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
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)
Mr. Chakradhara Mandal I agreed vid u. allso some described
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
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.
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.
VAT is a multi-stage tax levied at each stage of the value
addition chain, with a provision
to allow input tax credit (ITC) on tax paid at an earlier
stage, which can be appropriated
against the VAT liability on subsequent sale.
VAT is intended to tax every stage of sale where some value
is added to raw materials,
but taxpayers will receive credit for tax already paid on
procurement stages. Thus, VAT
will be without the problem of double taxation as prevalent
in the present tax laws.
I have understood that "C" form is issued by the Purchaser
to the Seller to reduce CST at the time of Inter State
Sales. But for What reason Government is reducing the tax.
Does the end user of the Goods pays the required CST to the
Government. What kind of Declaratin is there in the C-Form
that the Government gives Exumption of TAX?
Suppose A, Delhi is selling material to B, Chhhattisgarh &
B wants this material at Bhopal. A bills like sold to party
B, Chhattisgarh & Ship to party C, Bhopal. Whereas C is a
site office of B. In this case whiling billing A required
TIN no of B & C or proving TIN no of B is enough?
Hi Every One..For Payment of TDS under any section, Challan
281 is used. In Challan 281 there is two boxes having name
Company & Non Company. What does it mean. I am working with
Ltd. Company so while paying TDS which box shall I mark.