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vat and cst

Former Member
0 Kudos
58

Hi all

VAT is charged on sales within State.

& CST on sales outside state

Is this correct?, pls explain the general concepts.

regards

Banu

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

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.

Answers (3)

Answers (3)

Former Member
0 Kudos

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

Former Member
0 Kudos

>

> 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

Former Member
0 Kudos

Cst --- for materials procuring from Other states

VAT--- It applicable with in state