SATISH (C&C ) (50 Points)
30 March 2009I am at Gurgaon, if I purchased "Projector" from Haryana state, I have to pay VAT at 12.5%.
If I source it by near by States (Noida UP) CST is 2% against C-Form.
Why this big diff of Tax structure, since base value is same in both places.
Regards,
Satish.H
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14487 Points)
Replied 30 March 2009
you can avail input vat. if you purchase withought c form then cst will also 12.5%
SATISH
(C&C )
(50 Points)
Replied 30 March 2009
Being the end user, shall I get Input VAT credit?
If YES, how to encash it ?
Regards,
Satish
Anoop
(Service)
(345 Points)
Replied 30 March 2009
Dear Satish
Since vat credit is applicble only on local purchase and no credit on cst purchase whether against C form or without C form. Hence it is always advisable to buy goods locally for trading concern.
Pravin Nemad-CWA
(Cost Accountant)
(60 Points)
Replied 31 March 2009
Even though base value for both taxes are same, but final landed cost under CST & VAT to end user is different. Under Inter state purchase End user will not get credit on his purchase hence his Landed cost increse by 2% (purchase against C form) . But if he purchase within state then, even though he pay 12.5% vat, still his landed cost is lower, because he will get credit.of whole vat amount, which is not permiseble for CST.
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