Applicablility of VAT and CST

[Asked by 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

Central sales tax applicability: interstate transactions require CST registration and Form C for concessional tax treatment.
Central Sales Tax applies to interstate sales and purchases and has no turnover threshold. CST registration and listing of procured items in the CST certificate are required to use Form C and obtain concessional tax treatment on interstate purchases; absent registration or Form C, higher tax applies. On interstate sales, receipt of Form C from the buyer permits charging the concessional CST rate, otherwise the full destination-state tax applies. Monitor VAT and service tax thresholds and potential entry tax as operations grow.