Sales tax or vat which one applies

Ravishankar K (Accountant) (461 Points)

07 January 2014  

Dear Friends, I need the following information regarding the basics of SALES TAX / VAT in Chennai. Is Sales Tax & VAT the same or is VAT the other name / substitute for sales TAX. Service Tax, Income Tax etc is directly paid to Central Govt, whereas is VAT paid to State Govt?? Does an organisation need to have both CST No & TIN No???? In what cases the nos have to be acquired. Assume I am a company who is selling electronic goods, I buy the goods @ Rs.100/- and sell the goods @ Rs.110/- as per Chennai jurisdiction what taxes am i bound to pay on the sales for typical two examples:

 

Sales to Chennai / Tamilnadu party: Purchase PRice Rs.100/- Profit : Rs.10/- Taxes (Mention name of Tax & Rate) :Rs.... Total Sales Price............

 

Sales to Out of State eg. Maharashtra Party: Purchase PRice Rs.100/- Profit : Rs.10/- Taxes (Mention name of Tax & Rate) :Rs.... Total Sales Price............