Applicablility of VAT and CST

[Guest]

Dear Learned members,

This is with respect to the captioned subject.

In this regard, please take a note of the below mentioned facts of my case.

We have recently incorporated an LLP with our main business as manufacturing control panel for textile machinery and also providing them the necessary installation services.

Our place of business and registered office is in Gujarat. Further we have not started any business and very recently we have got our first order from a textile company based in Delhi.

Hence, my query is what are the taxes that I've to adhere to. I know that VAT will be applicable if we cross the threshold limit of Rs 5 lac turnover and for Service tax of ₹ 10 lacs but i'm confused about applicability of CST.

Plss help me regarding the same.

AI Summary

Newly Formed LLP in Gujarat Seeks Clarity on CST for Interstate Textile Orders; Experts Recommend CST Registration A business based in Gujarat, recently incorporated as an LLP, seeks advice on tax obligations related to their first order from a textile company in Delhi. They are aware of VAT and service tax thresholds but are uncertain about Central Sales Tax (CST) applicability. Experts advise that CST applies to interstate transactions, with a standard rate of 12.5% unless registered, which allows for a reduced rate of 2% with Form C. It is recommended to register under CST and consider entry tax and other potential taxes as the business grows. The advice provided has been appreciated by the inquirer.