As per the understanding, If manufacturer or importer bills LST (means in the same state)wud charge 12.5% sales tax from wholesalers and for the same product no further sales tax will be charged by wholesaler (as credit given becoz of same state).
But if its CST- 12.5% salestax will be charged by manufacturer and again wholesaler will charge salestax 12.5% as per the requirement of the next state.
Pls confirm...
In this entire episode, If any stock transfers have to be made by any manufacturer to its any other billing locations,will there be any VAT against this....or its only levied on any sale.
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dear Sir, I would like to have some information from your side. How do you say that prices of commodities will reduce? at present though the manufacturer is charged tax he is efunded back after keeping 4% retention and the ultimate consumer was not charged at all. But now he will have full set off but the ultimate consumer will have to pay 12.5% this is a substantial % if the supply chain is long.
Please give me your view points. Regards Hemang D.Parekh
why cannot the committee accept a common vat model that can be implemented by all the states . this will have common provisions under the law and small changes can be made to accomodate minor grievances of the states . i.e the karnataka model appears to be the best so far and all states could just adopt this model by paying some royalty to the karnataka govt and make it an all india model . karnataka can also recover/share the cost it has incured over the last two years .
The article states 'At present, since inter-state transactions entail a 4 per cent levy of central sales tax -- that is, if a manufacturer in Maharashtra sells in Karnataka, the concerned company only pays 4 per cent to Maharashtra but does not pay tax in Karnataka -- a higher VAT at 12.5 per cent will naturally result in higher inputs costs.'
I was under the belief that the inter-state sale (not branch transfer) will entail a 2 percent levy under the VAT regime and not 12.5 percent.
