CST, Entry Tax & VAT

[Muralidharan J]

Dear All,

I have purchased a Tourist vehicle from Madyapradesh with C Form Billing of 2% CST and i paid 12.5 % Entry Tax for TN Govt. Now as i want to resell that vehicle, can i collect the CST 2% and As well as 14.5% VAT from Customer. Pl Clairfy me. Since already i paid 2% as CST in C form Billing, and again 12.5% as ET to TN Govt. But my friends are saying that after sales of vehicle i have to pay 14.5% TN vat. (Balance of 2%, from 12.5% Entry Tax) is it so?

​

AI Summary

Local VAT applies on resale; purchase CST or entry tax payments do not determine sales tax liability.
Taxes paid on acquisition do not determine the taxability of subsequent sales; sales within the state are subject to the local VAT schedule and must be charged accordingly. Entry tax paid to the state does not automatically offset VAT on a later local sale. The validity of acquiring the vehicle against a Form C may be questionable and should be examined, but it does not alter that local VAT liability on resale is governed by state VAT law.