on 2008 Jun 18 11:38 AM
Hi all
VAT is charged on sales within State.
& CST on sales outside state
Is this correct?, pls explain the general concepts.
regards
Banu
Hi,
VAT -- Value added tax --- applicable to your manufacturing and trading business when you add value and sell. Collected by the state govt. There will be a TIN no. which is like our PAN no. and company has to mention in all documents being used for intra state transfer.
CST -- Central Sales tax--- applicable to sending, receiving goods interstate Collected by the central govt.
There will be a CST no. which is like our PAN no. and company has to mention in all documents being used for inter state transfer.
Goods moved without these numbers in the document are liable to pay penalty which can go to big amounts depending on the value of the goods.
Wrong entry of these numbers in the documents is also liable for penalties.
Best regards,
Sridhar.
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Hi,
In addition to above,
VAT can be utilised for credits if you have added value to the material(if it's concerned with manufacturing) whereas CST is a income tax where you get material from other state for which you pay tax to government.
Regards
Regards
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>
> Hi all
>
> VAT is charged on sales within State.
> & CST on sales outside state
>
> Is this correct?, pls explain the general concepts.
>
> regards
> Banu
Hi,
In addition to above,
VAT can be utilised for credits if you have added value to the material(if it's concerned with manufacturing) whereas CST is a income tax where you get material from other state for which you pay tax to government.
Regards
Regards
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Cst --- for materials procuring from Other states
VAT--- It applicable with in state
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