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Categories >> Accounting >> Taxation
 
 


 

 
 Audit interview questions  Audit Interview Questions (428)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (158)
 Taxation interview questions  Taxation Interview Questions (1905)
 Accounting General interview questions  Accounting General Interview Questions (2833)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4369)
Question
what is vat?
what is excise?
what is form c & d in sales tax?
 Question Submitted By :: Taxation
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
VAT is Value Added Tax. It is tax chared by the registered
dealer at the time of sale of goods just like Sales Tax. A
vat dealer can claim credit of vat on good purchased by him
just like excise duty.
While Excise is the tax on goods produced but charged at the
time of its removal i.e. at the time of sale.
Form C is issued by a reg. dealer(purchaser) to seller of
goods in case of CST so as to charge him sales tax at lesser
rate whereas the form D isissued by the govt to the seller
of goods for the same reason.
 
Is This Answer Correct ?    732 Yes 187 No
Sanjay Chadha
 
Answer
# 2
Form C is issued by the dealer for purchasing goods from
the dealer out side the state in which he resides the
effect can be understood ny looking at following example

IF Mr A Registered Dealer in Hyderabad (AP) wants to
purchase goods from Mr B a registered dealer in Mumbai.Mr
B who is selling the goods will charge VAT @ 4% or 12.5% on
the goods if Mr A issues him "C" Form then Mr B should
Charge him CST @ 2% so Mr A is SAving Tax.

Form D serves the same purpose but it has to be issued by
government
 
Is This Answer Correct ?    449 Yes 143 No
Mohd Abdul Qader
 
 
 
Answer
# 3
VAT:- Vat is a value added tax which first time used in
Brazil.In Delhi Vat come into force on 1st April 2005.It
charged by a registerd dealer to register dealer on Tax
Invoice & a registerd dealer to unregister dealer on Retail
Invoice.
C-Form:- C FOrm is issed by a register dealer to a register
dealer only for againt central sales tax i.e., CST.
For example: Mr.A Register in Delhi sale to Mr.B Register
in Haryana. If A sale to Mr.B for 2%(form 1st june 2008 to
till now)than Mr.A will recive c form from Mr.B & submit to
his athority in Delhi.
 
Is This Answer Correct ?    223 Yes 21 No
Kulbhushan Sharma
 
Answer
# 4
value added tax called vat,registered dealer charged tax to
purchaser and deposit the same in sales tax department,there
are so many rates are defined from sales tax department.when
sales within state, dealer charged vat tax and out of state
dealer charged cst @2% with form "c".so we can say form "c"
is a documents for tax saving within interstate business.
Example :-
if material purchase within State and item tax rate is 12.5%.
Item amt. :- 100.00
Vat @12.5% :- 12.50
Total purchase value is 112.50/-
if material purchase out of state (cond. dealer and
purchaser both are registered )

Item amt. :- 100.00
CST @2% against form "c" :- 2.00
Total purchase value is 102.00/-
 
Is This Answer Correct ?    321 Yes 133 No
Ritesh
 
Answer
# 5
Mr Sanjay Chadha! I agreed vid u. 
Is This Answer Correct ?    224 Yes 177 No
Manoj Thakur
 
Answer
# 6
Generally it is very necessary to make common understanding
about that what is VAT? As every one knows that it is just
value added tax? does common man know what it contains and
how to functions? It is well known fact it came from brazil
and then to delhi. What is the basic purpose in it?For
example If i manafacture a mineral water bottle, when it
comes out of the manafacture gate i'm levied with excise
duty of 10.3%. But from the gate if i want to make a sale
within my state for instance i'm from tamil nadu i'm
eligible for vat tax that is 4% for finished goods and 12.5%
for semi-finished goods. This has to be registered with
commercial taxes department then ill b alloted with TIN NO
means (TAX IDENTIFICATION NUMBER) chennai since i stay here
and it differs from district to district and state to state.
CST comes to play only when the sale is interstate for eg:
if i got an order from UP for my mineral bottle. If my buyer
wants to get cst benefits he must give form c for 2% cst it
means he is registered under central sales tax then he
becomes registered dealer for buying else if he is
unregistered dealer has to pay vat taxes either 4 or 12%
based on the nature of the product i'm selling as finished
or semi-finsihed goods. and i'm already a registerd seller
for selling because i already registered under commercial
sales dep. one may have a question that you have registered
only for vat but not for cst. but now a days properitors
when they register sales tax obviously they are registering
for cst because they become eligible for interstate sale as
well as interstate purchase dealer for their future
business. But al this can be exempted when they export goods
which means out of india to abroad nations that is the
beauty of the govt encouraging exports more than imports.
hope i made a basic understanding for common man. any
suggestions always welcome.
 
Is This Answer Correct ?    43 Yes 5 No
Rakesh.m.d
 
Answer
# 7
VAT (value added tax)means difference between selling price
and purchase price. Basically, VAT is multi-point tax, with
provision for granting set off credit of the tax paid at
the earlier stage.this process continues till goods are
finally consumed. Hence, VAT is termed as consumption type
tax. Generally It is aplicable for within a state.
(N.B:- Generally any tax is related to selling price of
product.)
EXCISE - While Excise is the tax, it is imposed by
manufacturer on manufacturing goods and manufacturer
recover its at the time sale the manufacturing goods.
Form "C" - Form "C" is a declaration form under CST act.
This form used for rabbet on sales tax. If a registered
dealer sale to another registered dealer and goods moved
from one state to another state.This sale inter sate sale
under CST act,at that time we will used form C.
Form "D" - Form "D" is a certificate under CST act. If
government purchase goods from a registered dealer at the
time government issued form D to seller. (For saving tax)
(N.B:- Form D is cannot be issued in case of sale to
government on 1-4-2007)
 
Is This Answer Correct ?    16 Yes 6 No
Chakradhara Mandal
 
Answer
# 8
Mr. Chakradhara Mandal I agreed vid u. allso some described
below;

VAT:- Vat is a value added tax which first time used in
Brazil.In Delhi Vat come into force on 1st April 2005.It
charged by a registerd dealer to register dealer on Tax
Invoice & a registerd dealer to unregister dealer on Retail
Invoice.
C-Form:- C FOrm is issed by a register dealer to a register
dealer only for againt central sales tax i.e., CST.
For example: Mr.Chakradhar Mandal is a Register in Orissa
sale to Mr.Sujit Biswal Register
in Haryana. If Mr. Chakradhar Mandal sale to Mr.Sujit
Biswal for 2%(form 1st june 2008 to
till now)than Mr.Chakradhar Mandal will recive c form from
Mr.Sujit Biswal & submit to
his sales tax assessing athority in Orissa.
 
Is This Answer Correct ?    12 Yes 2 No
C. D Mandal
 
Answer
# 9
VAT:- IT IS A MULTI SALE POINT OF TAX WITH SETOFF. THAT
MEANS CHARGED BY THE REGISTERED DEALER(SELLER) TO
REGISTERED DEALER(PURCHASER). IF IT IS WITHIN THE STATE
THAT IS VAT WILL APPLICABLE WHERE AS INTERSTATE C.S.T WILL
BE APPLICABLE.IF PURCHASER ISSUE FORM'C' TO THE SELLER THEN
THE RATE OF TAX WILL BE REDUSED THROUGH 'C' FORM. FORM D
WILL BE ISSUED BY THE GOVT. TO THE SELLER INTHE SAME WAY.
EXAMPLE:
IF A PURCHASE GOODS FROM B. B WILL CHARGE SOME AMOUNT
INCLUDING TAX. IF A ISSUE'S FORM 'C' THEN THE TAX WILL BE
REDUCED. SO A IS SAVING OF TAX.
 
Is This Answer Correct ?    12 Yes 3 No
Surya. Gangadhar
 
Answer
# 10
Form C is issued by the dealer for purchasing goods from
the dealer out side the state in which he resides the
effect can be understood ny looking at following example

IF Mr A Registered Dealer in Hyderabad (AP) wants to
purchase goods from Mr B a registered dealer in Mumbai.Mr
B who is selling the goods will charge VAT @ 4% or 12.5% on
the goods if Mr A issues him "C" Form then Mr B should
Charge him CST @ 2% so Mr A is SAving Tax.

Form D serves the same purpose but it has to be issued by
government
 
Is This Answer Correct ?    55 Yes 51 No
Kathiravan
 

 
 
 
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What are the new TDS rates for Contractor and Sub Contractor for the F.Y.2009-10   2
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Sir, An Awarder make part payment to the Contractor after deducting retention money @5%. The retention money will be paid to the contractor when the contract work is fully completed. Here my question is,when the Awarder has to deduct tax on retention money, at the time of deducting the retention money or at the time of payment of retention money when the contract is completed? Here "Tax" means Income Tax, VAT, Service Tax etc. Please reply Thanking You   2
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What is WCT? On Which it is calculated?pleasegive any example.   1
we can cash slase above 20000? and if party pay the above 20000 we can give the recipt.   1
When i deduct TDS from my Sundry Creditor, i have to provide him TDS Certificate, after submitting the TDS Certificate to the party what Procedure i have to follow from my Company ? TATA 1
how to calculate tds on salary.if the 500 employee work in my company.so how calculate tds for each employee.   1
 
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