C form query

jayendrasingh (Querist) 14 February 2014 This query is : Resolved
Respected sir,
i am goods purchaser of maharashtra(VAT 12.5%), i am purchasing goods from M.P.(VAT 13%)if i am receiving goods against C FORM(2%)how i will be taxed 1)dealer of M.P. will apply directly 2% to me? 2) and how i will pay tax?will i have to pay 2% + 12.5%(maharashtra vat) = 14.5 %?
dealer is saying that he will give goods against C FORM at 2%,but u have to pay tax 2%+12.5%(maharashtra vat)in maharashtra is it true?

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Rajendra K Goyal (Expert) 14 February 2014
Consult your tax consultant.

You may raise your query in CAClubIndia.

R K JAIN (Expert) 15 February 2014
In the case of inter state purchase you have to pay CST @ 2% against C form to the state of MP. This tax will be collected by the seller based in MP. Now, after purchase you will sale the goods in the State of Maharashtra and you have to pay VAT in Maharashtra as the rate of tax applicable on your goods in the State of Maharashtra or sale the goods in another State against C Form @ 2%.

T. Kalaiselvan, Advocate (Expert) 16 February 2014
A local tax consultant will be able to address this query in a proper way.

Anirudh (Expert) 16 February 2014
Mr.R.K.Jain, a renowned Tax Lawyer has very clearly and correctly given the answer.

R.V.RAO (Expert) 17 February 2014
agree with experts and wish to add that the purchases also being interstate ,the queriest is also not eligible for input tax credit.

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