CST RATE IN PUNJAB

abhishek (Internal Auditor) (181 Points)

15 February 2010

GM .. I AM ABHISHEK FROM JALANDHAR PUNJAB..IPCC STUDENT.. VAT HAS INCREASED FROM 4 TO 5.5% IN PUNJAB..ON PVC PIPE FITTING, WHAT WILL BE CST TAX RATE TO SALE IN INTERSTATE..?

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12 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 15 February 2010

Dear SIR

CST RATE WILL BE SAME AS ALL STATES AND CST WILL BE 2 %

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sony10 (Manufacturer) (113 Points)
Replied 15 February 2010

Dear Mr. Pankaj,

Without form 'c' what will be the tax rate 5% or 5.5%. And please also inform whether ITC will be 5.5% or 0.5% is non refundable?

thank you very much.

abhishek (Internal Auditor) (181 Points)
Replied 15 February 2010

WHAT WILL BE CST RATE TO INTERSTATE DEALER ....? 4% OR 5% OR 5.50%

subramanya (Professional) (907 Points)
Replied 16 February 2010

Originally posted by : abhishek
	WHAT WILL BE CST RATE TO INTERSTATE DEALER ....? 4% OR 5% OR 5.50%

Dear Abhishek,

[With respect to Punjab VAT]

As the Vat rates changed from 4% to 5%, the interstate central Sales tax also will get changed to 5% and i think surcharge is applicable for local sales i.e, within Punjab only.

Also No state Govt can impose tax more than 4 % on Declared Goods ,defined under section 14 of the CST act 1956. Hence 4% and 5% both VAT rates are applicable in Punjab.

For both 4% and 5% local Sales/Purchases, 10% surchage is applicable.
I think for Interstate sales, 10% surchage is not applicable.

With regards,
Subramanya

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abhishek (Internal Auditor) (181 Points)
Replied 16 February 2010

Thanks Mr. Subramanya...

you are right.....

you mean to say cst rate to registered dealer will be 2% & unregistered will be charged 5%...

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abhishek (Internal Auditor) (181 Points)
Replied 17 February 2010

i am working in a firm witch produce pvc pipe fitting.before 29 jan ,2010 vat rate in punjab was 4% & cst was 2% to rd sale, 4% to un. regd. sale......... cst rate to un.rd. dealer interstate was 4% because rate of vat in state was 4%. .....now vat rate in state is 5 + 10 % ........ i think cst will be to un regd. dealer 5 % or 5.50% .......... and cst rate to registered dealer will be same @ 2%...... please give your recommendations

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subramanya (Professional) (907 Points)
Replied 17 February 2010

Originally posted by : abhishek
	i am working in a firm witch produce pvc pipe fitting.before 29 jan ,2010 vat rate in punjab was 4% & cst was 2% to rd sale, 4% to un. regd. sale......... cst rate to un.rd. dealer interstate was 4% because rate of vat in state was 4%. .....now vat rate in state is 5 + 10 % ........ i think cst will be to un regd. dealer 5 % or 5.50% .......... and cst rate to registered dealer will be same @ 2%...... please give your recommendations

CST rates will be excluding Surcharge means its 2% against Form C and 5% without Form C.

Subramanya R

abhishek (Internal Auditor) (181 Points)
Replied 17 February 2010

ok ..

thanks sir...

TimTaxMan (CPA) (26 Points)
Replied 23 February 2010

Mr. Subramanya...

are you saying that the recently adopted 10% additional tax in Punjab only applies to the state VAT and not the CST for interstate sales? Do additional taxes normally apply to CST?

Thanks

subramanya (Professional) (907 Points)
Replied 26 February 2010

Originally posted by : TimTaxMan
	Mr. Subramanya... are you saying that the recently adopted 10% additional tax in Punjab only applies to the state VAT and not the CST for interstate sales? Do additional taxes normally apply to CST? Thanks

The recently adopted 10% surcharge is applicable to local Sales/Purchases only (within Punjab Transactions).

For example, in Kerala, Social Security cess 1% will be collected on VAT amount. Here this Cess is applicable to the transactions within State only.

Howerver, there is an exception. Incase of Gujarat, Additional tax (On Assessable Value) will be collected at a rate of 1% and 2.5% on both Local and Interstate transactions (lol)

In General, these Surcharge, Cess or Additional tax will be applicable within state only (with exceptions)

Subramanya

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TTTax (CPA) (40 Points)
Replied 02 March 2010

Thank you Mr. Subramanya. Maybe you can help me with something else.

I am new to Indian taxes. I am understanding the state VAT fairly well, however it is the CST that I am struggling with. The rate appears to be 2% when selling to registered dealers, correct?

The part that I am not understanding is the correlation between the VAT rate and CST for sales to unregistered persons. Does the CST basically mirror the state VAT? Are the rates always the same? If the VAT is 12.5%, is the CST the same for a similar transaction interstate? If a state's reduced rate changes for VAT, does it automatically change for CST? I have read many Notifications detailing changes in VAT rates, but they never mention the CST.

Thanks so much!!

subramanya (Professional) (907 Points)
Replied 03 March 2010

Originally posted by : TTTax
	Thank you Mr. Subramanya. Maybe you can help me with something else. I am new to Indian taxes. I am understanding the state VAT fairly well, however it is the CST that I am struggling with. The rate appears to be 2% when selling to registered dealers, correct? The part that I am not understanding is the correlation between the VAT rate and CST for sales to unregistered persons. Does the CST basically mirror the state VAT? Are the rates always the same? If the VAT is 12.5%, is the CST the same for a similar transaction interstate? If a state's reduced rate changes for VAT, does it automatically change for CST? I have read many Notifications detailing changes in VAT rates, but they never mention the CST. Thanks so much!!

Incase of Interstate Sales, applicable rate will be 2% i.e., nothing but Concessional rate (if you are selling goods a person who is outside the state and if he is registered, rate will be 2% and in return your customer should get C form from his local vat office and give it you).

If it is not against Form C, local VAT rates are appliable. Assume you are selling goods outside the staet (goods of 12.5% in your local state) if it is against Form C it will be 2% and without C form it will be 12.5%.

Withr regards,

Subramanya