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 andSUN]

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 Sales of Cotton Fabrics: Exempt under Tamil Nadu VAT but CST at 2% with Form C Applies. A manufacturer in Tamil Nadu inquired about taxes applicable for interstate sales of yarn dyed cotton fabrics to states like Mumbai and Delhi. One response indicated that Cotton Fabric is exempt under the Tamil Nadu VAT Act, referencing Section 15 and Schedule IV part A, meaning no tax would be charged on interstate sales. Another response mentioned that CST at 2% is applicable with Form C, or full tax without it, and highlighted potential additional taxes like entry tax, Octroi in parts of Mumbai, and Local Body Tax in Maharashtra, along with way bill requirements in other states.