intrastate sales under CST

[K Balasubramanian]

Our Tax Authorities levy 5% when sold within Tamilnadu and 14.50% (Without C Form) when sold to other state. Is this treatment correct?. What is the relevant Section/Rule/Notification please

AI Summary

Clarification sought on tax rates: 5% VAT should apply to interstate sales without C Form, not 14.5%. A query was raised regarding the tax rates applied to sales within Tamil Nadu and interstate sales without a C Form, questioning whether the treatment of 5% VAT within Tamil Nadu and 14.5% for interstate sales is correct. One response clarified that if a product is taxable at 5% within the state, the same rate should apply to interstate sales without a C Form. Another response noted that under the VAT regime, CST rates are governed by the VAT rates applicable to the goods intended for sale.