What is the rate for without C-form

[Mathurthi RamKumar]

Dear All,

Good Morning and Greetings...

Kindly clarify my doubt. If a item have local tax (VAT) @5% , what is the rate for CST if this item sold to other state without C-form.

Regards

M.RamKumar

[YAGAY and SUN]

Dear Mathurthi Ramkumar,

The tax rate under CST Act, 1956 duly governs by the tax rate of any item under the State's VAT Laws. Hence, you would have to charge CST @ 5% on sale of such items.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[RENGARAJ R.K]

Dear Sir,

Yes it is 5% CST for interstate sale without C form when the local rate of vat is 5%. Please remember that when CST sale is effected without Form, you will have to reverse the ITC availed proportionately according to your state VAT Act.

regards,

rengaraj r.k

advocate

AI Summary

CST rate parity with State VAT applies; absence of C-form also mandates proportional ITC reversal.
An interstate sale made without a C-form is subject to CST at the same rate as the item's State VAT rate, and the vendor must reverse the proportionate Input Tax Credit previously availed pursuant to the vendor's State VAT Act.