applicability of vat

My client is a construction firm in Chandigarh. We want to buy a second hand machine from another firm in Punjab. The selling firm is saying that it purchased the machinery from Gurjat buy paying CST @2% on the transaction. Now if it sells the machinery to us, it would charge cst as applicable. Please guide us whether this is true and we have to pay CST for purchasing the old machinery from said firm?


Do Punjab and Chandigarh have the same tax regimes (meaning - are they considered separate States (I know Chd is a UT but you get my point))? If they do, then no CST only VAT shall be payable. If they do come under different jurisidictions then CST shall be payable.




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