applicable taxes for inter state movement of goods?

[srinivasan m]

I am manufacturing yarn dyed cotton fabrics and i want to supply to other states like mumbai & delhi. Is there any tax applicable to sell from my state tamilnadu to other states? If so please tell us what tax applicable?

[Ganeshan Kalyani]

CST @2% is applicable with Form C or CST @full tax if transacted without Form C. In addition to this entry tax may be applicable. In Mumbai in some part of area Octroi is applicable, in some part of Maharashtra Local body tax is applicable. In other state way bill requirement is also there. Thanks.

[YAGAY and SUN]

Cotton Fabric is an exempted goods under Tamil Nadu VAT Act. Please check Section 15 of the Act read with Entry Number 5 of the Schedule IV part A. Therefore, no tax would be charged in Inter State Sales.

AI Summary

Interstate sale tax treatment: central sales tax applies with prescribed certificate; state VAT exemptions can render supply tax free.
Central sales tax applies to inter state supplies with concessional treatment when the purchaser provides the prescribed certificate; without it, full central sales tax is chargeable. Local imposts such as entry tax or octroi and transport documentation requirements like waybills may also apply. State VAT exemptions for particular goods can eliminate VAT on the sale, subject to the statute's schedule and conditions.