about charging vat or cst on selling of imported raw material

[MEHUL ASHAR]

Respected Sir,

                        What we have to charge when we want to sell imported raw material, we have to charge 5% vat or 2% cst.

[YAGAY andSUN]

It will depend on the nature of the sale.  Meaning that if the sale is intrastate then you would have to charge VAT as applicable on the goods intended for sales.  If the sale is interstate then against form C, you will have to charge CST @ 2% and without C form either 5% or peak rate of VAT will be applicable.

 

Further, if you are selling imported material as such then you can avail the benefit of Notification No. 102/2007-Customs as amended time to time.

AI Summary

Interstate sale taxation requires central sales tax when form C provided; intrastate sales attract state value added tax. Whether VAT or CST applies depends on the nature of the sale: intrastate supplies attract VAT; interstate supplies attract CST where a valid Form C allows the concessional CST rate, while sales without Form C are liable to VAT at the applicable or peak rate. Sales of imported material 'as such' may qualify for benefits under the relevant Customs notification.