What is Rate of Vat/CST to be charged on goods?
View answer
While making Local Sales,
We charge the same rate for everyone (whether registered or unregistered)
Rates are given in Schedules of Vat Act
Example :-
However for Central Sales
If buyer is Registered and gives C Form ,we charge max 2% cst
If buyer is Unregistered or does not give C Form ,we charge CST at local Vat rate
What is C Form?
View answer
- It is a form given by buyer to seller in case of Interstate Sales
- It can be given by Registered buyers only
- It is given Quarterly party vise.
- One C form for all purchases from one party in one quarter
- If C form given, maximum 2%charged
- If not given, then CST Charged at full local vat rate of Selling Dealer
- Concession regarding CST is provided as there is no input of CST like VAT
DOWNLOAD AND TRY
Question 1
GOODS PURCHASED FROM WITHIN STATE AS FOLLOWS
| A LTD,DELHI | |
| Purchase | 200000 |
| 20000 kg*I0/kg | |
| VAT 5% | 10000 |
| 210000 | |
Suppose Sales made as follows
| PARTY | STATE | TYPE | QTY | Selling Price | AMT | VAT/CST | RATE | TAX | TOTAL |
| P | DELHI | REGISTERED | 6000 | 15 | 90000 | VAT | |||
| Q | DELHI | UNREGISTERED | 3000 | 14 | 42000 | VAT | |||
| R | MUMBAI | REGISTERED(C FORM) | 8000 | 15 | 120000 | CST | |||
| S | MUMBAI | UNREGISTERED | 2000 | 20 | 40000 | CST |
View answer
Since tax charged on purchase on 5%, Rate of tax on goods is 5%
We will charge 5% Vat on local Sales to Registerd dealer and unregisterd dealer
However on Central Sales,
If C Form given we will Charge 2% CST
IF no C form we will charge 5 % CST
| Vat Computation | Amt |
| Output Vat | 6600 |
| Input Vat | 10000 |
| Vat Payable | 0 |
| Vat Credit | 3400 |
| Add | |
| Operning vat credit | 0 |
| total vat credit | 3400 |
| Less | |
| Adjust against Cst | 3400 |
| Balance Vat Credit | 0 |
| CST Computation | Amt |
| Output CST | 4400 |
| CST Payable | 4400 |
| Less | |
| Adjust against Cst | 3400 |
| Balance CST Payble | 1000 |
Purchase 5% Local Dr 200000
Input Vat 5% 10000
To A Ltd 210000
P Ltd Dr 94500
To Sales 5% Local 90000
To Output Vat 5% 4500
Q Ltd Dr 44100
To Sales 5% Local 42000
To Output Vat 5% 2100
R Ltd Dr 122400
To Sales 2% Central C form 120000
To Output CST 2% 2400
S Ltd Dr 42000
To Sales 5% central 40000
To Output CST 5% 2000